A deal between Rambler Metals and Mining and the Town of South Brook has been inked.
The contract will allow the mining company to use Goodyear’s Cove to transport their copper concentrates. The deal is worth $30,000 annually for five years. After that period, negotiations will resume, said Rambler’s chief financial officer Norm Williams.
Mr. Williams said with limited docking facilities on the Baie Verte Peninsula, the decision to negotiate with the town was inevitable.
“The infrastructure is in place and we didn’t have to invest millions of dollars to put docking facilities there,” he said.
Crew Gold also used the dock before it suspended operations at the Nalunaq mine in Greenland in 2009. The last shipment of ore was unloaded April of that same year.
South Brook Mayor Paul Mills said he’s pleased with the deal, but didn’t want to take all the recognition.
“Credit should be given to the previous council because they had the foresight to acquire the dock properly for the town.”
Mr. Mills said revenues generated from the docking facility have allowed the town to pay off loans while purchasing new equipment.
The mayor also said he’s eager to work long term with the mining company.
Mr. Williams said “depending on when the mill starts up” the first shipment could commence late this year or early 2012.
In addition, Rambler will construct a storage facility near Goodyear’s Cove to store copper concentrates.
“Then we’ll conveyor it out to the ships,” said Mr. Williams.
The storage facility will be roughly 80 by 200 and surveying is anticipated to start next month once the snow is gone.
Mr. Williams said the Green Bay South area will not be “a big hub, but will be busy four or five times a year when we load the ship.”
Based on a feasibility and start up plan, Mr. Williams said Rambler will transport roughly 20,000 tonnes of copper concentrates annually. Shipments will occur quarterly.