Lac Des Iles mine on target.

• Author: GOULIQUER, DIANNE
• Position: North American Palladium - Brief Article

North American Palladium Ltd.'s $208-million expansion project at the company's Lac Des Iles mine in northwestern Ontario is nearing completion, and officials say the mine will start up later this summer as planned.

At full production, beginning in 2002, the mine's annual output is expected to average about 250,000 ounces of palladium, 21,600 ounces of platinum, 16,300 ounces of gold, 2.52 million kilograms of copper and 855,000 kilograms of nickel, says company treasurer Nick Nikolakakis. "Right now we're producing 2,400 tonnes per day, and that will increase to 15,000 tonnes per day when the expansion has been completed," Nikolakakis says, adding the new mine will be more profitable because it will produce higher tonnage at a lower grade.

Expansion work at the mine began in July 2000 when pre-production stripping for an expanded open pit first began. At the time, the platinum group metal mining operation employed about 130 full-time workers. The number of full-time employees is expected to climb to nearly 250, many of whom will be from northwestern Ontario, once construction is completed.

"We're expecting about 234 full-time direct jobs," Nikolakakis says. "We're anticipating another' 180 jobs to be created indirectly."

He estimates at least another 200 indirect jobs and 286 "induced jobs" will follow as a result of the increased demand for supplies and fuel.

"As you can imagine, we need to source things like fuel, for example, and we anticipate that will indirectly create a number of jobs," Nikolakakis says. "And because there are more people up there, you have more people going to Safeway (for grocery shopping) and eating out and those kinds of things."

The company has also determined that the mine will drop $55.5 million in annual expenditures into Thunder Bay.

Commenting on the current strength of the platinum...