N.W.T. shipping study under way (April 06, 1992)

The Northwest Territories has taken another step towards establishing a shipping operation from Coronation Gulf on the Arctic coast by awarding The Canarctic Shipping Company a contract to complete a feasibility study on the proposal.

Funded by a consortium of Canadian mining companies, the federal and territorial governments and native interests, the study is to be completed by the end of 1992.

Access to a port could make development of base metal deposits just south of Coronation Gulf such as Minnova’s Izok Lake project substantially more attractive. Concentrate could then be shipped out to smelters in the Far East and Europe.

Canarctic currently ships concentrates from Conwest Exploration’s (TSE) Nanisivik lead-zinc mine on northern Baffin Island and from Cominco’s (TSE) Polaris mine on Little Cornwallis Island. Its ice-breaking vessel, the MV Arctic, operates for up to six months of the year.

But based on a projected concentrate production of 400,000 tonnes per year starting in 1997, Canarctic says existing vessels, including Russian vessels active in Siberia with 30,000-tonne cargo capacity, are either too old or too small for an operation from Coronation Gulf. The company proposes building at least one ship with a maximum 50,000-tonne cargo capacity.