Manitoba fires threaten Sinomine’s Tanco lithium-cesium mine

Sinomine’s Tanco mine in southeast Manitoba, one of Canada’s two lithium mines, faces risks as wildfires continued to rage in the area on Friday.

Tanco, which produces lithium, cesium and tantalum is about 180 km northeast of Winnipeg and sits right beside a large zone where fires are burning out of control, according to the Manitoba government’s Fireview portal. That zone covers the main access road to the mine from the community of Bird River.

The also zone stretches north towards Nopiming Provincial Park, which is under an evacuation order. To the mine’s west, another fire burning near the town of Lac du Bonnet is also classified as out of control. Two town residents were killed in the fire this week.

Employees with the China-controlled Tanco were reportedly seen driving out of the area, CBC said. The provincial government on Tuesday ordered people to evacuate areas just northeast of the mine near Bird Lake, according to a provincial Fire Bulletin.

Highways closed

Highways near Tanco have also been closed due to the fires, with Google Maps showing that much of highways 313 and 315 that lead to the mine are closed.

Officials from Sinomine and Grid Metals (TSX: GRDM), which has an exploration agreement with Tanco for nickel and lithium projects in the area, didn’t immediately reply to phones calls and emails on Friday seeking comment. Grid’s Donner Lake property is just west of the large fire zone.

Canada’s second lithium operation is the North American Lithium mine near Val-d’Or, Quebec, operated by Sayona Mining (ASX: SYA) and Piedmont Lithium (Nasdaq: PLL; ASX: PLL). The Northern Miner visited the Tanco site in 2023 and discussed with Grid leaders about Tanco’s Chinese ownership as Canada and China asserted increased minerals nationalism.

Fire prevention

Mining companies operating in remote areas are increasingly implementing strategies to protect their sites from wildfires. These measures encompass advanced technology, infrastructure enhancements and collaborative planning.

Companies use satellite imagery, weather modeling and fuel mapping to assess wildfire risks. By identifying potential ignition points and modeling fire spread under various conditions, they can prioritize areas for mitigation efforts, according to a feature in Northern Miner sister publication Canadian Mining Journal.

Innovative solutions like the “Wall of Water” system from an Ottawa-based company have been developed to shield facilities. This system projects a barrier of water to protect structures from approaching fires. Miners also clear vegetation around infrastructure to reduce fuel for potential fires, and regularly update emergency response plans.

Lithium output

The Tanco Mine resumed lithium production in December 2021, focusing on spodumene concentrate. In its initial stage, the mine shipped about 2,000 tonnes of spodumene concentrates to its sister company, Jiangxi Donpeng New Materials, for processing into battery-grade lithium hydroxide and lithium carbonate. The company has plans to expand its production capacity to meet growing demand in the lithium battery market.

The mine also holds more than 60% of the known global reserves of pollucite, the primary ore of cesium. Cesium extracted from Tanco is primarily used in the oil and gas industry, particularly in high-density drilling fluids.

Historically, the Tanco mine produced significant quantities of tantalum from 1968 to 2013, which is essential in electronics and aerospace applications. The United States military was a main buyer at the time when the site was owned by Boston-based Cabot (NYSE: CBT), a global chemicals company.