The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Observers predict the potential Lalor mine near Snow Lake could generate 400-plus jobs, but it may not be enough to make up for the positions being cut elsewhere within HBMS. The Winnipeg Free Press quoted the figure last week, and while it is only a best guess at this point, HBMS conceded it is not out of the realm of possibility. "I think it's too early to try and project with any accuracy what that (figure) could be, but a mine of the size that's speculated for the Lalor mine could certainly run somewhere in that range," said Tom Goodman, senior vice-president of operations. The prediction comes as HBMS prepares to close its copper smelter in 2010 and Trout Lake Mine in 2011, and months after it suspended its Chisel North Mine, possibly for good. If Chisel North, in Snow Lake, reopens, HBMS job losses will total about 450, not far from the Lalor prediction. If it stays closed, losses are in the range of 560 positions. The smelter employs about 225 people. Trout Lake employs about the same number this year, though reduced tonnage in 2010 could spell a smaller workforce. Chisel North was shuttered at the cost of about 110 jobs. It remains to be seen whether the Chisel North and Lalor mines may operate concurrently, since HudBay has previously mentioned plans to shift the Chisel North workforce over to Lalor. According to the Free Press, one or more mines at Lalor could have a lifespan of 15 to 20 years. HudBay CEO Peter Jones told the newspaper the mine would cost $450 million to bring into production. Still, no final decision on whether to mine at Lalor has been made, though many of those in the know suggest it is only a matter of time. "I would say it is virtually dead certain Lalor will be developed now, in my opinion," George Topping, a mining analyst with Blackmont Capital in Toronto, told the Free Press. Another analyst, John Hughes of Desjardins Securities, said Lalor's zinc alone, if priced between 80 and 85 cents a pound, would pay for the entire development of a mine Ð with cash to spare. Hughes said Lalor "was already going to be given a positive production decision" before last week's announcement of a possibly significant new copper-gold zone. See 'Two' on pg. Continued from pg. Analysts also told the Free Press they see enough ore at Lalor to warrant two separate mines Ð one for zinc and one for gold. If a decision to proceed is made, Goodman could not say when production might begin, preferring to let a company news release issued last week speak for itself. The release said HudBay expects to immediately commit to a pre-feasibility study and consideration of an early access to the Lalor deposit. Access would come either by dual shafts or a single shaft and ramp from Chisel North, three kilometres from Lalor. Also expected by early next month are conceptual project design parameters, including construction and production timelines, and capital costs. Lalor has no impact on the status of the copper smelter, Goodman said, noting the facility will still close no later than July 1, 2010. He said the financial challenges with the smelter exist today, while "you're talking about several years" before copper concentrate may emerge from Lalor. The smelter is also subject to stricter air quality guidelines coming into force in 2015, Goodman added. The vast potential of Lalor is certainly grabbing the attention of investors. On the day the new copper-gold zone was announced, HudBay shares rose 21 per cent to $11.30. Adding to investor confidence is the fact that HudBay already has more than enough in the bank Ð nearly $700 million Ð to develop Lalor. Even if Lalor can't make up for the smelter, Trout Lake and Chisel North jobs, there remain other promising deposits in the region, mostly around Snow Lake. Perhaps the most touted of these projects is Reed Lake, which some also consider to be a probable mine.
