CN Rail Strike Affects Fuel Supplies to Canadian Mining operations

Ottawa, February 21, 2007. The Mining Association of Canada (MAC) expressed
concern regarding the significant and growing economic impact of the CN rail strike on
mining communities and urged government action to resolve the labour dispute.
The impact is felt strongly by mining companies dependent on rail to either transport fuel
in, or transport products and by-products from operations.
“A continued strike by CN workers will have a serious effect on the industry,” said Peter
Jones, Chairman of MAC and President and Chief Executive Officer of HudBay Minerals
Inc. “The shipment of fuel and other supplies to mine sites is being compromised as is
the transport of mining products, which may cause a halt in production and closure at
some sites.”
The situation in Canada’s north is becoming very serious. The CN rail strike is causing a
shortfall of essential fuel shipments to the diamond mines in Northern Canada. While
workers on the Mackenzie Northern Railway, which connects the NWT to Alberta, are
not part of the strike, CN Rail has been unable to provide enough tank cars to Edmonton
refineries to meet the annual fuel re-supply commitments. Timing is critical because the
fuel is delivered to the mines on a seasonal ice road that typically closes by the end of
March or first week of April due to melting ice.
A record volume of fuel and other supplies are planned this year. Partial loads are being
delivered from CN rail to Hay River and it is not known at this time if the shortfall can be
made up in the time remaining for the winter road.
The two operating diamond mines in the NWT employ about 2,500 workers and are
responsible for approximately 50% of the NWT’s Gross Domestic Product. Their
combined production makes Canada the world’s third largest producer of rough
diamonds. Other mines, in construction in the NWT, and in Nunavut, dependant on the
winter road are also affected by the strike.
Gordon Peeling, President and CEO of the Mining Association of Canada, said “This
strike is already having a severe impact on the ability of companies to transport products
for shipment, the net result is the negative effect across the value chain.”
Based in Ottawa, The Mining Association of Canada is the national organization for the
Canadian mining industry. Its members are engaged in mineral exploration, mining,
smelting, refining and semi-fabrication.

source:www.mining.ca