Mining
The potential of the
mining industry remains mostly buried because of limited markets and extraction costs -
conditions that will eventually be corrected. The single largest potential
source of mineral riches is the Moose River Basin just north of Kapuskasing. It is known to
contain deposits of minerals such as phosphate, kaolin, silica sand (quartz),
lignite, oil shale, limestone, ceramic refractory clay, gypsum, columbium, pegmatite,
vermiculite, hedmanite and peat. Several kimberlite pipes, a mineral closely associated
with diamond deposits, have also been discovered in and around Kapuskasing.
Agrium Kapuskasing
Phosphate Operation
Agrium Incorporated
produces and markets fertilizer and related products to the global agricultural
industry. In 1998-1999, Agrium developed an open pit phosphate mine and processing plant
in the Cargill Township, approximately 40 kilometres southwest of the town of
Kapuskasing.
The purpose of the
Kapuskasing Phosphate Project is to produce approximately 1 million tonnes of phosphate
concentrate per year for the life of the mine (approximately 15-20 years) in order to supply
Agrium's fertilizer plant in Redwater, Alberta. The end product produced in Redwater is
Mono Ammonium Phosphate, or MAP - a phosphate fertilizer. The mine, which is fully operational
since the summer of 1999, consists of the open pit mine and on-site processing
plant.
Agrium Kapuskasing
Phosphate Operations is the first ever phosphate mine in Canada and ranks as one of the highest
grade phosphate mines in the world. The plant employs over 200 permanent people both in
the mine and in the mill.
The mineral deposit in
Kapuskasing is high grade phosphate rock. Tests have shown that, at its purest, the ore is
almost suitable for use as is. The phosphate ore is found in three deposits, all of which
will be mined using conventional open pit techniques. Due to the unconsolidated nature of
the ores, little blasting is required during mining.
Agrium Kapuskasing has
worked diligently to establish and maintain good relationships with both local government and
community organizations. The positive impact of this mine and mill is already evident in
Kapuskasing; local employment and real-estate markets have both increased.
Minerals
| Phosphate |
Agriculture
is the prime market for phosphate rock. As the world's population increases, so does the
demand for fertilizer in order to maintain arable lands. |
| Kapuskasing area contains sizeable deposits of
phosphate. Agrium
Kapuskasing Phosphate Operations is currently mining large quantities of the important
mineral. |
| Kaolin |
Also known as china clay,
kaolin is used extensively in high quality paper, ceramics, plastics, rubber and
paint. |
| A
large deposit of kaolin exists in the Moose River Basin, north of Kapuskasing. Accessible by
road, the deposit has attracted interest for six decades and mining of part of the deposit is
currently being pursued. The principal use of kaolin is as a filler in fine paper products and
as Canada does not produce any kaolin of similar quality to what is available locally, there is
great anticipation for the future value of the deposit. Another uses for the clay is the
manufacture of fine bone china comparable in quality to the best bone china in Europe. A
technological breakthrough enables the replacement of bone with a chemical to achieve the same
results. |
| Ceramic Refractory
Clay |
Dense plastic clays form
part of the mineral deposit in the Moose River Basin. Much of the clay is suitable for
stoneware, whiteware, china and pottery, sewer pipes and building bricks. |
| There are also several locations where
refractory clays are reasonably accessible. Ontario now meets this market using imported clays
from the United States of America. |
| Silica Sand
(Quartz) |
Used in the manufacture of
glass, quartz sand is common in the Moose River Basin, associated with kaolin, and is of high
natural purity.
|
| The high cost of transporting it to markets in
southern Ontario currently make mining the silica sand on its own economically unfeasible.
However, it may add to the feasibility of opening and maintaining a mining operation in the
region principally to tap kaolin and other deposits. |
| Lignite |
Explorers have known of
and made good use of lignite outcrops on the banks of the Abitibi River since 1672. A large
deposit of lignite exists at Onakawana, a railway siding on the Ontario Northland Railway, 160
km south of James Bay. It is the only known lignite deposit in Ontario. |
| Lignite is a soft brown coal that is used the
world over for heating and electric power generation. It can also be converted to crude oil and
petrochemical feedstock. |
| Oil
Shale |
The region is known to
have deposits of oil shale, a sedimentary rock which yields oil and gas. A large formation, the
Long Rapids Formation, exists in the Moose River Basin along the Abitibi River. |
| Estimates of its potential suggest production of
50,000 barrels of oil daily using a hydrogen retorting process with by-products of sulphur and
ammonia. |
| Limestone |
Limestone is abundant in
the Moose River Basin and several deposits are readily accessible.
|
| Limestone can be used in the manufacture of
portland cement and lime. |
| Diamonds |
There appears to be some
encouraging results for diamond exploration just south of Kapuskasing. Reports confirm the
prospectiveness of the valid quality targets identified on the flank of Kapuskasing. The
properties host strong concentrations of kimberlite indicator minerals associated with the
geo-physical features resembling pipes and dykes. |
| The promise has tickled the fancy of several
prospectors. In recent years, major mining companies explored the area for diamonds.
Exploration work continues from year to year. |
| Peat |
Canada is the second
largest exporter of horticultural peat in the world and Ontario, with 78 million acres of
peatland, has the largest volume of peat in the country and the third largest in the world.
More than three quarters of this vast resource is in the Hudson and James Bay Lowlands. Yet, no
peat industry exists in the area and Ontario remains a net importer of peat. |
| Studies have shown that the peat available in
the region is of good quality and in ample supply. Considering that 90 percent of the peat is
on Crown land, access is relatively simple to arrange. The peat bogs are also easily reached
and the local climate is similar to Northern Europe, Maine, Minnesota, New Brunswick and Quebec
where major peat operations currently exist. |
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