Environmental hurdles have placed the reopening of Kearney graphite mine, one of only two graphite mines in North America, on hold. The mine, located just north of Muskoka, has not been in production for the past eight years, but an official with the company that owns the mine - International Graphite - is hopeful enough investor interest will be garnered to resolve environmental issues and bring the mine into production.
The open-pit mine operated with a profit up until the mid-1990s until production came to a standstill and the mine was sold, with little interest in the property until International Graphite purchased the mine in 1999. In the mid-1990s, the Ministry of Environment (MOE) had been preparing a work order on the mine. Upon acquiring the mine, International Graphite began remedial work on the property, bringing elevated zinc and acid levels in nearby Graphite Lake back to normal. But the MOE proceeded to issue the work order, causing potential investors to shy away from the property, a company official says.
Original studies on the property show the graphite ore deposit contains only 2.5 per cent iron sulphide, as compared to 12 per cent in a base-metal operation. The mine is said to have about 25 million tonnes of high-quality ore deposits that would require 25 years to mine.
Company officials predict the mine, if brought into production, could create 70 full-time jobs in the area.
