A judge has granted an order appointing a receiver to take control of assets at a gold mine closed after a massive slide of cyanide-contaminated ore in June, YukonB次元官网网址檚 justice minister said.
Tracy-Anne McPhee said in a statement Wednesday that the government had petitioned the Ontario Superior Court of Justice for the receiver after it lost confidence that Victoria Gold would take seriously the health, safety and environmental consequences of the failure at the Eagle Gold mine.
McPhee said PricewaterhouseCoopers Inc. would administer the assets and liabilities formerly under the control of Victoria Gold at the direction of the territorial government and under the supervision of the court.
B次元官网网址淚mmediate action is required to respond to the heap leach failure and its consequences for the land, water, people and wildlife in the Traditional Territory of the First Nation of Na-Cho Nyak Dun,B次元官网网址� McPhee said.
B次元官网网址淭he Government of Yukon is concerned that Victoria Gold Corp. does not possess the capacity itself and has failed to carry out the work that is required.B次元官网网址�
The minister said Victoria Gold B次元官网网址渉as failed to comply with several formal directionsB次元官网网址� issued by the government, which B次元官网网址渞equire specific measures to be undertaken to address human health and safety and environmental risks and impacts.B次元官网网址�
On June 24 the heap-leach facility at Eagle Gold mine failed, causing a slide of cyanide-contaminated ore and releasing millions of litres of cyanide solution used in the gold extraction process.
Yukon officials have said some water samples taken downstream have shown cyanide levels that B次元官网网址渟ignificantly exceedB次元官网网址� guidelines for aquatic life.
Brendan Mulligan, a senior Yukon government scientist, told a briefing last week that B次元官网网址渃lear evidenceB次元官网网址� of groundwater contamination had also been found, though samples with the highest concentrations of cyanide were being B次元官网网址渃ontained on site.B次元官网网址�
Health officials have said that contamination does not impact drinking water.
Both the territorial government and the First Nation of Na-Cho Nyak Dun filed applications in separate courts this week asking for a receiver to be appointed, something the company said in a statement it was opposing.
Chief Dawna Hope told a news conference earlier Wednesday that the court action was the only way the First Nation could ensure that steps necessary to mitigate the disaster would be taken.
She said Victoria Gold was failing to do what was needed to protect land and water from the cyanide.
B次元官网网址淭his is unacceptable. Immediate steps are needed to address the millions of litres of toxic cyanide and other contaminants spreading from the mine site,B次元官网网址� she said.
B次元官网网址淓very mitigation measure must be implemented to protect the lands, waters, fish, wildlife and the people impacted by this disaster. We have no confidence that Vic Gold is in a financially stable enough position to repair the environmental damages its failures have caused.B次元官网网址�
McPhee said the territorial government has entered into an agreement with the receiver to advance the money required to undertake mitigation work, which will be treated as debt to be prioritized over others owed by Victoria Gold.
At the First NationB次元官网网址檚 news conference, consultant Cord Hamilton estimated the cost of cleaning up the spill would be B次元官网网址渟omething in the magnitude of order of $100 millionB次元官网网址� on top of the cost of closing and remediating the mine.
The Yukon government has previously said it has $104 million in bonds to cover remediation costs if the mine were to cease operations.
Victoria Gold CEO John McConnell did not respond to a request for comment.
The mine is located about 400 kilometres north of Whitehorse, on the traditional territory of the Na-Cho Nyak Dun, which has called multiple times for Victoria Gold to be removed from managing the cleanup.
Bill Slater, an environmental consultant working with the First Nation, told the news conference that there is not enough storage at the mine to contain the contamination and that water treatment has been ineffective.
Earlier this month the Yukon government said 68 dead fish were found following a discharge of treated water from the site.
B次元官网网址淭he lack of effective water treatment also means that existing storage on site is almost full. That includes the dynamic storage that they created by starting to pump solution back onto the heap again on July the 14th,B次元官网网址� he said.
B次元官网网址淚f not addressed, this lack of storage could lead to discharge of contaminated solution directly.B次元官网网址�
The nation has previously called for a public inquiry to look into B次元官网网址渇ailures that caused this catastrophe and ensure it never happens again.B次元官网网址�
Slater said the government has ordered the company to build more groundwater collection wells, but that has not happened.
The receiver is not Victoria GoldB次元官网网址檚 only legal challenge.
A Vancouver-based law firm has also filed a proposed securities class-action lawsuit against Victoria Gold, alleging the company made misleading statements regarding the safety and environmental practices at the mine, particularly concerning its heap leach facility.
The territorial governmentB次元官网网址檚 petition for a receiver was filed in Toronto, where Victoria GoldB次元官网网址檚 corporate office is located, while the First Nation filed its application in Yukon Supreme Court.
The First NationB次元官网网址檚 petition says the disaster is still unfolding and is impacting B次元官网网址渢he inherent, constitutional and treaty rightsB次元官网网址� of the First Nation.
It says the companyB次元官网网址檚 attempts to contain the cyanide have been inadequate and it has refused to comply with government orders.
It says the company owes the First Nation more than $750,000 in royalty payments under the agreement that permits the mine to operate.
Those allegations had not been heard in court before the decision on the territorial governmentB次元官网网址檚 application was made.
