GOLD Fields said on Monday it had been awarded an environmental permit for its $1.9bn Windfall project in Canada’s Québec.
“We will now focus on finalising our execution plan and moving Windfall towards construction,” said Mike Fraser, Gold Fields CEO, who described the development as a milestone for the gold miner.
Windfall is scoped to produce an average of 300,000 ounces of gold a year over the first 10 to 12 years of its operating life. But it also has district-scale potential. In addition to the deposit Gold Fields intends to work on, the group holds a land package of approximately 2,500 km² in the Urban-Barry and Quévillon areas.
Authorisation of Gold Fields’ Environmental Impact Assessment (EIA), in gestation for more than three years, was granted by a number of organisations led by Québec’s Ministry [of the Environment?] on October 30. It gives the green light to construction and full project development. Gold Fields said it would now take the project to its board for an investment decision.
An updated construction schedule, along with the capital estimate for development of Windfall and an update on mineral resources and mineral reserves, would be published in February, the group said.
In the meantime, work would begin on remobilising construction activities, including underground, which had been paused after the expiry of the bulk-sample exploration permit at the end of August. “Early civil works and construction of camp facilities within the approved mandate awarded to Windfall from the board of directors will also begin shortly,” said Gold Fields.
Approval of the EIA follows an agreement in June with the Cree First Nation of Waswanipi for an Impact and Benefit Agreement. It is the Cree who own and operate the hydroelectricity line that will supply most of Windfall’s power needs.
“The Uukiimau (Cree) Agreement and the Certificate of Authorisation demonstrate how responsible mining can be advanced through respect, transparency and shared value creation,” said Fraser.
The award of the permit comes at a time when Gold Fields is deep in negotiations for the A$36bn ($25bn) takeover of ASX-listed Northern Star Resources. Citing Northern Star’s newly appointed CEO Suresh Vadnagra, the Australian Financial Review said the Australian miner is open to negotiations with Gold Fields if it sweetens the offer.
As a result, this is a major fillip for Gold Fields as it presents itself as a viable partner for Northern Star Resources’ Australian mines. There is, however, no sign of any agreement with the Ghanaian authorities in terms of a renewal of the mining licence for Tarkwa, the 425,000 to 540,000 oz/year cornerstone asset.