Those of us who follow the Minnesota House Environment and Natural Resources Policy and Finance Committee know that Chair Dan Fabian, R-Roseau, frequently shares envious, anti-environmentalist sentiment centered on a new gold mine across the Canadian border.
Given Fabian's yearning and angst about the if-only-in-Minnesota operation, it's appropriate that the mine is not far from Emo, Ontario.
Unfortunately for the Roseau Republican, the New Gold mine might not be everything he imagines it is (including the permits-don't-slow-it-down part), if a recent news article that appeared in Forum Communications chain newspapers is to be believed.
Or maybe Fabian simply thinks a project that's behind, running so far over budget that the company's non-core assets might be sold, and lacking key permits is a model for Minnesota mining and its regulation.
In the Bemidji Pioneer, John Myers reports in New Gold mine north of MN border running behind schedule, over budget:
An all-new gold mine under development 45 miles northwest of International Falls is running three months behind schedule and $195 million over budget. . . .
The company ran into delays and extra costs last year while trying to obtain permits to operate its tailings basin. The company has moved ahead with primary approval for a smaller waste rock site but still needs additional approvals by regulators for its full-sized tailings basin and other water-related issues. . . .
The company said Monday that it's facing a $100 million funding gap to pay for its operating expenses and to start commercial production at its Rainy River mine in November. New Gold said it was looking at a number of options to plug the shortfall, including selling non-core assets and raising debt or equity.
Rainy River is one of the few mid- to large-scale gold mines being built worldwide as the industry pulled back from developments after gold prices began falling in late 2011. . . .
Heckova a role model for a committee chair to be citing as his touchstone for envy.
Photo: The New Gold mine, from the company's website.
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