Fire closes Cassiar mill

Cassiar Magnesium (CIR-T) has suspended production of chrysotile fibre products at its mill in Cassiar, B.C., because of fire damage.

The full extent of the damage is not yet known and the company does not know when operations will resume.

Cassiar acquired the former producer after a previous operator went bankrupt. The fibre plant was rehabilitated late last year, and sales are now being made to customers in India, Iran, Dubai, Japan, Sri Lanka, Indonesia and Thailand. All feed materials for production of chrysotile fibres are taken from existing surface stockpiles of fibre containing serpentine.

Production at the plant began in 1953. In 1982, the plant was fully modernized and expanded to a capacity of 100,000 tonnes of fibre annually. Operations ceased in 1992 after the open pit was exhausted. In 1993, Cassiar acquired the property and refurbished it for the commercial production of 30,000 tonnes per year. The plant reached full production in the last quarter of 2000.

The properties contain 3.5 million tonnes of extractable chrysotile fibre resources. Stockpiles of fibre are contained in 6 million tonnes of primary ore materials in surface stockpiles and some 17 million tonnes of serpentine tailings, which grade between 3 and 4% chrysotile. The mine also hosts a resource of 32 million tonnes grading up to 10% chrysotile. The tailings, surface and mine ore all contain 23.5% magnesium metal.

The mill facility is insured for $40 million.

Meanwhile, Cassiar Magnesium is developing surface stockpiles of magnesium resources, which total 20 million tonnes of serpentine mineral containing 3.6 million tonnes of magnesium metal and 750,000 tonnes of high-grade magnesium silicate chrysotile fibres. These resources will support a magnesium metal plant production of 70,000 to 90,000 tonnes of magnesium metal annually for 50 years, and chrysotile fibre production at the planned rate of 40,000-50,000 tonnes annually for 15 years.

The company plans to develop and construct a large-scale magnesium production plant in northern British Columbia as a “cornerstone” of its new business program and plan. The separation of chrysotile fibre from the serpentine would be the first stage of the larger magnesium metal project.

The proposed plant would have an annual capacity of up to 90,000 tonnes of magnesium metal. Capital costs are estimated at US$600 million. Production could begin by 2003 or 2004.