Frustration mounts over Montcalm.

The Montcalm mine project is making slow progress.

Montcalm project manager for Falconbridge John McDonald says that environmentalist concerns and extensive regulatory requirements has meant slow progress. for the project. The deadline for comments to the Ontario Ministry of Natural Resources (OMNR) on the proposal was May 25, 2003.

"We're hoping to hear word on whether we will receive a permit and we hope it will be within weeks, but that's not guaranteed," he says.

A project overview on Falconbridge's Web site states that the mineral resources are estimated to contain seven million tonnes of indicated mineral resources grading 1.39 per cent nickel, 0.67 per cent copper and 0.06 per cent cobalt. It also indicates there are 700,000 tonnes of inferred resources grading 1.68 per cent nickel, 0.70 per cent copper and 0.07 per cent cobalton the property.

Montcalm has the potential to produce a total of five million tonnes of ore at a rate of 750,000 tonnes annually, the company says.

At issue is a proposed water outflow from a settlement pond of water that would come from the mine. Concerns have been expressed that Falconbridge is asking for a temporary easement for a drainage ditch to the nearby Groundhog River. The property is listed as a potential river park on the Ontario Living Legacy plan.

"What we're seeking is an easement of approximately two hectares from our property to the river for the discharge," says McDonald.

The other option is to set up a water treatment facility on a 22-acre Falconbridge claim property that is across and several kilometres further downstream from the other location. But that would require a pipeline from the mine property across the river.

Falconbridge has offered to accept a temporary easement in which a drainage ditch would be built across the parkland property. In exchange, the company has said it is willing to hand over the 22 acres to the province and, in addition, would handle full restoration of the property once the mine is finished, and it would revert back to the province.

The mine has an expected life span of about eight years, he says.

"The main concern of those who are opposed to this is the idea of transferring boundaries like this," says McDonald. "They are concerned about the precedent it would set."

McDonald says that environmentalists also are concerned about the contents of the water going into the river, but adds that there is no reason for concern since the water will be going through a multi-stage treatment process that will result in clean water going into the Groundhog. In addition, the outflow, once dug, will soon blend into the scenery and be completely unobtrusive to the area landscape.

A section of the Groundhog River near the mine is a habitat for spawning sturgeon.

Brennain Lloyd, co-ordinator of environmental organization Northwatch, says concerns with the proposal start at what will be leaving the Montcalm water treatment system and include the boundary issues.

"In my view, they're linked," she says.

"Our concern is that the mine might be much more acidic than Falconbridge has predicted and, therefore, much more toxic," she says. "Then, when you add that the mine effluent will be sent into the Groundhog River and through a protected area, I don't know if that's adding insult to injury or injury to injury. It makes it much that much less acceptable and provides an even greater contrast of how that particular part of the land should be protected."

Lloyd says her organization would like to see Falconbridge go back to the drawing board and come up with a solution for treating the mine effluent that does not involve discharge into the Groundhog River.

Timmins Mayor Jamie Lim says there is a great deal of frustration over the delay of the project, which could create 145 jobs.

"It's been very frustrating to see a mining company spend almost two years frying to get a permit to open a new mine in Ontario," she says. "In the Smart Growth document, we made one of our action items to recognize northeastern Ontario as a centre of excellence for mining."

Lim adds the province, the federal government and the private sector have invested $12.5 million dollars in Discover Abitibi, a project that utilizes the latest technology for a new type of exploration for the mineral resources.

"We've always said we're sitting on top of a treasure chest," says Lim.

She says that a letter from the city to Ontario's Natural Resources Minister Jerry Ouellette states that Ontario is one of the best locations in the world for mineral sector investment. Lim adds, however, that it is an industry that is held back by reams of red tape.

The danger of too many restrictions on the industry, she says, is they serve as a disincentive to invest in Ontario.

"So, on one hand, we're spending money on exploration because we recognize that we're sitting on a one of the best jurisdictions for mineral sector investment; we consider Ontario one of the best places in the world to do mining, and exploration leads to discovery of a viable mine like Montcalm. But, when it comes to giving them a permit, it takes over two years. That's not acceptable," she says. "You can't tell the world you're No. 1 in mining and then create red tape like that. It's unacceptable."

She says the company has met the environmental criteria and "its time to move on".

"I think its important for myself and community leaders in Northern Ontario to share who the industry is today and share it with as many decision makers as possible," Lim adds.

www.city.timmins.on.ca

www.falconbridge.com

www.northwatch.org