A mothballed lead and zinc mine in Gays River near Shubenacadie, N.S., could be back up and running as a result of rising prices on the international metals market, says the president of CEO of ScoZinc, which owns the property.

Joe Ringwald told CBC News growing demand for lead and zinc combined with a decline in supply has awakened new interest in the mine. The open-pit mine operated between 2007 and 2009 before shutting down when lead and zinc prices plummeted.

"We're now in serious intent of moving ScoZine back into operation," Ringwald said.

"We would like to begin ground-breaking work next spring. We have to do some pre-stripping to access the ore in an extension area and start the excavation work in the spring and if not then, in the summer. And be in ore production, full production, late next year or early 2019."

Dozens of jobs

Up to 120 people could be employed when the mine goes into production, he said.

In addition, the mine has its own processing mill on site, which Ringwald calls "a key asset."

"It's a very well-designed and constructed mill and it's just a matter of feeding it the appropriate material."

He said the mill can process ore from ScoZinc mines as well as other operations throughout the province.

Ringwald estimates the company needs to raise $45 million CAD in financing to begin production.

ScoZinc is going through some major restructuring that includes a new board of directors. This summer the company lost its four largest shareholders.

"So we've had in effect a restructuring of our shareholder base as well," Ringwald said.

Some regulatory approval needed

Applications to provincial regulatory agencies are already in the works.

"We've been granted a renewal of our key permit — industrial approval —in Nova Scotia. It's been renewed for another 10 years," Ringwald said. That was confirmed by the Nova Scotia Environment Department.

The mine also needs an extension of its environmental assessment.

"We have been advised we will get that very soon. We have an environmental assessment on the books right now and it expires this fall and we're just looking for an extension of that," the ScoZinc president said.

2 extensions already granted

The company went through an environmental assessment process in 2011 to expand the mine and approval with conditions was granted, said Environment Department spokeswoman Chrissy Matheson in an email.

"The company had two years to begin the expansion. However, with a downturn in the metals market, the company has not yet begun the expansion. We have granted two extensions to the EA approval," she said.

"The company has asked for a third extension. We are considering that request."

Production goals

Ringwald is keen on getting the project started.

"We're a lower grade open-pit producer. The key is to get our costs down, get us into production, pay down our capital investment as quick as possible so we can achieve payback within one year and have enough leftover to weather the next downturn of metal prices," he said.

If ScoZinc can achieve that, it could become a longer-term producer rather than a swing producer, a supplier only when world production is tight, he added.

Supply shortage

Zinc and lead stockpiles are at their lowest levels in almost a decade and demand remains high, Ringwald said.

"In fact, there seems to be a growth in demand for zinc and lead. But on top of that there have been significant impacts to the supply side. A number of key zinc mines have shut down in the last couple of years," Ringwald said.

"We knew, as an industry, this was coming and it has now happened and there is very little to come on stream in the near future. So particularly on the zinc side, there will be a supply shortage in the near future."