Agnico Eagle Mines Ltd. has approved a US$2.4-billion redevelopment of its Hope Bay gold mine project in Nunavut and plans to continue an extensive exploration program across the property.

The company announced the investment, stating the project will support the long-term sustainability of its operations in Nunavut while contributing to economic development in northern Canada.

“We are also proud that this investment will contribute to the economic development of Northern Canada and enable meaningful, long-term economic participation for Indigenous organizations and partners, including the Kitikmeot Inuit Association,” says Agnico Eagle president and chief executive officer Ammar Al-Joundi.

The redevelopment plan includes reconstruction of the processing facility, installation of a 37-megawatt diesel power plant, upgrades to the tailings facility, acquisition of mobile equipment, and approximately 33 km (20.5 mi) of underground development.

Once operational, Hope Bay is expected to produce between 400,000 and 435,000 ounces of gold annually. Agnico Eagle estimates an initial mine life of 11 years, with potential for future expansion through continued exploration.

The company said the project is expected to create more than 2,000 direct and indirect jobs and generate economic opportunities for Indigenous organizations and local partners.

The federal government has also committed $25 million to the Hope Bay Wind Project, led by Inuit-owned Kitikmeot Tugliq Ltd. Partnership. The initiative will add four megawatts of wind generation and four megawatts of battery storage capacity to the site’s power system.

Federal Natural Resources Minister Tim Hodgson welcomed the investment, noting the role of resource development and Indigenous partnerships in the Arctic economy.

Agnico Eagle acquired Hope Bay through its purchase of TMAC Resources Inc. in 2021. Production at the mine was suspended in 2022 as the company focused on exploration and evaluating the property’s long-term potential.

The Hope Bay project is located in Nunavut’s Kitikmeot region, approximately 160 km (99.4 mi) north of the Arctic Circle.