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A Sudbury mine that shut down eight years ago in the face of slumping metal prices could soon be headed back into production.
Magna Mining announced Thursday that a preliminary economic study shows the Levack Mine could be economically viable again. The company’s board has approved plans to bring the mine back into production, with commercial mining targeted for mid-2028.
Levack was active until 2018 and produced nickel, copper and precious metals. At the time, it was owned by KGHM International Ltd. Magna Mining bought it in 2024.
The company’s preliminary study outlines a renewed mine life of about seven years, with production of roughly 2,200 short tons of ore per day. The ore is expected to contain copper, nickel, platinum, palladium and gold, as well as lesser amounts of silver and cobalt.
“I think it was a a straightforward and easy decision for the board to approve the restart.”Magna Mining CEO Jason Jessup
“We are focusing a lot of our mining plan around copper, which has been doing very well from a price perspective, as well as precious metals,” Magna Mining CEO Jason Jessup said. “There is a tremendous amount of precious metals underground here at Levack.”
The company estimates it will cost about $70 million to restart the operation, but Jessup said the mine’s existing infrastructure will help keep costs relatively low.
Magna Mining expects the Levack mine to operate for at least seven years, with the potential to extend. (Faith Greco/CBC)
Jessup said the project could pay back its initial investment in about seven months.
“I think it was a a straightforward and easy decision for the board to approve the restart,” he said.
The company plans to ramp-up development work in early 2027, with commercial production expected around the middle of 2028.
Work is already underway underground, including efforts to re-establish the production hoist, move waste rock to surface and prepare existing levels and drifts for renewed mining activity.
Once fully operational, the mine is expected to employ about 200 full-time workers, in addition to contractors and part-time employees.
Jessup said the Levack restart is part of a broader strategy to bring shuttered Sudbury mines back into production by taking advantage of the region’s existing mining and processing infrastructure.
Magna is also studying several other past-producing properties, including its Crean Hill project.
However, the company cautioned that the Levack study is preliminary. A full feasibility study has not yet been completed, meaning the economic viability of the project has not been confirmed.