The company that wants to extract and sell magnetite from tailings at the old Whitehorse copper mine has run into a problem.
Eagle Industrial Minerals' negotiations to lease the dock in Skagway, Alaska and ship the ore from there, have broken down. The company planned to have 30 trucks a day bring ore from Whitehorse to the port of Skagway where it would then ship the ore to the far east for steel production.
It has been negotiating with the Alaska Industrial Development and Export Authority, which owns the Skagway ore terminal, to use the facility.
It's key to the magnetite plan, but lease talks to use the site have broken down.
"We're trying to figure out if there's some way to load a ship in Skagway without using the ore terminal because it doesn't look like AIDEA is going to back off those requirements," Eagle's Chuck Eaton says. "We haven't totally given up on AIDEA yet. We're still going to try to work with them somehow but we are having to look at alternatives."
Eaton says shipping through Skagway is the only profitable way to move the magnetite.
"We're fully permitted in Whitehorse so we can get started at any time but without a port there's no project," says Eaton.
The company hoped to start production this year.