Pine Point Mine Ltd. and Town of Hay River sign agreement in hopes of restarting mining project

The Town of Hay River and Pine Point Mining Limited have signed an agreement with the goal of ensuring that residents and businesses will benefit from future mining operations in the area.

Mayor Kandis Jameson and Jeff Hussey, the CEO of Pine Point Mining Limited signed a memorandum of understanding on Monday. 

The Pine Point lead and zinc mining project is located about 90 kilometres from Hay River. There hasn't been an operational mine at Pine Point in almost four decades, when the former mine and neighbouring community closed down and were abandoned. 

Hussey said the mine has been doing definition drilling since 2018 and now they are engaging with communities before moving on to the assessment and permitting phase.

"That's what we're turning our focus towards, communicating our plans for the development of the project and listening to their feedback as we enter that environmental assessment phase," he said. 

Hussey said they are also negotiating Impact Benefit Agreements with local Indigenous governments including the K'atl'odeeche First Nation, the Northwest Territory Métis Nation, and the Deninu Kųę́ First Nation.

He said these agreements aim to ensure that Indigenous communities will see direct benefits from the mine's development.

"Once we have the permits to start building, that's when I think the local communities will see what I call the ripple effect," he said. "Or the benefits that come off of a development of this nature."

As part of the agreement, Pine Point has also begun a series of town hall meetings aimed at engaging local communities.

The first session was held in Hay River on Tuesday. Similar meetings will be announced soon in Yellowknife, Fort Resolution, and Fort Smith as well as Indigenous communities impacted by the project. Hussey said this is a key milestone in the project.

"We can see the concept of the mine project right now. Now, we have to communicate it and see if everyone agrees to move forward," he said.

'Huge impact'

For Hay River, the partnership represents a valuable opportunity that could bring substantial economic benefits to the community, says Mayor Kandis Jameson. She wants to see the local economy grow while ensuring that community needs and concerns are addressed.

Jameson said that reopening the Pine Point mine would have "a huge impact" on the entire region. One of the most significant outcomes is potential job creation, she said, especially with the looming closure of Diavik and Gahcho Kué's mines.

"Once that mine is operational there, I believe it's 500 [jobs] when they're opening the mine, and 400 full-time staff after. You know, which is huge for Hay River," she said.

Jameson said these positions would make a meaningful difference for residents, providing stable employment and the chance to work closer to home.

"People who were going to be out of a job are seeing light at the end of that tunnel."

She also said that as other mines further north begin to close, the Pine Point project will have "seasoned and experienced workers" looking for local opportunities.

Beyond job creation, Jameson hopes to see increased economic activity across the region. Hay River's proximity to the mine makes it a natural hub for logistics, shipping, and other services, and maybe a potential return of the Canadian National Railway (CN).

Housing challenges, made worse by recent floods and fires will also be an issue, but Jameson said this is the time to start preparing for all of those challenges. The collaboration allows Hay River to plan ahead, ensuring there's adequate housing and infrastructure in place as the mine ramps up its operations, she said. 

"By having that focus, you know, we're ready. Instead of trying to play catch up with stuff that takes years to do."

At the recent town hall meeting in Hay River, Jameson said the turnout was encouraging, and residents expressed curiosity and optimism about the mine's potential. She praised the mining company's commitment to sharing updates and answering important questions.

"If we all work together, hopefully good comes out of it. So yeah, interesting to see how this progresses," she said.