Century Global Commodities Corp (TSX:CNT), which controls some of the largest iron ore resources in Canada, said that its flagship Joyce Lake direct shipping iron ore (DSO) project in Newfoundland and Labrador, close to Schefferville, in Québec has achieved an environmental milestone.
The Hong Kong-based company said the Impact Assessment Agency of Canada (IAAC) has communicated the outcome of a conformity review of the draft Environmental Impact Statement (EIS) for the Joyce Lake DSO project through a letter dated November 7, 2022.
The agency has determined that the draft EIS and associated English EIS summary submitted on October 1, 2022, is “sufficient to proceed to technical review by the agency, federal authorities, and indigenous groups.”
However, the agency will expect the final EIS to have updated information for each of the indigenous communities. The agency said it understands that the proponent is continuing to engage with indigenous groups to meet this requirement prior to the submission of the final EIS.
Century said the agency’s review did identify some outstanding editorial changes. While they don’t cause a delay in starting the technical review, the agency has requested that they are addressed prior to the submission of the final EIS and EIS summary, which will be in a combined report form conforming to the EIS Guidelines of Newfoundland and Labrador.
Proceeding to a technical review doesn’t imply that the information provided is adequate to support the completion of the environmental assessment, said the company. The federal authorities have already provided comments that may be developed into information requirements during the technical review.
Federal and provincial environmental assessment
Century said Joyce Lake’s environmental assessment continues federally by the IAAC and provincially by the Newfoundland and Labrador Department of Environment and Climate Change (NL-ECC). The firm will combine the IAAC EIS with the NL-ECC EIS and submit a final combined EIS document to both agencies in mid-2023.
“The IAAC proceeding with a technical review, is a major project milestone and is expected to reduce review time by IAAC of the final combined EIS,” noted Century. The firm also plans to submit the draft EIS to NL-ECC for review to speed up the review of the final combined EIS.
Century said it is continuing to collect environmental baseline data and engage in "extensive consultations" with indigenous groups about verification of EIS content, their concerns, and potential mitigation.
“I am pleased with our EA progress and achieving the major milestone of proceeding with the IAAC technical review of the draft EIS,” said Century Global founder CEO Sandy Chim.
“I look forward to the submission of the final combined EIS in mid-2023…work now being done will allow accelerated progress towards EA release in early 2024, placing the company in a position to make a production decision,” he added.
Advancing the Joyce Lake project
Joyce Lake comprises an open pit mine with dry crushing and screening of ore generating a split of 65% sinter fines and 35% lump products with an average annual production of 2.5 million dry metric tons (dmt) of DSO products at an average grade of 59.9% iron for about seven years, said Century. The products will be transferred by trains to the port at Pointe Noire for shipment primarily to China.
On October 31, 2022, Century’s project feasibility study determined an initial capital cost of C$270.4 million, generating after-tax NPV (net present value) of C$184.6 million and an after-tax internal rate of return of 20.01%, which provides the foundation for advancing the project.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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