It’s been a long time coming. Marathon mine builder Generation Mining has snagged the last provincial permit that finally clears the regulatory path for construction of its $1-billion copper-palladium open-pit near the north shore of Lake Superior.
The Toronto company said last week that it received the Environmental Compliance Approval for industrial sewage works from the Ontario Ministry of Environment, Conservation and Parks. The permit covers the water management and discharge during the construction phase of the project.
Though the Marathon project is “shovel ready,” Gen Mining has yet to officially make a final construction decision.
The company is still on the hunt to secure all the $961 million in initial capital financing needed to build the mine and its infrastructure.
At last count, the company had lined up close to $800 million through a debt facility and a $200-million gold and platinum streaming deal with Wheaton Precious Metals. Last week, the company said it has a support letter from a leading, but undisclosed, Canadian lender that has interest in providing up to $200 million.
In a news release, president-CEO Jamie Levy said completing the construction permitting was a key objective for 2025. The next task is landing construction financing now that the regulatory process is over.
“With a shovel-ready plan and strong community support, the Marathon Project has the potential to deliver critical minerals, create skilled jobs and strengthen the Canadian supply chain for a more resilient future.”
Levy said the support letter is proof that lenders' interest in the Marathon project remains constant. Discussions continue with other corporate, institutional, retail investors and equity providers to mine financing without diluting their stock. Updates to come, he said.
Generation Mining stock on the TSE ranged between $0.16 and $0.20 for the last six months before doubling last week on the permitting news. The company’s stock price stood at $0.36 as of May 26.
The Marathon project is Gen Mining’s only asset. The main deposit is 10 kilometres north of town on a large 26,000-hectare land package, just off the Trans-Canada Highway. Gen Mining plucked the project from Sibanye-Stillwater in 2019.
In recent years, permitting delays have constantly pushed back the construction start.
Since the first decade of the 2000s, the project — through starts, stops and ownership changes — has undergone an extensive federal and provincial environmental review. An earlier company, Marathon PGM, wanted to start mining in 2011.
Final federal approval was granted last August.
On the provincial side, the permitting process has taken longer than expected. Gen Mining had hoped to land the final permits last fall or early winter with the hope of breaking ground this year.
The Marathon project contains 4 million ounces of palladium, 1.1 billion pounds of copper and 1.3 million ounces of platinum, with other minerals, including gold, in the mix.
The mine life is 13 years.
The economic impact of the mine will be huge for Marathon and communities along the north shore with the promise of 1,200 construction jobs over an 18- to 24-month construction period and 400 full-time jobs when the mine is operational.
