Geodex ordered to conduct EIA on tungsten mine

New Brunswick'sDepartment of Environment is ordering Geodex Minerals to perform a full environmental impact assessment on its planned open pit mine near Napadogan.

The company is planning a molybdenum and tungsten mine in central New Brunswick,hoping toproduce 20,000 tonnes of ore per day when it opens up.

It registered the Sisson Brook mine project with the government on Sept. 5. On Friday, theEnvironment Department said in a releaseit wants a fullEIA rather than the other option, a streamlined one.

Jack Marr, the vice-president of exploration at Geodex, said the company fully expected that it would undergo the comprehensive environmental assessment.

"We didn't honestly expect anything else," Marr said after the department made the announcement Friday.

Geodex is estimating it will spend $50 million before ground is broken on the mine and an additional $400 million on the actual construction. If the project gets its environmental approval, Geodex plans to hire 750 people during the construction and between 200 to 250 full-time workers once it is done.

"Hopefully we could bring some of the guys back from Alberta," Marr said, referring to the people fromthe province who have gone to Alberta for work.

The company executive said the plan is to get the mine running by 2012 or 2013. The financial turbulence gripping the global economy is driving down many commodity prices, such as zinc and nickel.

However, Marr said tungsten is not being battered in the same way as other mineral prices.

"A few years ago, 2006, [China] discovered they needed all the tungsten they could produce for their own economy," Marr said. "We expect a shortage in the next 10 years for tungsten and Sisson Brook could help that."

The project is to includethe mine, stockpile areas, a freshwater supply, a sewage treatment facility and a fuel-handling facility.

According to thegovernment'srelease, the site preparation would include tree clearing, development of on-site roads, camp construction and installation of a permanent power supply.

The department said the environmental assessment would identify potential environmental impacts associated with development proposals as well as methods to avoid or minimize any negative effects.

"The public will have the opportunity to learn more about the project and voice their opinion at different stages in the process," Environment Minister Roland Hach said in a release.

Marr said the reaction to the mine's construction has been mixed, with local mayors backing the plan.

"It will provide a lot of jobs during the construction and a lot of jobs during the mine. This mine could be in business for 20 or 25 years," Marr said.

"There have been concerned by environmentalists about the development. We are doing a lot of environmental work to assess the impact on the environment."