Fort McMurray and oilsands could face gravel 'crisis,' trade group says

Fort McMurray faces a gravel crisis that could affectthe pace of the wildfire rebuilds and construction within theoilsands region, according to an industry group.

Though often ignored, gravel is a critical commodityneeded for Highway 63 expansion, for supplying concrete tooilsandsleases and for rebuilding more than 2,500 homes destroyed in the FortMcMurraywildfire.

That was the message the chairman of the Fort McMurray Aggregate Users Group had for municipal council on Tuesday night.

"This crisis is going to have a negative affect on all infrastructure development in, and north of, Fort McMurray," said Dan Fouts. "A crisis which could have been avoided."

Any delay transitioning to a new mine could impact building costs by 30 per cent, said Fouts. The price uncertainty has led to some contractors considering closingup shop, he said.

The public gravel pit at Susan Lake, 85 kilometres north of Fort McMurray, has been depleted and is scheduled to close in April.

Mikisew North has been awarded the contract to manage the new gravel source at the CoffeyLake pit, 105 kilometres north of Fort McMurray. The Fort McMurrayAggregate Users Group fears the new pit won't be ready by the time the old one closes.

'False and defamatory' statements

In a letter to Environment Minister Shannon Phillips in February, the group said it is concerned there is no "plan B" should the replacement pit not be ready. The group said it received no response to the letter or to other repeated appeals for information from Phillips.

Press secretary for the minister, Matt Dykstra, did not reply to a series of questions CBCasked by email. But Dykstradid saythe environment and parks ministry is aware of the concerns andis reviewingMikisew North's plan after receiving additional information from the company.

• MORE FORTMcMURRAYNEWS:Fire, explosion at downtown Fort McMurray restaurant was arson, RCMP say
• MORE FORTMcMURRAYNEWS:Fort McMurray restaurant that started it all puts a cork in its B.C. wine boycott
• MORE FORTMcMURRAYNEWS:Fort McMurray lawyer urges insurers to extend wildfire claim deadlines

Mikisew North declined to do an interview with CBC. But in an email statement the company's marketing manager, Karli Stewart, said it did call on the Fort McMurray Aggregate Users Group to retract the "false and defamatory" statements made in its letter to the minister.

The First Nations owned company said it has followedall provincial rules governing the development of mines.

The province is stalling business

Coun. Jeff Peddle said he was disappointed to hear about the delays. He andother councillors unanimously supported the Fort McMurray Aggregate Users Group's request for a letter of support to be sent to Phillips.

"For me, it is frustrating because the first thing (government) can't do is stall business," Peddle said. "And this is stalling business."

Mayor Don Scott said he and his council will followup with the environment minister.

"This is critical for the region and we are going to be raising this issue," Scott said.

Follow David Thurton, CBC'sFort McMurraycorrespondent, onFacebookandTwitter, email him atdavid.thurton@cbc.ca