Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
The Nova Scotia subsidiary of Australia’s St Barbara (SBM:ASX) says the province has agreed to accept the remaining C$38.7 million of a bond by the end of the month for cleaning up the closed Touquoy gold mine.
The company, Atlantic Mining Nova Scotia, was originally given until Sept. 3 to pay the full C$79.9 million bond amount. It is appealing in provincial court the timelines of a clean-up order from the Ministry of the Environment and Climate Change. The bond’s amount isn’t an issue, CEO Andrew Strelein said on Friday.
“Should we be unsuccessful in this appeal, we will then proceed to further appeals,” Strelein told The Northern Miner. “We are fully committed to completing this project in a timely and responsible manner.”
Atlantic contends the provincial deadline for achieving water quality standards around the mine in Moose River, about 175 km west of Halifax, is unreasonable and could expose the company to potential legal issues. A directions hearing for these appeals is set for November. The company and environmentalists are concerned the ruling could set a precedent for mine cleanups in the region, not just Torquoy. Atlantic operated it from 2017 to 2023.
Strelein disputed claims by the Minister of Environment and Climate Change of a three-year delay in reclamation work. He said Atlantic has already invested C$7 million into efforts over the summer. They focused on works at the tailings management facility and clearing several key areas, he said. Independent consultants are finalizing models on lake hydrology and geochemistry, and favourable weather has accelerated progress.
The company’s work is guided by scientific principles, the CEO said. Tailings need to dry and compact over three years before heavy equipment can safely operate. Atlantic Mining’s consultants anticipate that Nova Scotia’s weather might slow the drying process, but monitoring will ensure safe work conditions, he said. Some tasks are already ahead of schedule.
Strelein emphasized the company’s pioneering role in mine reclamation in Nova Scotia. He highlighted the significance of this work for both the environment and future mining operations.
The provincial environment ministry in July struck down Atlantic’s first appeal against the reclamation conditions. It has argued the timelines were based on the company’s submissions and that delay risks the environment.
Conservationists have criticized Atlantic for trying to skirt environmental regulations in the past. The Halifax-based Ecology Action Centre says Atlantic has yet to fulfill a 2008 requirement to fund a natural park beside the former mine. However, the company appears to be taking some steps.
As part of the reclamation, Atlantic Mining is launching a high school competition to design a community space around the future lake at the former mine. Competition materials are being distributed to schools at the start of this school year. Submissions are due by December.
The winning design will earn C$25,000 for the school, with all participants receiving C$1,000. Final designs will be reviewed with a landscape architect to integrate community input into the reclamation plan.
“This competition allows students to contribute to their community’s future, helping shape the space for public use and potentially discovering career paths they hadn’t considered,” Strelein said.
Shares in St Barbara gained A$0.02 on Monday in Sydney to close at A$0.28, valuing the company at A$220.7 million. They’ve traded in a 52-week range of A$0.14 to A$0.32.
