Australian owner of N.S. gold projects seeks to sell operations
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St Barbara, the Australian company that operated Nova Scotia’s Touquoy gold mine in Moose River, N.S., has announced its plans to divest its Atlantic operations. The company is open to a “sale, vend-in, or demerger” of its assets in Nova Scotia, including the Fifteen Mile Stream, Beaver Dam, and Cochrane Hill projects, in addition to the Touquoy site. These projects are managed by St Barbara’s subsidiary, Atlantic Mining Nova Scotia.
While the Fifteen Mile Stream, Beaver Dam, and Cochrane Hill projects are still in the development phase and do not currently have permits or environmental assessments, active gold mining at the Touquoy site ceased in January 2023. The company shifted its focus to processing stockpiled rock, but production has not taken place at the site since late September 2023.
St Barbara’s CEO, Andrew Strelein, stated in a news release that the decision to separate Atlantic from the company aims to unlock the full value potential of the Atlantic projects under a Canadian listed entity with a local leadership team. He highlighted the financial strength of the projects, noting their potential for production within 12 months of permitting approval.
Despite the divestment, Atlantic Mining assured that there would be no redundancies or layoffs resulting from the decision. Any new company taking over the operations will also inherit the responsibility for reclamation efforts at the former Touquoy mine, covered by an $80-million bond with the province. The company has already invested over $7 million in reclamation activities.
However, the reclamation process has faced challenges, including an appeal by the company against the criteria set by Environment Minister Tim Halman. The appeal was rejected by the province, leading Atlantic Mining to take the case to the Supreme Court of Nova Scotia.
Critics, such as Karen McKendry from the Ecology Action Centre, have raised concerns about Atlantic Mining’s track record in Nova Scotia. The company faced numerous charges under the Environment Act and was involved in controversial incidents, such as the arrest of a man at a public meeting about a proposed gold mine in 2019. McKendry remains skeptical about the potential new owner’s commitment to environmental protection.
On the other hand, Sean Kirby, the executive director of the Mining Association of Nova Scotia, attributed St Barbara’s decision to exit the province to the challenging permitting process. He emphasized the need to streamline regulations, ensure consistent application of rules based on science, and establish reasonable time frames for permitting to attract investment and create jobs in Nova Scotia.
Kirby acknowledged Atlantic Mining’s contributions to job creation and economic activity in the province and expressed hope that a new owner would continue to develop the proposed gold mines. Atlantic Mining anticipates the separation to take place later this year, marking a new chapter in the Atlantic operations’ trajectory.