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Mine closures pick up speed in Canada as coronavirus restrictions mount

Mine closures in Canada accelerated in recent days as mining companies responded to a patchwork of provincial emergency measures and growing risks to workers and local communities amid the coronavirus pandemic.

"The decisions are really different depending on where you are," Mining Association of Canada President Pierre Gratton said in an interview. One key factor companies are taking into account in closing mines is their proximity to vulnerable communities, in particular remote First Nations where access to medical services and transportation may be limited, according to Gratton.

Quebec, one of Canada's more important mining provinces, has taken some of the most forceful action, ordering all nonessential services to close until April 13. Quebec operations that have gone on care and maintenance include Yamana Gold Inc. and Agnico Eagle Mines Ltd.'s Canadian Malartic gold mine, Newmont Corp.'s Eleonore gold mine and Wesdome Gold Mines Ltd.'s Kiena gold project.

Requirements in other provinces have given miners more flexibility in assessing closures. In Ontario, a top gold producer, the government ordered all nonessential businesses to close but included mining on a list of sectors it considered essential. Still, some miners in Ontario have chosen to pull back on production, including New Gold Inc. citing its proximity to the U.S. border in temporarily suspending the Rainy River gold mine.

"Approximately 70% of the workforce of the Rainy River mine is made up of local residents and making frequent short trips across the border to the local Minnesota communities is a common practice in the region," New Gold said in a March 20 news release. "A significant number of employees have voluntarily indicated that they have recently made such trips and are now in self-isolation, following the guidance of the Canadian and Ontario governments with respect to COVID-19."

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Teck Resources Ltd., which has significant metallurgical coal operations in western Canada, said it would reduce work crews across all British Columbia and Alberta operations by up to 50% for an initial two-week period. The company flagged the Elkview, Fording River, Greenhills and Line Creek coal mines and the Highland Valley copper mine in British Columbia as well as the Cardinal River coal mine in Alberta in a March 23 statement.

Major uranium miner Cameco Corp. said it would suspend operations at its Cigar Lake uranium mine in Saskatchewan, while Vale suspended operations at its Voisey's Bay nickel mine in Newfoundland and Labrador, and Agnico-Eagle ramped down production at its Meadowbank gold mine in Nunavut.

As the coronavirus crisis unfolds, Canada has restricted international travel but has stopped short of declaring a federal emergency with provinces taking the lead and announcing a patchwork of emergency measures to help contain or slow the spread of the virus.

"There are many things that are being done and can be done at the local level, at the municipal level and at the provincial level," Canadian Prime Minister Justin Trudeau said during a March 22 press conference. "The federal Emergencies Act is a significant step that can and should be taken when we've exhausted all other steps."

Provinces have advised against nonessential travel, limited the size of groups that may congregate and in some cases put restrictions on inter-provincial travel.

With Canada recommending people avoid nonessential travel and some provinces imposing restrictions, it will be increasingly difficult for the mining sector to meet certain regulatory obligations, such as reporting activities from mine sites. "That may be impossible to carry out right now because it requires field work and you can't get to the field," Gratton noted.

The same issue is also true for other key activities like consultations with First Nations, and other communities, over proposed projects undergoing permitting subject to hard deadlines. But Gratton expects the government may have to make exceptions for miners that may be affected by restrictions, with a swath of industry across the country facing similar issues.

"There are certain things that are going to have to give in the system, but the government is aware of them," Gratton said.