COCHRANE HILL — A plan for an open pit gold mine near Cochrane Hill in the Municipality of the District of St. Mary’s is effectively on hold until there’s “a fair and efficient process” from the provincial government, according to the head of Perth, Australia-based mineral exploration and extraction company St Barbara Limited.
In an emailed statement to The Journal Aug. 24, company Managing Director and CEO Andrew Strelein said a legal dispute with the Department of Environment and Climate Change over the reclamation of its now defunct Touquoy mine near Musquodoboit is clouding prospects for its other development fields in the province.
“[St Barbara subsidiary] Atlantic Mining remains dedicated to present and future operations in the province, from reclaiming the Touquoy site to advancing the 15-Mile [near Sheet Harbour] and Cochrane Hill [near Sherbrooke] gold projects for the economic benefit of rural Nova Scotians.”
However, he said, “The [Reclamation] Industrial Approval from the Department of Environment and Climate Change [NSECC] for Touquoy [contains] unrealistic dates and standards that are objectively impossible to meet and unnecessary for prevention of any environmental harm. We haven’t been able to make progress with the department on this.”
He added: “For 15-Mile and Cochrane Hill, we do intend to proceed with those projects but won’t be moving forward with approvals until we feel like there will be a fair and efficient process.”
In a recent statement to investors posted on its website, the company confirmed that “given the... continuing difficulties encountered by its subsidiary Atlantic Mining Nova Scotia [AMNS] with the NSECC, the company decided not to ramp up preparation for revised environmental approval submissions for the 15-Mile Project at this time,” adding: “However, during Q4, community consultations continued in Nova Scotia, and environmental baselines and documentation of work to date was undertaken.”
AMNS headed to court earlier this month to formally appeal a decision by NSECC Minister Timothy Halman requiring specific measures – that that the company argued were extreme and unnecessary – for reclaiming the land and waters under and around the Touquoy mine, which has been closed since late last year.
It also objected to certain restrictions limiting its use of a $40-million chunk of the reclamation bond it posted with the province (the remaining $40 million of which it’s obliged to guarantee next month) to clean up the site.
In documents filed with the Supreme Court of Nova Scotia on Aug. 14, AMNS stated that Halman “ignored the exhaustive reclamation work plan, supported by expert evidence, and associated timelines submitted by [AMNS],” and that “the unreasonable conclusions of the minister expose AMNS and its directors to prosecution for non-compliances... that are a result of either predictable and non-harmful water quality monitoring events or late filings and submissions against arbitrary and impractical deadlines for tasks.”
Moreover, it said, “contrary to historical best practices, [this decision] restricts [company] discretion” to use portions of a reclamation bond “upon partial completion of reclamation activities” thereby “putting at risk the financing available for the work necessary [and] jeopardizing... closure of the project site.”
In his email to The Journal, Strelein said, “We felt [a court] appeal was our only remaining option.” The province, which does not comment on ongoing legal actions, has not yet filed a formal response.
The Touquoy dispute is the latest in a series of recent developments that have raised questions about the future of St Barbara’s mining plans in the province – including the Cochrane Hill project, which has faced stiff opposition from local community and conservation groups in St. Mary’s since it was first proposed in 2019.
Last August, members of the St. Mary’s River Association and others who live in the area declared victory when the NSECC formally protected 1,700 acres of pristine wetlands and old-growth forest around Archibald Lake – which AMNS had wanted to use as a fresh water supply for the proposed nearby mine – from all forms of extractive industry.
In a statement at the time, Strelein told The Journal that, while St Barbara remained “committed to the development of a gold project at Cochrane Hill,” it would “assess the impact of this decision [to grant] Archibald Lake protected area status. [We] have heard from folks across Nova Scotia who feel that new government protection efforts are creating unexpected barriers and challenges for the industry. The company echoes these concerns and urges the province to reflect on the impact these decision have on the future of the mining industry and the prosperity of rural communities in Nova Scotia.”
AMNS has estimated that the proposed mine could generate millions of dollars in direct and indirect economic benefits for the area, including well-paying jobs for residents.
In the Touquoy appeal, AMNS is asking the court to quash Halman’s reclamation orders pending mediation, or a decision in its favour, and set a date for a formal hearing by the end of November.
