NEWS 

MINING INDUSTRY LEAVES FEDERAL GOVERNMENT WITH MULTI-MILLION CLEAN UP BILL

Canadian Institute for Business and the Environment - 08 January 2001 - Open a mine. Make your profits and run - or go bankrupt. That is the business of the dark side of the mining industry in Canada. Many good mine operations don't do that. But many do. The latest is the Royal Oak Mines It went bankrupt after running a successful mining operation near Yellowknife, NT. The Canadian government's Department of Indian Affairs and Northern Development (DIAND) had budgeted taxpayers' money to clean up Royal Oak Mines acids and toxics left behind from the gold leaching processes. However, now DIAND has reduced its overall operation budget by one-third. The cuts will effect the cleanup of a tailings pond leaking cyanide into the watershed at Colomac mine, and postpone research on a disposal solution for 270,000 tonnes of poisonous arsenic trioxide contained underground at Giant mine. The government plans to deal with the leaking Colomac ponds by pumping the tailings into a new settling pond after the tailings have been treated with ferric sulfate to help precipitate the cyanide. The federal government hopes that sunlight and wind action will eventually break down the cyanide in the open pit. The arsenic problem at the Royal Oak Giant Mine remains more complex, with the deadly substance sitting dangerously close to the city's drinking water supply. Arsenic Trioxide is a naturally occurring by-product of the gold recovery process, and even an aspirin-sized dosage is fatal to humans. In the early days of the mine, arsenic was put into 45-gallon drums and simply dropped down abandoned mine shafts. Once groundwater began to carry the poison into the drinking water, the mine was forced to store the waste in underground containment chambers. The problem did not go away, however, as harsh northern conditions cracked the containers. Currently, pumps run continuously to keep groundwater from entering and flooding the chambers. Though DIAND will spend $2 million on surface remediation at Giant this year, this figure is only a small part of the entire clean up, which even conservative estimates predict to be upwards of over $200 million. Both Giant and Colomac mines were owned by Royal Oak, a now-bankrupt company of ill repute that has left a string of environmentally disastrous mine sites across Canada. Source, MiningWatch Canada, Suite 508, City Centre Building, 880 Wellington St., Ottawa, Ontario K1R 6K7, tel. (613) 569-3439, fax (613) 569-5138, e-mail: canada@miningwatch.ca . Visit their website at http://www.miningwatch.ca/ .