regulatory capture

There’s a 21st century gold rush starting in Nova Scotia on Canada’s Atlantic coast, just as industrial gold mining is increasingly coming into disrepute around the world. It has been described as an “environmental disaster,” which often leads to contamination of water sources on which life depends. This is the second in a series of four articles on mining and quarrying in Nova Scotia. Earlier versions of these articles appeared in May and June 2018 in the Halifax Examiner and the Cape Breton Spectator.

Part 2. Going for gold

Screenshot of BNN interview of Atlantic Gold CEO Steven Dean (left) at the 2018 Prospectors and Developers Association of Canada (PDAC) convention.

The CEO and chairman of Vancouver-based Atlantic Gold Corporation, Steven Dean, a man with a history of international coal and metal mining and former president of Teck Cominco, was being interviewed by Andrew Bell of the Business News Network (BNN).[1] Dean was talking up his company’s first gold mine, named Touquoy after a French miner who worked the deposit in the late 1800s, which had just gone into production in Moose River, Nova Scotia.

The interview was held at an ideal venue for Atlantic Gold to showcase its new open-pit gold mine, the first ever in Nova Scotia: the 2018 convention of the Prospectors and Developers Association (PDAC) of Canada in Toronto, the global mining industry’s “event of choice.”

Bell expressed amazement at the low cost – $550 – of producing an ounce of gold at the Touquoy mine. Dean told him the mine would produce about 90,000 ounces a year which, at current gold prices, would make it a “profitable mine” with about $90 million in “operating cash flow.” And, said Dean, Atlantic Gold planned to enter its second phase of operations by 2022, with more mines operating in the area, producing a total of 200,000 ounces a year. Continue reading Fool’s gold: the resource curse strikes Nova Scotia (Part 2)

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There’s a 21st century gold rush starting in Nova Scotia on Canada’s Atlantic coast, just as industrial gold mining is increasingly coming into disrepute around the world. It has been described as an “environmental disaster,” which often leads to contamination of water sources on which life depends. This is the first in a series of four articles on mining and quarrying in Nova Scotia. Earlier versions of these articles appeared in May and June 2018 in the Halifax Examiner and the Cape Breton Spectator.

Part 1. Welcome to the gold rush

Atlantic Gold’s open pit gold mine in Moose River, Nova Scotia, one of four the company has planned, and one of six proposed for the province’s Eastern Shore. Photo: Joan Baxter

In October 2017, Vancouver-based Atlantic Gold opened Nova Scotia’s very first open pit gold mine, one of four it has planned for the province. The Touquoy mine, about 100 kilometres from Halifax, is named after French miner Damas Touquoy, who first worked the Moose River deposit back in the late 1800s.[1]

Officiating at the opening ceremony, and energetically applauding the cutting of the ribbon, was Nova Scotia’s Minister of Transport and Infrastructure Renewal, Lloyd Hines.

Years earlier, Premier Darrell Dexter’s NDP government in the province gave the mine a helping hand when then minister of natural resources, Charlie Parker, issued a vesting order allowing the mining company to expropriate land that had been in the Higgins family for 120 years.

It looks as if Nova Scotia, where small-scale, underground gold mining persisted from the mid-1800s until the 1940s, is once again pinning a good part of its future on gold. Continue reading Fool’s gold: the resource curse strikes Nova Scotia (Part 1)

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