No end in sight for Fort McMurray's looming gravel crisis

Delays in opening a new aggregate mine could mean an area-wide gravel shortage for oilsandscompanies in the Wood Buffalo region.

The current gravel pit, Susan Lake, 85 kilometres north of FortMcMurray, isnear-depleted and was scheduled to close in April.

A new gravel operation at Coffey Lake, 105 kilometres north Fort McMurray, was slated to replace the previous mine but itisn'trunning because of permitting issues.

Boththe industry groupand the province could not say when the new mine would open.

• FortMcMurrayandoilsandscould face gravel 'crisis,' trade group says

The industry group, the Fort McMurray Aggregate Users Group,warned Wood Buffalo municipal council in Februaryabout a looming shortage of the base material used in everything fromoilsandsconstruction to municipal infrastructure.

"This crisis is going to have a negative effect on all infrastructure development," chairman DanFoutstold council. "A crisis which could have been avoided."

The groupwould not do an interview other than to say talks were still continuing with senior government officials.

Shannon Phillips, Alberta's minister of environment and parks, said in an emailed statementthe government has worked with Athabasca Minerals to keep its Susan Lake open.

She said the government is continuing discussions with Mikisew North to work through issues related topermits for Coffey Lake.

Phillips said she hopes to resolve the issue in the coming months.

MikisewNorth, Coffey Lake's operator, declined to comment.

Hoarding gravel

Local contractor Paul McLeod, owner and operator of Vancon Services, said many suppliers have been hoarding gravel in yards should the government not come to a speedy resolution.

"You started seeing stockpiles pop up all over the place, where even small trucking companies and construction companies were stockpiling gravel to make sure they don't run out," McLeodsaid Friday.

"Unfortunately, that has increased cost because it costs money to move the gravel, and then it costs money to pick up the gravel and move it to wherever the construction is."

• MORE FORTMcMURRAYNEWS:Fort McMurray councillor at centre of conflict-of-interest investigation
• MORE FORTMcMURRAYNEWS:Wildfire evacuation alert lifted in Northern Alberta community
• MORE FORTMcMURRAYNEWS:All Fort McMurray wildfire insurance claims given a 'blanket' extension, Ceci says

McLeodsaidsuppliers have absorbed those extra costs. Hehasn't seen an increase in the price of gravel. He typically pays almost $50 a tonne, but he said that could change.

"I think the issue isn't the supply of gravel," McLeod said. "The issue is more one of regulatory certainty, where people know the supply of aggregate products is going to be consistent and keep the volatility out of the price."

But McLeodsaid needs forgravel have likely stabilized. Mostoilsandscompaniesaren't building new projects that require gravel and more than half of the 2,579 structuresdestroyed by the wildfire already have their foundations laid.

Connect with David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitter,LinkedInor email him atdavid.thurton@cbc.ca