Agnico Eagle Mines (TSX:AEM; NYSE:AEM) has received the ruling of the Nunavut Impact Review Board saying that it has rejected the company’s application to expand the Meliadine gold mine, which is located 25 km from Rankin Inlet.
The application would have extended the mine life by 11 years to 2043. An 11-turbine wind farm was also proposed. In its document released Nov. 17, the NIRB said the proposal cannot be accepted now due to the considerable uncertainly of the potential for it to have negative and lasting effects on caribou. It also called out the uncertainly of cumulative effects.
During the public hearing in September 2023 that focused on Agnico’s plans, concerns about the local caribou dominated. The location of the proposed wind farm was also questioned. Agnico said on the last day of the hearing that it would work with local Indigenous communities to find a new site for the turbines, farther from the caribou calving grounds.
In a statement to CBC, Agnico said it is “surprised and disappointed” by the decision.
"We will take the time to fully review and understand the NIRB's recommendation report and assess our next steps before making any further comments," Agnico spokesperson Natalie Frackleton told the broadcaster.
The NIRB did, however, encourage Agnico to resubmit its proposal in the future.
The federal northern affairs minister Daniel Vandal has 90 to 180 days from the date of NIRB’s decision to either accept or reject it.
The Meliadine mine produced 372,874 oz. of gold in 2022 at a total cash cost of US$863 per ounce. At the end of last year, the mine had proven and probable reserves of 3.6 million tonnes grading 6.5 g/t gold and containing 3.8 million ounces.
Visit www.AgnicoEagle.com for more information on all of the company’s operations.
April 25, 2024
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