A $20-million, three-party, cost-sharing initiative between Vale, QuadraFNX and the city will result in a major upgrade for Municipal Road 4 near the Whitefish First Nation.
QaudraFNX Mining Ltd. is currently in a feasibility phase to determine whether it’s profitable to establish a new mine located about 32 km south of Sudbury. The Victoria project would yield about 12.5 million tons of ore over its lifespan, with about two per cent of copper and two per cent of nickel comprising that total, Pat Lewis, manager of business relations for Quadra, said during a presentation to the city’s policy committee. The Victoria project is the “most significant discovery in the Sudbury basin in quite a while,” he added. It is expected to generate about $750 million.
Right now, Quadra is in what Lewis classified as a “grassroots” exploration stage. There are diamond drills in the area, and the next stage will be to put in place the infrastructure to gain better access to the area and determine a feasibility study going forward. It will take between five and seven years before it is in full production.
To make that happen, the road leading into the site needs a major overhaul. Quadra representatives have been in discussions with the city and Vale representatives for about a year to hammer out a deal to share the cost of that work.
Greg Clausen, manager of infrastructure services for the city, said discussion are at a point where all parties are in agreement, and the next move is to develop a draft agreement. Once all parties are satisfied with the agreement, it will be brought before council for approval. Clausen said he anticipates that will happen sometime in November.
The road project would be done in two phases. The first phase will see work done from Highway 17 to Totten mine, while the second phase will see the rest of the work completed to the Victoria site.
Vale has already started working on their end of the project, and they will have a design in place by January, Clausen said. The plan is to have the road constructed by end of 2012. As it stands right now, both Vale and Quadra would have to abide by load restrictions during several months of the year, as set in the city’s bylaws, but the new road would eliminate the need for half-load limits.
“The road needs to be upgraded to ensure a sustainable operation, and there are safety issues with certain parts of the road (as it is),” Lewis said. “We don’t expect the city to spend the $15-20 million needed to upgrade the roads, and part of that responsibility should fall on us. That’s the way we want to move forward and work with the city.”
Ward 2 Coun. Jacques Barbeau said the city is also working with other businesses in the area of Range Road 4 to help cover the costs, because the city can’t expect all of work to be on the backs of taxpayers. He commended Quadra for the work it is doing to placate all who have a vested interest in the area.
“You have exceeded expectations,” Barbeau told Lewis. “(Quadra) has met every request put to (it), and it takes the pressure off council when a company like Quadra is in our community. This road is in horrendous shape, and the pending increase in traffic (from a new mine) would have taken a further tole on it.”
Quadra is currently the third largest mining company in Sudbury. It was formed through the merger of two companies about a year ago. It currently employes about 700 people directly and indirectly.
Posted by Jenny Jelen
