2022-03-31 01:00:00
Twenty-three years after the copper mine in Murdochville, Que., closed down and left the community without its main source of income, a new company is looking to revive the industry whose roots run 70 years deep in the region.
Osisko Metals bought the rights to do some exploration and drilling on the site of the old pit, which is owned by mining giant Glencore Canada, on Friday.
The acquisition came as a surprise to many residents, who have spent the past two decades diversifying the local economy to keep their small town afloat.
Located in the Gaspé peninsula, Murdochville was once a company town that relied solely on mining but now lives off year-round tourism.
Rising metal prices prompts return
Osisko Metals’ CEO Robert Wares said he had been eyeing Gaspé Copper Mine for some time. Wares was aware of the site’s untapped potential, having worked there as a geologist in the ’90s.
When the price of copper spiked to about $4.40 US a pound last summer — up from about $2.40 US a pound in early 2020 — he thought about making a move.
“When commodity prices rise, it gives the opportunity to look at older assets that have been sleeping, sometimes for decades, and re-evaluate them to see if they can be brought into production,” he explained.
Confident that the high copper prices were here to stay, Wares contacted Glencore last July. The two companies reached a conditional agreement after eight months of negotiations.
Osisko Metals has until the end of June to evaluate the economic potential of restarting the old mine, at which point it will have to decide whether to acquire the site.
For Quebec’s mining association president and CEO, Josée Méthot, this project is good news because it will help diversify Quebec’s mining industry and boost the Gaspé region’s economy.
“Copper is one of the critical minerals that will be used in the world energy transition,” she said, adding that the province barely mines or produces it at the moment.
She added that reopening the copper mine would also ensure a constant supply of local copper concentrate for a copper smelter in Rouyn-Noranda and a copper refinery in Montreal.
Some residents fear potential impacts
Félix Rioux, who moved to Murdochville with his family two years ago, had heard rumours about the project, but said the news still came as a surprise to him.
He said he has concerns about the potential disruption and pollution that a new mine could bring.
Rioux works as a marketing director for an outdoor tourism company called Chic-Chac. He said he came to the Gaspé peninsula to enjoy the mountains and nature and wonders whether mining activities could taint that experience.
“For me the main worry is air quality, what will happen about that?” he said. “Will the smelter start up again?”
Rioux acknowledged that a mine could boost the town’s economy, but he said he worries that having such an uptick in activity could disrupt the peaceful feel of the town.
He also noted that many of the town’s infrastructures are old and inadequate for a larger population, and would need renovations. “Will they invest in those things?”
Wares said it was normal for people to ask questions and worry about the potential impacts of mining. But he said the project is still in its infancy and there is a long way to go before any mine actually opens.
“We’re starting the studies now, but we’ve got four years to complete our environmental studies, feasibility, and so on,” he said. “It’s certainly not something that’s going to happen tomorrow.”
He noted that a new mine would create a lot of new jobs and help the region grow.
Murdochville mayor Délisca Ritchie-Roussy, who has been leading the town since 2005, said she was not informed about the acquisition and only learned about it on Monday, after reading a post about it on social media.
She declined the CBC’s request for comment, saying she needed more time to digest the news and get acquainted with the project.