Chinese Companies Invest in Yukon Mining Venture
Area Development Online Research Desk (Location Canada 2009)
It was a combination of the right project, the right time, and the right investment. The result is a new mine in Yukon with construction starting this year and production scheduled to begin in 2010.
Last year, two Chinese mining exploration and development companies, Jinduicheng Molybdenum Group and Northwest Nonferrous International Investment Company, purchased Yukon Zinc Corporation's Wolverine Project for approximately $100 million.
"Our Wolverine project in southeast Yukon was at an advanced exploration stage," says Yukon Zinc Vice President of Environment and Community Affairs Pamela Ladyman. "We had completed feasibility studies and preliminary design and obtained environmental permits. To take the project to completion, we needed a joint venture or financing. Yukon Economic Development had done considerable work in China in past years to develop potential partnerships and our project turned out to be an excellent opportunity for these two Chinese companies to enter the North American mining market."
The cost of constructing the zinc/silver/copper/lead/gold mine is estimated at $200 million. Yukon will see significant economic spinoffs, including employment opportunities, contracts, royalties, and taxes. Jobs are expected to exceed 250 during construction and 150 during production.
This project will have focused benefits for the communities of Ross River and Watson Lake and the First Nations in whose traditional territory the mine will be located. A socio-economic agreement with the Kaska First Nations will help them reap long-term benefits such as training, jobs, and contracts.
For more information, visit www.yukonzinc.com.