Yukon Justice Minister Tracy-Anne McPhee says the territory’s government is still hopeful that mining can eventually restart at the site of the Eagle Gold mine disaster after its owner was ordered into receivership this week.
McPhee says mining remains an important part of Yukon’s economy, but “it must be done safely.”
McPhee and other government officials held a technical briefing to provide an update on what has been happening at the site now that Victoria Gold Corp. is in court-ordered receivership.
She says the receivership process provides a “pathway” to dig into the company’s finances and assets to be used to cover the environment mitigation work, but the Yukon government is advancing funds to cover “urgent work” in the meantime.
The mine uses a process called heap leaching to separate gold from ore. The ore is placed in a lined basin and is saturated with chemicals including cyanide.
According to government officials, the June 24 landslide at the site released four million tonnes of cyanide laced ore and may have allowed up to 300,000 cubic metres of cyanide and other chemicals to leach into the environment including local waterways.
McPhee says the decision to go to court to ask that a receiver assume the company’s work was not to put the company out of business, and the decision of Victoria Gold’s board of directors to resign was made “on their own.”
The minister says public safety and environmental concerns were not “being properly addressed by the company,” necessitating a receiver to step in and take control after the mine’s heap leach pad failed, causing a torrent of cyanide-contaminated material to escape the site in June.
First Nation likewise files receivership application
Also on Wednesday, First Nation of Na-Cho Nyäk Dun (FNNND) announced it filed its own application to have a third party take over company operations and oversee the clean-up of a toxic spill at the Eagle Gold mine.
Hope said Victoria Gold was failing to protect the First Nation’s lands and waters, which she described as “unacceptable.”
“This action in court is the only way that we can ensure the steps necessary to mitigate this disaster are being taken,” she said.
“We have no confidence that Vic Gold is in a financially stable enough position to repair the environmental damages its failures have caused, and Na-Cho Nyäk Dun has lost confidence in their ability to manage the response to this disaster.”
FNNND’s application, which was filed in Yukon’s Supreme Court on Aug. 13, asks for a third party to take control of the mine and follow steps ordered by the Yukon or Canadian government or other expert entities to “manage the mine site, enter into agreements that will help comply with government orders, engage with experts and purchase or lease equipment needed in the clean up.
It also asks that the third party have the power to “assign VGC into bankruptcy.”
The application further notes the company is behind in its payments to FNNND in excess of $750,000.
“(Victoria Gold) has suspended operations and has publicly announced that there is no assurance that it has the financial resources necessary to repair damage to equipment and facilities or remediate the impacts caused by the incident or restart production,” the application said.
