By Divya Rajagopal

TORONTO (Reuters) – An unusually heat winter in Canada this yr has delayed the opening of a 400-kilometer (250-mile) ice highway that’s rebuilt yearly as the principle conduit for Rio Tinto (NYSE:), Burgundy Mines , and De Beers to entry their diamond mines within the distant Arctic area.

The Winter Street, which serves the area accessible solely by air for 10 months of the yr, opened with a two-week delay in the course of February, disrupting motion of products alongside the ice highway constructed over 64 frozen lakes.

Earlier this week, the Tlicho authorities in Northwest Territories (NWT) restricted motion of economic vehicles for few days in one of many winter roads resulting from anticipated hotter climate throughout the North Slave Area.

Whereas diamond manufacturing stays unaffected, the delay underscores the challenges that corporations face because the mines that make Canada the world’s third largest diamond producer come to the top of their productive life.

It additionally highlights the infrastructure hurdle for the NWT and Nunavut which can be positioning themselves as the following frontiers within the exploration of crucial metals, reminiscent of uncommon earth, cobalt and lithium, within the transition to a greener future.

The delays in constructing the Winter Street, which first turned operational in 1982, have occurred previously, however this yr’s is the longest delay in recent times, based on Tom Hoefer, senior advisor to the NWT and Nunavut Chamber of Mines.

“We did begin the highway a bit later because of this,” he stated.

Local weather change, pushed by the burning of fossil fuels, coupled with the emergence of the pure El Nino local weather sample, pushed the world into file warmth territory in 2023.

The impression of El Nino this yr resulted in Yellowknife, the capital of the NWT, recording a most temperature of zero levels Celsius (32 levels Fahrenheit) in December and minus 8.7 levels Celsius (17.6 F) in February, making it the warmest winter days in a decade, based on information from Atmosphere Canada.

The Winter Street opens between late January and early April and requires minimal of 29 inches (74 cm) of ice for automobiles that may carry 26,000 kilograms (57,320 lbs) of gross car weight, to move diesel and dynamite required to function the mines.

On hotter days, the engineers have discovered methods to trick nature by creating synthetic ice utilizing large sprinklers to spray water excessive up within the air in order that they cool and type thick layer of ice once they fall.

Paul Gruner, CEO of the Indigenous company Tlicho Funding Corp & Group of Corporations stated this yr the nice and cozy winter at first and if there’s a hotter finish of the season or an early spring, it may threat an early closure.

“So while you’re nibbling away on each side of that, you begin to create a really quick season,” Gruner stated.

The Winter Street is collectively operated by Burgundy Diamond Mines, Rio Tinto and De Beers of Anglo American (JO:) group which run the Ekati, Diavik and Gahcho Kue diamond mines respectively.

De Beers and Burgundy Diamonds stated operations at their mines haven’t been affected by the gentle winter. Rio Tinto declined remark.

The Winter Street prices C$25 million ($18.54 million) to function for 2 months, which is shared by the three corporations primarily based on items transported on the highway and distance traveled.

Nevertheless, the mines have a operational lifetime of round 20 years and as they attain the top of life, they must be shut down.

Rio Tinto has stated it can shut the Diavik mine in 2026 and De Beers plans to close Snap Lake finish of this yr, whereas searching for to increase the lifetime of Gahcho Kue.

CHICKEN AND EGG

Canada’s distant Arctic area, dwelling to round 86,000 folks, is going through the whole closure of all of the diamond mines by 2030 and is searching for methods to maintain mining alive.

The dearth of infrastructure is a problem and the shortened seasonal use of the ice highway may harm investments wanted to mine crucial minerals.

“In case you’re within the exploration part … and utilizing the winter highway as a part of your core enterprise mannequin, the dangers begin to come into … your determination making whether or not or to not advance a undertaking,” Tlicho Funding’s Gruner stated.

Hoefer of NWT and Nunavut Chamber of Mines stated the 2 Northern territories, that are as massive as Europe, have the very best infrastructure deficits in Canada – one of many causes for the very excessive prices of residing and doing enterprise within the North.

“It’s a chicken-and-egg scenario, the mining corporations most likely will not come except there may be some infrastructure, it is simply too costly,” stated Heather Exner-Pirot, director of Vitality, Pure Sources and Atmosphere program at Macdonald-Laurier Institute.

It prices C$3 million a kilometer to construct gravel roads, Pirot stated.

Mining teams are pushing for a mega infrastructure undertaking that connects NWT to Nunavut that runs via the diamond mines may assist unlock the mineral riches within the area. A minimum of 23 of the 31 crucial minerals listed by the Canadian authorities is discovered within the NWT.

“When the undertaking comes up, it might exchange the roads which have served mining for 40 years, however till that occurs, the ice roads are required,” Hoefer stated.

($1 = 1.3483 Canadian {dollars})