A company that hopes to establish an open pit nickel mine about 100 kilometres north of Grand Rapids has signed a memorandum of understanding (MOU) with Norway House Cree Nation (NHCN).
The signing of the MOU with NHCN will allow the Minago nickel project to move forward, says Flying Nickel Mining Corporation, a wholly owned spinoff of Silver Elephant Mining Corp.
Silver Elephant bought the property from former owners Victory Nickel last year.
The MOU outlines the terms and conditions that form the basis of a relationship and impact benefits agreement with NHCN and with other First Nations in the area. Victory Nickel signed a memorandum of understanding with Misipawistik Cree Nation at Grand Rapids, Mosakahiken Cree Nation at Moose Lake and Pimicikamak Cree Nation at Cross Lake in 2007 and Flying Nickel says on its website that it is re-engaging with the First Nations to work toward renewal of that MOU.
Located near Highway 6 and a Manitoba Hydro transmission line as well as the Hudson Bay Railway line, the Minago project could produce as much at 37.5 million pounds of nickel per year once operational, Flying Nickel says.
The MOU identifies NHCN and other First Nations as the company’s first choice suppliers for employment, goods and services estimated at $100 million per year and there is potential for First Nations to earn $40 million or more over 10 years.
“The nation is committed to principles of economic sustainability, environmental stewardship, and self-determination that respects the NHCN Resource Management Area and its resources,” said Chief Larson Anderson of NHCN, which is also working with the federal government to add to their reserve lands near Minago to facilitate economic development. “Working with forward looking councillors has enabled our nation to establish a cooperative and mutually respectful long-term relationship with Flying Nickel Mining in keeping with the principles outlined in this MOU.”
Flying Nickel says it is committed to environmentally responsible exploration and development and that the mine will create over 100 jobs during the early development phase and up to 450 jobs once it become fully operational.
NHCN hopes to work with the provincial government to establish a training program to match its members with training opportunities to meet the project’s employment needs.
Flying Nickel and NHCN have agreed to collaborate on the development of a limestone quarry project at the site to make use of low carbon dioxide dolomite, which will be a byproduct of the mining. They estimate that the jointly owned operation could produce up to 11 million tonnes of limestone per year and have a 10-year earning potential of approximately $450 million for NHCN while also providing low-emission cement for the Manitoba and Saskatchewan markets.
The nickel project still has an Environment Act Licence from 2011 that will be valid once a 2014 notice of alteration to the waste rock management tailings facility is complete. Flying Nickel is hoping to obtain financing and complete construction from 2023 to 2025 and then begin producing nickel concentrate in 2026. The company believes there could be more than a billion pounds of nickel-containing resources in the area, more than a third of which are accessible via open pit mining.
