North 2003
Section Index
Mining in Northern Canada
Tungsten makes a comebackBut will it be for three years, or 30? / Court rules in company's favour on environmental review
CanTung Mine snapped back to life last year, awakened from almost two decades of slumber by a deal to sell its last three years of production.
Two of the world's largest tungsten buyers, Osram Sylvania Products Inc. of the U.S. and Sandvik AB of Sweden, are taking all the concentrate that CanTung can produce -- about 900,000 tonnes.
CanTung Mine and the nearby MacTung deposits contain 15 per cent of the world's supply of the metal. They are owned by North American TungstenCorporation Ltd.
The average annual price of tungsten since 1950 has fluctuated between a low of US $10 per tonne in 1963 and a peak of $175 in 1977. Prices have risen dramatically in recent years, mostly because China and Russia have run out of the stockpiles they've been 'dumping' for years.
The current U.S. spot market price for tungsten is $55 US per metric tonne unit. North American has not disclosed the price for its product.
CanTung
Discovered in 1962
Minimum resource base of 60 million tonnes, averaging .95 per cent
Deposit outlined by 1973
Completed pre feasibility studies
Can be readied for production in three years
Over 30 year mine life at 350,000 tonnes per year After securing a market for the concentrate, North American Tungsten raised $10 million from investors to bring its mine back to life. Start-up took six months, but production in the first year topped expectations by 33 per cent.
CanTung includes a mine town site. It employs 130 people directly, as well as private contractors, mostly caterers and truck drivers. Most of the mine's employees live in the Yukon.
The sale has North American Tungsten looking at the nearby MacTung deposit.
MacTung holds enough tungsten to produce 350,000 tonnes a year for 30 years.
North American Tungsten has exclusive rights to future development of its exploratory MacTung deposit.
It has been through feasibility and environmental studies, pilot tests and underground development work.
The company also faces the prospect of reclaiming CanTung.
A report from the Department of Indian Affairs and Northern Development says complete reclamation of the mine site would cost close to $48 million.
North American Tungsten has allotted $2.55 million.
Last April, the NWT court of appeal overturned a trial court decision allowing North American Tungsten to get a new water licence without conducting an assessment.
The decision lifted uncertainty from the operation, allowing the company to proceed with a water licence renewal.
The decision, is precedent setting. It defined the Mackenzie Valley Resource Management Act's statement that projects don't need an environment assessment if they obtained a licence before June 1984.
-Updated August 2003
