Mining company searching for new deposits near Flin Flon

A Canadian mining company is searching for new ore deposits near Flin Flon, Man. more than a year after shuttering its long-running mining operation in the northern Manitoba community.

Hudbay Minerals Inc. has signed a memorandum of understanding with the Japan-based Marubeni Corporation for an exploratory partnership focused on discovering new mineral deposits near its dormant facility in Flin Flon.

The company's 777 zinc mine shut down in 2022 after 18 years of operation. Hudbay continues to operate mining facilities in nearby Snow Lake.

"This exploration partnership would allow us to couple our operational and exploration expertise with Marubeni’s balance sheet strength to test our large Flin Flon land package and potentially revive our dormant Flin Flon processing facilities," said Peter Kukielski, Hudbay’s president and CEO in a news release.

The agreement would see Marubeni cover approximately $10 – 15 million in exploration costs while Hudbay searches for new ore deposits.

Flin Flon Mayor George Fontaine is excited about the announcement. "For them to find a reason to come back and work here, of course, it would be a welcome event," he said. "They've been a big part of our community ever since it's been a community."

Fontaine said the shutdown of the mine has had a drastic effect on the town.

"Them packing up and leaving was a frightening thing to the community. And it's made a big difference in our income, because they were a part of our tax base, and that's now being reduced and it continues to be reduced as their footprint disappears."

He said it may take a few years before the town sees any benefits from the agreement.

"It's an exploration thing, and that won't change anything in the immediate future," said Fontaine. "Exploration takes a lot of time for it to come to any fruition and become a mine. So it's not the kind of thing we're going to see changing things here tomorrow."

Hudbay has discovered and operated 29 mines in its nearly 100-year history in Manitoba.