TORONTO—A Canadian gold producer is going above and beyond new government regulations, committing its $40-million closure obligation for a new Quebec mine before operations there even get underway.
Quebec’s Natural Resources Minister Martine Ouellet lauded Goldcorp Inc. after the Vancouver-based firm announced it secured a $40.1-million bond to cover 100 per cent of the closure obligation at its Eleonore mine months before crews begin extracting gold from the site in northern Quebec.
“I salute Goldcorp’s willingness to pay the entire $40-million financial guarantee for restoration of the site,” Ouellet said in a statement.
“This goes beyond the requirements of the new rule, adopted (in August) 2013 which requires the guarantee to be paid in full over a two-year period.”
The Eleonore mine is set to begin production this fall.
Estimated 2014 production is between 40,000 and 60,000 ounces, and average annual output is expected to reach 600,000 ounces once the mine reaches full production.
Gold reserves at the site located roughly 900 kilometres north of Quebec City are estimated at four million ounces.
The company plans to deposit the obligation bond for the restoration of the site at the end of its life, which is expected to come in 2034.