By Divya Rajagopal
TORONTO (Reuters) – An unusually heat winter in Canada this 12 months has delayed the opening of a 400-kilometer (250-mile) ice highway that’s rebuilt yearly as the principle conduit for Rio Tinto (NYSE:), Burgundy Mines , and De Beers to entry their diamond mines within the distant Arctic area.
The Winter Street, which serves the area accessible solely by air for 10 months of the 12 months, opened with a two-week delay in the course of February, disrupting motion of products alongside the ice highway constructed over 64 frozen lakes.
Earlier this week, the Tlicho authorities in Northwest Territories (NWT) restricted motion of business vans for few days in one of many winter roads because of anticipated hotter climate throughout the North Slave Area.
Whereas diamond manufacturing stays unaffected, the delay underscores the challenges that firms face because the mines that make Canada the world’s third largest diamond producer come to the tip of their productive life.
It additionally highlights the infrastructure hurdle for the NWT and Nunavut which might be positioning themselves as the subsequent frontiers within the exploration of important metals, equivalent to uncommon earth, cobalt and lithium, within the transition to a greener future.
The delays in constructing the Winter Street, which first grew to become operational in 1982, have occurred previously, however this 12 months’s is the longest delay in recent times, in accordance with Tom Hoefer, senior advisor to the NWT and Nunavut Chamber of Mines.
“We did begin the highway a bit later consequently,” he mentioned.
Local weather change, pushed by the burning of fossil fuels, coupled with the emergence of the pure El Nino local weather sample, pushed the world into file warmth territory in 2023.
The affect of El Nino this 12 months resulted in Yellowknife, the capital of the NWT, recording a most temperature of zero levels Celsius (32 levels Fahrenheit) in December and minus 8.7 levels Celsius (17.6 F) in February, making it the warmest winter days in a decade, in accordance with knowledge from Surroundings Canada.
The Winter Street opens between late January and early April and requires minimal of 29 inches (74 cm) of ice for automobiles that may carry 26,000 kilograms (57,320 lbs) of gross automobile weight, to move diesel and dynamite required to function the mines.
On hotter days, the engineers have discovered methods to trick nature by creating synthetic ice utilizing big sprinklers to spray water excessive up within the air in order that they cool and kind thick layer of ice after they fall.
Paul Gruner, CEO of the Indigenous company Tlicho Funding Corp & Group of Firms mentioned this 12 months the nice and cozy winter in the beginning and if there’s a hotter finish of the season or an early spring, it might threat an early closure.
“So while you’re nibbling away on either side of that, you begin to create a really brief season,” Gruner mentioned.
The Winter Street is collectively operated by Burgundy Diamond Mines, Rio Tinto and De Beers of Anglo American (JO:) group which run the Ekati, Diavik and Gahcho Kue diamond mines respectively.
De Beers and Burgundy Diamonds mentioned operations at their mines haven’t been affected by the gentle winter. Rio Tinto declined remark.
The Winter Street prices C$25 million ($18.54 million) to function for 2 months, which is shared by the three firms primarily based on items transported on the highway and distance traveled.
Nevertheless, the mines have a operational lifetime of round 20 years and as they attain the tip of life, they should be shut down.
Rio Tinto has mentioned it’s going to shut the Diavik mine in 2026 and De Beers plans to close Snap Lake finish of this 12 months, whereas searching for to increase the lifetime of Gahcho Kue.
CHICKEN AND EGG
Canada’s distant Arctic area, residence to round 86,000 folks, is dealing with the whole closure of all of the diamond mines by 2030 and is in search of methods to maintain mining alive.
The dearth of infrastructure is a problem and the shortened seasonal use of the ice highway might harm investments wanted to mine important minerals.
“If you happen to’re within the exploration section … and taking a look at utilizing the winter highway as a part of your core enterprise mannequin, the dangers begin to come into … your choice making whether or not or to not advance a challenge,” Tlicho Funding’s Gruner mentioned.
Hoefer of NWT and Nunavut Chamber of Mines mentioned the 2 Northern territories, that are as massive as Europe, have the best infrastructure deficits in Canada – one of many causes for the very excessive prices of dwelling and doing enterprise within the North.
“It’s a chicken-and-egg scenario, the mining firms most likely will not come except there’s some infrastructure, it is simply too costly,” mentioned Heather Exner-Pirot, director of Power, Pure Assets and Surroundings program at Macdonald-Laurier Institute.
It prices C$3 million a kilometer to construct gravel roads, Pirot mentioned.
Mining teams are pushing for a mega infrastructure challenge that connects NWT to Nunavut that runs by the diamond mines might assist unlock the mineral riches within the area. At the very least 23 of the 31 important minerals listed by the Canadian authorities is discovered within the NWT.
“When the challenge comes up, it could change the roads which have served mining for 40 years, however till that occurs, the ice roads are required,” Hoefer mentioned.
($1 = 1.3483 Canadian {dollars})
