Matheson gold producer McEwen Mining contends there’s no cause for concern regarding its mine waste tailings storage facility that a nearby First Nation claims is causing environment harm and is a human health risk.
In a news release, McEwen responded to a lawsuit that was launched this month by Apitipi Anicinapek Nation (AAN) against the Toronto gold company for allegedly violating an impact benefit agreement (IBA) between the two parties.
McEwen said it’s “fully committed” to protecting the environment at its Stock Mill and that it will take the “appropriate steps” to “comply with laws.”
The company didn’t specify if there is any leakage at its tailings facility, which is one of the allegations levelled by AAN, yet to be tested in court.
McEwen acquired the Fox Complex property in October 2017 in a US$27.5-million deal with Primero Mining. The transaction included the Black Fox mine, two advanced exploration projects in Froome and Grey Fox, and the Black Fox mill, located on the Stock property. The mill site includes a tailings management area, 20 kilometres west of Matheson.
AAN is regarded as the closest First Nation community to the mill, which sits in the community's traditional land.
In the release, McEwen said its facility is provincially licensed to operate by the Ministry of Environment, Conservation and Parks (MECP) and is subject to “frequent inspection” by provincial and federal officials from agencies handling the environment, fisheries, natural resources and mining.
“We must adhere to stringent requirements for effluent treatment, including surface and groundwater quality monitoring and biological monitoring, and report results to the MECP,” the company said.
McEwen said it’s proposing additional monitoring “to ensure that we are fulfilling our obligations to all our constituents.”
In its statement of claim, AAN alleges historic and ongoing seepage of polluting material from the Black Fox mill tailings management facility has been investigated by the provincial environment ministry. The community said the MECP determined that there are environmental violations at the tailings site in contravention of sections of the Ontario Water Resources Act and the Environmental Protection Act.
AAN argues this leaked material may cause water quality problems in Reid and North Driftwood Creeks as well as to downstream aquatic life.
The community further claims McEwen has been aware of this issue for quite some time and didn’t take any remediation measures in a timely fashion.
Though contacted by Northern Ontario Business last week, the provincial environment ministry has yet to provide details on the state of the tailings facility and if any damage to the environment has occurred in the area.
The ministry has also not yet responded if any remediation orders were issued to McEwen, nor if the company has responded in a compliant manner.
AAN's lawsuit also mentions dispute over financial compensation, included in the original IBA, signed between AAN and then-Fox Complex owner Brigus Gold in 2011. It called for annual payments to the community of 25,000 common shares from Brigus.
McEwen argues that arrangement predates its arrival on the scene.
The company counters that Brigus shares and McEwen shares are “not interchangeable on a one-to-one basis and that we are not responsible for a shares that were not delivered by Primero during its ownership of Fox, among other things.”
McEwen did sign an impact benefit agreement with AAN (the community was previously known as Wahgoshig First Nation), according to a 2018 technical report prepared for McEwen by SRK Consulting.
McEwen said since it took ownership of the Fox Complex in 2017, $20 million worth of direct and indirect benefits to community members and businesses.
“We remain open to constructive dialogue with AAN on this issue and we hope to reach an amicable resolution,” the company said in the release.
To keep the line of communications open, McEwen mentioned it’s paid the salary for an AAN representative to act as a kind of community liaison to add transparency to its communication and to help develop new economic opportunities.
McEwen states that individual was given a work station at the site, but that person hasn't been seen for more than a year.
“Given there seem to be significant misunderstandings about environmental matters and transparency, we believe it would be highly beneficial to have an AAN representative present at Fox on a daily basis.”
