Sabina formally commits to building C$610m Nunavut mine
Thursday, September 8th, 2022
Sabina says all major equipment and materials required for construction have been either procured, marshalled at its east and west transportation hubs, have been delivered or are in transit to the Port Facility in Bathurst Inlet, Nunavut.
“This is a milestone decision for the company,” commented president and CEO Bruce McLeod.
He reported that Sabina had been fortunate that its strategy of preplanning and accelerating procurement efforts had reduced its exposure to inflationary impacts and supply chain issues, and that the company was sufficiently funded for construction.
“This is an exciting time for the company as we move to develop what we believe will be the first mine on this prolific gold district,” he said.
Of the C$610-million capital expenditure estimated, about C$218-million was identified as direct equipment and materials purchases.
Sabina has procured, or has committed agreements to procure, just over 75% of these identified purchases. Reconciliation on purchases have seen an average overall inflationary escalation of 14% since March of 2021, with a 20% escalation on the purchases made in 2022. Sabina states that it continues to monitor, with a strategy of pre-planning and accelerating procurement efforts to reduce exposure to inflationary impacts. Efforts now focus on securing the remaining 25% of materials required.
The company has also successfully increased its human-resources team, from 30 full-time employees in March to 142 currently.
ALTERNATIVE ENERGY INITIATIVE
Meanwhile, Sabina has submitted a regulatory package to the Nunavut Planning Commission and the Nunavut Impact Review Board focused on the advancement of the Back River Alternate Energy Center. This proposal could allow Sabina to install up to 13 wind turbines, each with a power capacity of up to 4.5 MW, a solar panel array with a power capacity of 5 MW and a battery storage system with a capacity of 50 MWh.
If approved and constructed the Back River Alternate Energy Center will significantly reduce project greenhouse gases emissions, reduce traffic on the winter ice road, and reduce the number of ships required.