Skagway Mayor Andrew Cremata is happy to hear Minto Mines is thinking about shipping copper concentrate through the Port of Skagway after the dock reconstruction project is finished.

Minto announced last week it will consider using Skagway again in 2025 or 2026, once the reconstruction project is complete.

Minto shipped its last load of concentrate out of Skagway in the middle of March. The ore-loading facility has been shut down in anticipation of the reconstruction project that will begin this fall.

But Cremata told the Star this week the company needs to start a conversation with Skagway, because there are details to be worked out, and two years are not a lot of time to negotiate agreements of that nature.

They will, for instance, need to enter into an agreement to discuss moorage fees and such, he said.

Cremata noted the previous shipping arrangement was between Minto and the Alaska Industrial Development and Export Authority (AIDEA), but Skagway has become responsible for the port facilities.

An agreement between Minto and Skagway will, however, be essential in the future, as any party using municipal infrastructure needs to have an agreement with the city, he said.

“We would like to have them as a customer, but at some point they have to reach out,” Cremata said. “We do not go courting.”

He emphasized if Minto wants to continue using the port in the future, “that is fantastic news.”

Minto announced publicly last week it’s in discussions with other parties to explore options for shipping the concentrate.

The company’s announcement posted on its website on March 16 says: Minto Metals Corp. (“Minto” or the “Company”) today announced it will cease to ship its copper concentrate through the port of Skagway for at least the next two years, where concentrate from the Minto Mine has been shipped since 2008.

“Despite Minto’s best efforts to reach a mutually beneficial agreement, the town of Skagway recently came to a decision to shift the focus of its port towards cruise ships and tourism.

“The Skagway Port Redevelopment project involves significant rework of the Ore Dock over a two-year duration,” the company’s statement says

“This work allows for the berthing of an additional cruise ship and revamps the industrial section, which results in no ability to load ore until the project is completed.  

“Minto is currently in discussions with certain parties to explore other alternatives to shipping concentrate from Skagway. One option is the port at Stewart, B.C., which is a suitable alternative.

“The Company is also currently exploring other options and expects a new arrangement in place by July 2023 in time for our summer concentrate haulage period.

“The Skagway port could once again become an option in 2025 or 2026 after the redevelopment project is completed.”

Cremata does take exception with the statement that Minto was somehow unable to reach a new deal with Skagway.

He also takes exception to the suggestion that Skagway has shifted its focus to tourism over mining, because it’s just not true.

But he did note tourism and the summer cruise ship industry is a huge contributor to Skagway’s economy.

The city, he said, was waiting for a proposal from Minto – but it never came.

Skagway put its best effort into working with Minto, he said, but they just never received a proposal.

When Skagway took over the ore dock and loader, officials made it clear they would have to revamp the ore-loading facility and replace the ore-loading equipment because it’s old and decrepit.

There are giant holes in the loader, and even AIDEA found it to be substandard, he said.

Cremata said the city put a lot of effort and care into reaching an arrangement with Pembridge Resources, the company that acquired the Minto Mine in 2019 from Capstone Mining.

Officials even travelled to Vancouver to meet with the company during the annual mining conference in 2019, he said.

Building a new ore-loading facility, said the mayor, will first of all involve environmental testing to check for lead contamination from the days when the Faro lead-zinc mine used the ore dock.

He said they know they have lead contamination.

The concentrate from the Minto Mine contains mercury, he added.

Cremata said when the new facility opens, the shipping of concentrate will have to be in containers.

The closure of the ore facility will not affect local employment to any great degree, as there were just a handful of locals working at the ore dock, the mayor pointed out.

The Yukon government has committed $17 million to the new ore-loading facility.