Agnico Eagle pulls extension proposal for Rankin Inlet gold mine

A mining company has pulled its proposal to extend a Nunavut mine, citing"serious concerns" about the analysis of its projectby the Nunavut Impact Review Board (NIRB).

Last month, the NIRBrecommended against Agnico Eagle Mines' proposal to extend the life of the Meliadinegold mine near Rankin Inlet, Nunavut. The recommendation followed aneight-day public hearing on the proposal in September.

In a strongly-worded letterand 50-page response addressed to federal Northern Affairs Minister Daniel Vandal, Agnico Eaglesaysit has withdrawn its plans, effective immediately.

"We believe it is important to respond to the report, to address what we contend are inaccuracies," the letter states, "And clarify some potential misunderstanding of the evidence presented during the NIRB process, and reliance on unfounded statements made by participants."

After the NIRB releasedthereport, the final decision to approve or reject Agnico's proposal restedwith Vandal.It's unclear if that is still the case, given the mining company's withdrawal.

A spokesperson for Vandal's office said the minister hasn't yet issued a response to the company's letter.

"I can confirm we are working towards routing a response to the Nunavut Impact Review Board regarding the withdrawal letter in early January," spokesperson Michael Clarke wrote in an email to CBCNews.

Years of work come to a halt, for now

Agnico's proposal would have extended the life of its Meliadine mineby 11 years, to 2043,and increased underground mining.

It also originally included an 11-turbine wind farm to power the mine. The wind farmdominated the public hearing on the proposal, with every intervenor citing concerns about its potential impact on caribou in the region.

Agnico has since scrapped those plans from the project altogether.

In its recommendation to Vandal,theNIRB said the mine, which opened in 2015 and is 25 kilometres from Rankin Inlet, should not expand at this time, "due to the considerable uncertainty of the potential for the proposal to have negative, lasting effects on caribou, and the uncertainty of cumulative effects."

Agnico'sletterto Vandal breaks down NIRB's reasons for rejecting the proposal, making arguments against each one.

"Our decision would be different if the report had concluded with recommendation in favour of the Meliadine extension proposal," the letter said.

The company also said that it hopes its response "can provide a foundation formore balanced, accurate and predictable reports from NIRB."

Thecompany refutesthe NIRB's claims that extending the mine's life would have intensified its impacts.

It also said the mine is not causing "significant adverse effects" to caribou.

The NIRB said in a statement that because it had already finished its process, itwould not be commenting on the issues Agnico raised in its letter.

Agnicoalso said it isn't ruling out a new application for the extension.

In the meantime, it is revising its application to amend its water licenceto support the current Meliadine mining plan, which includes some aspects of the extension proposal.