Stornoway Gets 20-Year Mining Lease for Renard Project
October 19, 12
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Stornoway still needs a certificate of authorization from Quebec’s environmental department before it can begin constructing the mine. Company CEO Matt Manson said he expected the certificate would be issued by the end of the year.
The mining lease has been issued despite worries by analysts that the recently-elected leftist Quebec separatist PQ party would block the project. Immediately after taking power in September, the new government announced that a moratorium on hydraulic fracturing or ‘fracking’ for natural gas. The technique is said to impact the environment.
Environmental issues have brought about tough decisions on nuclear power and mining in particular and resulted in an overall shift to the left in political outlook. Manson said however, that for Stornoway, it was “business as usual” and that he did not foresee any fundamental change in overall mining policy.
Though waiting for final approval, Stornoway has nonetheless embarked on a study to optimize Renard operations and cut costs of the proposed combined open pit and underground mine. The project is estimated to cost $814 million and the optimization measures are expected to cut between $50- and $100 million.