Hudbay and Arctic Gateway Group are still dotting i’s and crossing t’s on terms for the company’s first shipment of minerals from Lalor mine to Churchill through Flin Flon - but both companies are planning to complete it later this year, as early as April.
Hudbay and the company that operates the Hudson Bay Railway and related infrastructure in Churchill will soon ship zinc concentrate out to open sea - but some final details need to be agreed on first.
“We are finalizing the agreement with Arctic Gateway Group (AGG) for the shipment of 20,000 tonnes of zinc concentrate from our Lalor nine in Snow Lake to the AGG terminal in Churchill in 2024,” reads a statement from a Hudbay spokesperson to The Reminder.
The first shipment of concentrate will be taken from Snow Lake, trucked to Flin Flon, loaded onto a train bound for The Pas and moved onto the Hudson Bay Railway line en route to Churchill. Arctic Gateway is working on building storage facilities to keep the concentrate in before shipping it out to open water.
The concentrate shipment will take months to fully get from Lalor to Churchill - three, to be exact, which is expected to fill one shipping vessel.
“The shipment is set to take place in the second quarter of 2024, involving approximately 200 freight cars over a span of three months. The cargo is anticipated to fill a single shipload,” said the spokesperson.
“This strategic initiative by AGG is expected to result in the reemployment of port workers in preparation for the 2024 shipping season.
The deal was first announced by Arctic Gateway in December and, at the time of the announcement, still needed final regulatory approvals and negotiation of definitive documents between the two companies.
Hudbay already operates rail infrastructure in Flin Flon and has operated an ore train from Flin Flon through to The Pas for decades. In the past two years, Arctic Gateway has set up an office in Flin Flon and has advertised for open positions on its northern lines. The company is responsible for operating the Hudson Bay Railway and operates both the Port of Churchill itself and the nearby Churchill tank farm, along with a freight services branch.
Arctic Gateway was formed in 2018 as a partnership between local governments and First Nations and two companies, Toronto-based financiers Fairfax Financial Holdings and Regina-based food company AGT Food and Ingredients. Northern Manitoba communities, including some not located on the rail line, were invited to purchase ownership in the partnership under the name OneNorth - the City of Flin Flon did just that in 2018, buying three shares for three dollars. As such, the City of Flin Flon is a part-owner of the project.
The company is responsible for operating the Hudson Bay Railway and operates both the Port of Churchill itself and the nearby Churchill tank farm, along with a freight services branch.
