Divya Rajagopal
TORONTO (Reuters) – An unusually warm winter in Canada this year has delayed the opening of the 400-kilometer (250-mile) ice road that is rebuilt each year as a major route for Rio Tinto (NYSE:), Burgundy Mines and De Beers to gain access to its diamond mines in the remote Arctic region.
The winter road, which serves a region accessible only by air for 10 months of the year, opened with a two-week delay in mid-February, disrupting cargo movement on the ice road built on 64 frozen lakes.
Earlier this week, the Tlicho government in the Northwest Territories (NWT) restricted commercial truck traffic on one of its winter roads for several days due to expected warmer weather in the Northern Slave Region.
While diamond production remains unchanged, the delay highlights the challenges companies face as the mines that make Canada the world’s third-largest diamond producer reach the end of their productive lives.
It also highlights the infrastructure hurdles for the NWT and Nunavut, which are positioning themselves as the next frontiers in exploration for critical metals such as rare earths, cobalt and lithium in the transition to a greener future.
Delays in construction of the Winter Road, which first came online in 1982, have occurred in the past, but this year’s delay is the longest in recent years, according to Tom Hofer, senior adviser to the NWT and the Nunavut Chamber of Mines.
“As a result, we started the road a little later,” he said.
Climate change caused by the burning of fossil fuels, combined with the emergence of the natural El Niño climate pattern, has left the world in record heatwave territory in 2023.
As a result of this year’s El Niño, Yellowknife, the NWT’s capital, recorded maximum temperatures of zero degrees Celsius (32 degrees F) in December and minus 8.7 degrees Celsius (17.6 F) in February, making This day is the warmest winter day. over ten years, according to Environment Canada.
The winter road opens from late January to early April, and vehicles that can carry 26,000 kg (57,320 lb) gross weight require a minimum of 29 inches (74 cm) of ice to carry diesel fuel and dynamite needed for mine work .
On warm days, engineers have found ways to trick nature by creating artificial ice using giant sprinklers that spray water high into the air so that it cools and forms a thick layer of ice as it falls.
Paul Gruner, CEO of the Tlicho Investment Corp & Group of Companies First Nation, said the winter is warm to begin with this year, and if a warmer end of the season or early spring arrives, there could be a risk of early closures.
“So when you take away both sides, you start to create a very short season,” Gruner said.
Winter Road is jointly operated by Burgundy Diamond Mines, Rio Tinto and De Beers of the Anglo American group (JO:), which operates the Ekati, Diavik and Gacho Kue diamond mines respectively.
De Beers and Burgundy Diamonds said the mild winter had not affected operations at their mines. Rio Tinto declined to comment.
Operating the Winter Road for two months costs 25 million Canadian dollars ($18.54 million), which is divided between three companies depending on the goods transported along the road and the distance traveled.
However, the mines have a lifespan of about 20 years and must be closed as they are used up.
Rio Tinto has said it will close the Diavik mine in 2026, while De Beers plans to close Snap Lake later this year while seeking to extend the life of Gacho Kue.
CHICKEN AND EGG
Canada’s remote Arctic region, home to about 86,000 people, faces the complete closure of all diamond mines by 2030 and is looking for ways to maintain production.
Lack of infrastructure is a problem, and reduced seasonal use of the ice road could harm the investment needed to extract critical minerals.
“If you are in the exploration phase… and considering using a winter road as part of your core business model, risks start to arise… when deciding whether to move forward with a project or not,” says Tlicho Investment. – Gruner said.
Hefer of the NWT and Nunavut Chamber of Mines said the two northern territories, which are comparable in size to Europe, have the highest infrastructure deficits in Canada, which is one reason the cost of living and doing business in the North is very high.
“It’s a chicken and egg situation. Mining companies probably won’t come unless there’s some infrastructure, it’s too expensive,” said Heather Exner-Piro, director of the energy, natural resources and environment program at Macdonald-Laurier. Institute.
Construction of gravel roads costs C$3 million per kilometer, Pirot said.
Mining groups are pushing for a mega-infrastructure project that would connect the NWT to Nunavut and pass through diamond mines, which could help unlock the region’s mineral wealth. At least 23 of the 31 critical mineral resources listed by the Canadian government are located in the NWT.
“When the project comes along, it will replace the roads that have served the mining industry for 40 years, but until that happens, ice roads will be needed,” Hefer said.
($1 = 1.3483 Canadian dollars)