MONTREAL – The head of a mining company that owns one of Canada’s largest gold operations says it would be very difficult to start such a project under today’s uncertain conditions.
The president and chief executive of Osisko Mining Corp. (TSX:OSK) says the costs of mining projects have gone up significantly and it would be difficult to find investors.
Sean Roosen said after a speech to the Canadian Club on Monday that capital costs have skyrocketed and the environmental burden has increased due to higher expectations.
Osisko’s Canadian Malartic operation in northwestern Quebec is one of Canada’s largest gold mines.
Exploration drilling for Canadian Malartic began in 2005 and commercial production started in May 2011.
Roosen also said recent attempts in Quebec to revise the mining law have created regulatory uncertainty, particularly amid the difficult market.
He also said Osisko’s tax burden has gone up 33 per cent since the company financed its massive open-pit mine in the city of Malartic.
The instability has made it difficult for companies to achieve good financing conditions, he added.