'It's not financially viable': Sisson mine plan questioned by Tories

A Progressive Conservative MLA has raised questions about the proposed Sisson mine's environmental risk and business case, comments that appear to contradict his own party's position on the project.

Moncton Northwest MLA Ernie Steeves said Wednesday the proposed mine is "dangerously close" to the Nashwaak River watershed.

He also said it may not be viable financially because of a drop in mineral prices.

In 2014, the price of tungsten was right up there. It's not now.- Ernie Steeves, Moncton Northwest MLA

The rookie MLA's skepticism is at odds with the 2014 PC election campaign in which Steeves was a candidate. In that race, the party ran on encouraging resource development, including the mine, and accused the Liberals of lacking a commitment to such projects.

Asked about that position, Steeves said Wednesday things have changed.

"In 2014, the price of tungsten was right up there," he told reporters. "It's not now."

Steeves said tungsten prices have "tanked" and the price for the mine's other mineral, molybdenum, which was getting $45 US a pound in 2005, is now $7.

"It's not financially viable," Steeves said, accusing the Liberals of "promising people things that they know are not ever going to happen."

Tungsten is used to make light bulb filaments, X-ray tubes and electrodes.

But Environment Minister Serge Roussellesaid the mine's proponent, Northcliff Resources, will probably make its decisions based on long-term price forecasts, not the amount on a given day.

"The market will decide the question of timing in terms of when the project will go ahead," he said. "That is up to the proponent to decide."

$4M investment

And at least one major investor seems to be betting it will happen.

The Todd Corp. of New Zealand, a privately held company run by a billionaire family, announced Wednesday it will invest $4 million in Northcliff through a stock purchase. That follows a $3 million investment by the same company in December.

Rousselle also said that if Steeves is questioning the mine because of plunging prices, he should also reconsider PC support for shale gas development, since gas prices have also dropped since 2014.

Steeves waded into the Sisson discussion when a legislative committee was debating Rousselle's departmental budget estimates. He said the province doesn't appear to be budgeting any money for environmental inspections at the mine.

The province spent $187,000 last year on its environmental impact assessment of the project, which approved it with conditions.

Rousselle told Steeves while his staff would conduct inspections in the future, Northcliff would pay the cost. That's why there's no money in the coming year's budget.

But Steeves told reporters he still has concerns about the environmental impact of the open-pit mine, which will cover 1,253 hectares north of Fredericton.

'We all worry about it'

"We all worry about it and we worry about the ongoing money there," Steeves said. "Yeah, absolutely there's environmental concerns with everything we do, and I just want to make sure they're keeping those in check, if they go ahead."

The Sisson mine was one of the projects former PC premier David Alward frequently mentioned in his "Say Yes" re-election campaign in 2014.

Alward said he would not "take the easy way out" by rejecting controversial resource development opportunities such as shale gas extraction and the mine.

Steeves wouldn't say Wednesday if he wants the mine to go ahead.

"That's up to the government," he said. "I want to see jobs in New Brunswick, absolutely."

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He refused to say what he thought about the mine's open pit, even though he was the one to raise the issue with Rousselle during the committee hearing.

"I'm not the environmental expert, so I'm not sure I can comment on that,"he said.

Steeves wouldn't say what he would do about the mine if he were in power, either, saying he'd have to consult the PC caucus.

"I'm not the leader of the party," he said, pointing out he was the party's critic for seniors issues. "I don't know what the policy would be on that."