What happens when one is away…
The Yukon Conservation Society mining analyst was away for most of May and the first week of June and a lot happened in Yukon mining circles. And we mean a lot. Here’s a rough summary of the major events. And remember, dear gentle reader, this is just the stuff that is in the public domain.
The Minto Mine went bankrupt (if you hadn’t heard), and now the Yukon Government department of Energy Mines and Resources (EMR) is responsible for on-site care and maintenance. Unfortunately, there isn’t enough financial security provided by the company to EMR to do full closure and remediation. EMR holds about $75 million, but had requested another $18 million on top of that which wasn’t forthcoming prior to the bankruptcy. About $7.5 million of the existing security is for care and maintenance duties prior to actual closure and reclamation being started, but EMR will burn through that within a year. EMR is of the opinion that they will be able to sell the mine to another mining company. Given the water situation on site and the amount of security that the new mining company will have to provide to top up what has been spent and what wasn’t provided, this is highly unlikely.
The Yukon Government is taking the Yukon Environmental and Socio-economic Assessment Board (YESAB) to court basically because they think YESAB’s recommendation on the Michelle Creek quartz exploration project that it not proceed and needs to be redone because their isn’t enough baseline data. Note that this is the first project assessed by YESAB in the area managed by the Peel Watershed Regional Land Use Plan. If the Government does the unlikely and wins in court, every future YESAB recommendation could be challenged by anyone on the basis that there isn’t enough baseline data. Also, the Government had two chances to raise this issue – once when they intervened, and if they had chosen to accept/reject/modify the YESAB recommendation.
Energy Mines and Resources (EMR) got a new Deputy Minister (DM), which in itself isn’t unusual but where the individual came from is. Prior to the DM appointment they were the chair of the board of Yukon Environmental and Socio-economic Assessment Board. So one day they were the chair of the entity that recommends whether mining project should proceed or not, the next the DM of arguably the most pro-mining bureaucracy in the territory. It does raise concerns over why there isn’t a cooling off period when individuals move between these positions.
A mining company is doing quartz exploration work near Cowley Creek, a rural subdivision of Whitehorse. There’s been a lot of mess created, so bad in fact that even EMR mining inspectors found problems at the site. These ranged from gouging the road to having drill fluid seep. None of the current work has gone through a YESAB assessment as it is all considered Class One. It should be interesting to see the community response if the company attempts to do Class Three work and has to go through the YESAB process. And if they have to get a water licence from the Yukon Water Board, well, the sparks could certainly fly.
Victoria Gold, currently the Yukon’s only operating hard rock mine (remember, Minto has gone bust and Keno is dormant), could be heading to court due to some environmental unpleasantness that happened over a year ago. Basically, the Yukon Government are being the good guys this time around and alleging that the mining company violated its quartz mining and water licence. The big issue is they allegedly did not contain a cyanide solution spill. Should be interesting to see if this actually proceeds through the legal system, or whether it is solved out of court, and thus out of the public eye.
Now the following happened prior to the Mining Analyst going away, but it’s worthy of inclusion as it doesn’t seem to be getting much traction with the media. Little Salmon Carmacks First Nation has requested that the Yukon Water Board convene a public hearing to force the entity in charge of the Mt Nansen mine cleanup to actually meet the conditions of the water licence. Contaminated water is currently being released, harming the surrounding environment.
As a concluding note, the Mining Analyst greatly enjoyed their time off, but shudders to think what else could have happened in Yukon mining environmental circles had they been gone longer.
