The construction of a natural gas pipeline to Red Lake is being supported with a $2.7 million investment by FedNor.
Kenora MPP Greg Rickford and FedNor Minister Tony Clement made a stop in the historic northwestern Ontario gold mining town to make the announcement on June 22.
The money is earmarked for the engineering, design and construction costs to extend a natural gas pipeline from the Griffith mine site, near Ear Falls, to the Goldcorp mines at Red Lake.
The two-phase project is delivering natural gas to Red Lake for the first time. The first of the two phases, which will be operational this fall, was driven by Goldcorp to serve its expanding mine complex. Construction of a second phase is underway.
“Thanks to this FedNor support, the pipeline extension project – a community priority since 1999 – has become a reality,” said Phil Vinet, mayor of Red Lake. “This is a win-win situation that will result in cost savings for local businesses, create an estimated 120 jobs and generate new opportunities for businesses throughout the region.”
More than 180 local businesses are expected to be connected within the first five years.
In an interview with Northern Ontario Business, Bill Greenway, Red Lake's economic development officer, said having this connection delivers huge advantages for business in the community by freeing up five to 10 megawatts of much-needed power for local industry if residents convert from electric heating to gas.
Red Lake is facing a power crisis with three gold mines scheduled to begin operation over the next five years, and the Ontario Power Authority still undecided on how to address its power transmission problems in the northwest.
