Some want a robust gold industry in Nova Scotia. Others say good riddance

A year after Nova Scotia's only active gold mine shut down, people in the industry say the provincial government is standing in the way of eager prospectors.

Others, including environmentalists and Mi'kmaq, are opposed to any new mines and are hoping the closure marks the end of the province's long history of gold production.

St Barbara, an Australian firm, is the main player in Nova Scotia's modern gold rush. The company owns the Touquoy mine, which operated from 2017 to 2023, and the company has a vision for three more open-pit gold mines along the Eastern Shore. 

But Andrew Strelein, the CEO and managing director of St Barbara, said all of those projects are halted indefinitely.

"We want to be investing in Nova Scotia," said Strelein. "We like Nova Scotia."

But he's worried about roadblocks.

"The only difficulty that we've really encountered in Nova Scotia is dealing with the Department of Environment," he said in a recent interview in Halifax. 

Crying foul

Strelein's complaint is rooted in the recent designation of the Archibald Lake Wilderness Area.

St Barbara had intended to draw water from Archibald Lake for its proposed Cochrane Hill mine, but with the whole body of water under protection, that's no longer allowed. As a result, the company threw out its design and has gone back to the drawing board.

Strelein believes the department made the designation with the intent of stopping the project.

Based on documents he received under access to information, which he shared with CBC, it appears that initial boundaries for a wilderness area excluded Archibald Lake. The first reference to including Archibald Lake in the wilderness area appears in 2019, a year after the company publicly released its plans.

"Suddenly this was launched without any consultation, even knowing that our project was going to be impacted so severely," Strelein said.

CBC requested comment from the Department of Environment and Climate Change and it did not respond by deadline.  

Strelein is now looking for some kind of assurance that the same thing won't happen again with a revised design for Cochrane Hill, and for two other mines — Fifteen Mile Stream and Beaver Dam.

"That's a very expensive process, to go through the permitting of a project, and if it's not going to be fairly dealt with, then there's no point taking that forward," he said.

Other prospects

St Barbara is the biggest player in gold mining in Nova Scotia. But it isn't the only one.

There are others with exploration permits and one company has provincial environmental approval for a gold mine in Guysborough County.

Toronto-based Signal Gold has previously said it wanted to start construction for its Goldboro mine this year, but that no longer seems likely. 

The company did not respond to multiple requests for comment, but in a recent news release it said it has submitted applications for "all key permits."

Among those is an application for a federal regulatory amendment. Environment and Climate Change Canada said it is consulting on that application now, it expects to complete consultations in the fall, and then it will be another six to 12 months before a decision is reached.

Hoping for a resolution

St Barbara sold its Australian mining assets last year, and cut its workforce in Nova Scotia from over 300 down to 40 when operations stopped at Touquoy. The company has one other project, in Papua New Guinea.

All those things considered, Strelein said his company is now "relatively small" and Nova Scotia presents meaningful opportunities, which is why he's still pressing forward. He has not, however, received any of the assurances he's looking for from the province.

He said repeated requests to meet with the environment minister and premier have been turned down. Not only has he been looking to discuss future projects, he also wants to talk about reclamation of Touquoy. Disagreements over that cleanup project are now before the Supreme Court of Nova Scotia.

Strelein said he hopes his company and the province can find a resolution through an arbitrator.

Nova Scotia's 'very negative reputation'

Sean Kirby, executive director of the Mining Association of Nova Scotia, said the province has developed a "very negative reputation" in the industry.

He pointed to the annual Fraser Institute survey of global mining executives. Last year, it pegged Nova Scotia as the least attractive jurisdiction in Canada in which to invest. 

Kirby said permits are the main reason, and he called for reform to the system.

"Operations must continue to be held to the highest environmental and safety standards, but we need to reduce red tape, and have clear, consistent, science-based rules and regulations," Kirby said in an email.

Community opinions

Scott Beaver also called for reform, but with a different outcome in mind. He thinks it should be harder for mines to get approval.

Beaver, president of the St. Mary's River Association, said he was happy to hear St Barbara had put all its projects on hold.

"Atlantic Gold, pack up your stuff and leave," he said, using an earlier name for St Barbara's Nova Scotia subsidiary, Atlantic Mining.

Beaver has been a vocal opponent of the Cochrane Hill project, and was an advocate for protecting the Archibald Lake area. 

"From our perspective in our community, we're extremely happy and proud of the province for protecting Archibald Lake," he said. He thinks the decision was fair regardless of the company's complaints.

He said he does not think Nova Scotia should support or enable any more gold mining.

"Other areas in Nova Scotia just don't deserve to have to go through what we've gone through here," he said.

On the other hand, Jacob Prest, president of the Mooseland and Area Community Association, said gold mining was a good thing for his community. He pointed to the creation of jobs, temporarily, and payments St Barbara made to his association to support community activities and projects.

Prest lives about 10 kilometres from the former Touquoy mine, and said the operation was never a bother or a problem.

"I never worked for the mine myself, I had family that did and friends that did, and I think they were a good employer in the area, even though it was relatively shorter term."

Prest said more gold mines should be allowed in Nova Scotia as long as environmental protection is a priority.

"I don't see why, if we have gold deposits here, why they shouldn't be capitalized on."

Opposition to future projects

"I think this is a great time for Nova Scotia to get out of gold mining," said Karen McKendry, senior wilderness co-ordinator at the Ecology Action Centre in Halifax.

McKendry said she'd like the province to turn down any new gold mine proposals.

While Strelein and Kirby argue that modern mining techniques are safe, McKendry said the scale of modern gold mines has an inherently negative impact.

"It creates bigger tailings piles and bigger tailings ponds than ever before," she said in an interview.

MiningWatch Canada, the Atlantic Salmon Federation and Millbrook First Nation also said they oppose future gold mining in Nova Scotia.

Millbrook's stance is focused specifically at St Barbara's proposed Beaver Dam mine.

"With little to gain, other than short-term employment, our band membership is not willing to accept the risks that come with open pit mining," the Mi'kmaw band said in a 2021 report.

"The community as a whole (Beaver Dam, Sheet Harbour, Millbrook and Cole Harbour) agrees that the proposed Beaver Dam mine is not in the best interest of the residents of Beaver Dam Indian Reserve and the surrounding area. We are both the nearest community and nearest Indian reserve. Due to public outcry, we oppose the Beaver Dam mine project."

Millbrook Chief Bob Gloade said in an email that the band's position has not changed in the intervening years.