New mine
HudBay also announced late last year that it plans to spend $280 million on capital expenditures and at least $33 million on exploration activity in 2011 in Manitoba. The bulk of that has been committed for the development of its $560 million Lalor gold, zinc and copper mine near Snow Lake just a few kilometres away, and the expansion of its 777 mine.
Joe Buie, economic development and business analyst for Community Futures Greenstone, a federal government program helping communities plan for a changing economy, says metal prices have improved to the point where companies are reassessing mines that were mothballed years ago.
"Now it's feasible to open some of those previously closed mines," he said. While mining will forever be the backbone of the Flin Flon economy, town officials are hoping to build up some secondary industries to cushion the blow during the inevitable downturns in ore prices.
Fishing and hunting lodges are growing in popularity and eco-tourism is starting to show signs of a long-term future, too.
Flin Flon is also the centre of a trading area with more than 10,000 people. The Canadian Tire, Wal-Mart and Extra Foods attract people who used to drive to Prince Albert to do their shopping, Buie said.
Mayor George Fontaine said he's working hard to get some seniors housing built in Flin Flon. The construction of 60 or 65 units would cause a real "ripple" in town as younger people would move in to the houses the seniors are selling.
"We don't have any empty house sitting here. I'd like to see a housing boom. The next one we'll see is when they open the next mine," he said.
Housing
Despite the closing of the smelter, it's been business as usual in Flin Flon's housing market, according to Cheryl Hordal, a broker at Nordmark Realty.
"We noted a slouch in the starter home category which was due to uncertainty in the job market for younger people but it was offset by the normal vigorous demand for the upper-end homes," she said.
She said housing prices remained static in Flin Flon in 2010.
A 1,000-to-1,200-square-foot home with a garage sold for about $180,000 last year while a mid-range home in upgraded condition fetched between $100,000 and $150,000. But lately buyers have been looking upmarket, where a shortage is looming.
"We generally are in balance with supply and demand. The only shortage I have seen is in the $180,000-and-up market," Hordal said.
from Western Investor, March 2011
