Agnico Eagle Mines Ltd., headquartered in Toronto, is making one of the largest mining investments by a Canadian company in the country's history. The company will invest $14 billion in its portfolio of Ontario gold mines, according to the province's Ministry of Energy and Mines.
Investment Details
Agnico, the world's second-largest gold producer, plans to invest $12 billion by 2030 across its Ontario portfolio, which includes mines and exploration assets. An additional $2 billion will go into its Detour Lake underground mine project and its Upper Beaver copper-gold project.
CEO Statement
"Ontario is central to our long-term growth strategy, and the strength of our operations today reflects years of disciplined investment in our people, our partnerships and the communities where we operate," said Agnico chief executive Ammar Al-Joundi. He added that the company sees a "meaningful opportunity" to advance its project pipeline.
Production and Expansion
Agnico produced 3.4 million ounces of gold last year from mines in Canada, Australia, Finland, and Mexico. Within Canada, it operates mines in Nunavut, Ontario, and Quebec. The company plans to invest $1 billion in the Detour Lake underground project to boost annual production to over one million ounces of gold.
Located 185 kilometres northeast of Cochrane, Ontario, Detour Lake currently operates as an open-pit mine and is Canada's largest gold mine. Last year, it produced 692,715 ounces of gold at an all-in sustaining cost of $879 per ounce. Gold is currently trading at US$4,708 per ounce, down from its all-time high above US$5,589 per ounce in January.
The expansion of Detour into an underground mine, in addition to the open pit, would make it one of the world's largest gold mines. Only a few mines produce more than one million ounces per year. The expansion would extend the mine life to 2054 and create 800 jobs.
Upper Beaver Project
Agnico will also invest more than $1 billion into its Upper Beaver project in northeastern Ontario, near Kirkland Lake, creating 800 jobs. The mine is expected to produce 210,000 ounces of gold and 3,600 tonnes of copper per year over a 14-year operating life.
Government Support
Energy and Mines Minister Stephen Lecce said Ontario's mining permitting reform, including the new One Project, One Process framework, is making the province more attractive to miners. "This landmark investment, one of the largest private-sector commitments in modern Ontario history, will create thousands of good-paying jobs," he stated.
