While no timeline was given, Rio Tinto could lose its mineral claim in the Fort à la Corne forest at some point, said the Department of Energy and Resources.
The company can also choose to transfer them or just surrender them outright, but there are deadlines attached to the claims.
“Rio Tinto may choose to transfer the mineral claims to another company or surrender the mineral claims back to the Crown. If not surrendered or transferred, mineral claims will also automatically lapse, on varying dates dependent on how much expenditure has taken place,” said the Department in an emailed statement.
How long it takes for time to run out depends on how much money was invested so far.
Rio Tinto told its partner, Shore Gold, in late June that they were putting activity at the mine site northeast of Prince Albert on maintenance only scheduled with the potential that they might exit altogether.
Rio Tinto confirmed the move to paNOW by email on Friday.
“Rio Tinto confirms it has advised Star Diamond, its joint venture partner on the FalCon diamond project in Canada, that it is reviewing options for the FalCon project, which will continue in care and maintenance through to the end of 2022,” said the statement.
“There are many variables to be considered in the next steps and we are working closely with Star Diamond and local stakeholders to assess the options, including a potential exit.”
They did not give any details as to what might have prompted the change. Recent reports on the diamond samples taken from the site have been positive.
The province said that transferring rights is a fairly straightforward process and is done through an online portal on the Mineral Administration Registry Saskatchewan website.
“If the mineral claims are surrendered, the claim status will be updated immediately, and the lands will become available for reacquisition through MARS. If a case occurs where mineral claims lapse, the lapsed land will become available for reacquisition through the province’s MARS system,” said the Ministry.
Rio Tinto has started advising some impacted municipalities about its new approach to the mine, including the Town of Nipawin which will consider a letter from the company at this evening’s council meeting.
In the letter, the company said it will honour any commitments already made.
“Despite the decision to review alternatives for the project, including potential exit, RTEC will honour all existing commitments, and we will work with the communities where we are currently negotiating agreements to establish a path forward,” said the letter, written by Peter Dodson, principal advisor of communities and social performance for the FalCon project.
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susan.mcneil@pattisonmedia.com
