Australian Mining Company Pulls Plug on Nova Scotia

If Nova Scotia wasn't already considered one of the most difficult jurisdictions to conduct business in the mining sector, the province's reputation will not be improved by Australian based mining company, St. Barbara Limited's recent decision to liquidate its holdings in Nova Scotia. The company has planned projects at Fifteen Mile Stream, Cochrane Hill and Beaver Dam. In this week's Insights Podcast with Andrew Strelein, the company's Managing Director & CEO, he clearly points a finger at the regulatory process in Nova Scotia. St. Barbara purchased Atlantic Gold in 2019 for $772 million and had to take a major write down on its investment due to prolonged details in permitting to allow the company to recoup its investment. Our conversation is wide ranging and includes a discussion about the requirements placed on a mining company to ensure that the funds are available to reclaim land from a completed mining project, as the company is currently doing at its Touquoy Property 80 kms northeast of Halifax. 

Premier Houston's recent "open for business" announcement regarding the development of our natural resources will require a closer look at current timelines for permitting and transparency associated with the permitting process, as well as the need for more internal expertise with the Department of Environment & Climate Change to conduct fair assessments of mining projects. It is noteworthy that Strelein was quick to point out that the regulatory legislation was not the problem, just the implementation of that legislation.

This is an excellent primer about mining for those interested in learning more about this sector.