There has been little reaction from the Yukon government to Friday’s bombshell announcement from Victoria Gold Corp. that it may not be able to afford to reopen or rehabilitate the Eagle Mine.
The announcement confirmed widespread rumours the company is facing financial ruin following the June 24 landslide at its site, about 90 kilometres northeast of Mayo.
The mine’s heap leach pad collapsed, triggering a landslide that has caused extensive damage.
There are concerns the collapse may have dumped an unknown amount of cyanide into the environment, especially the groundwater system – and that future slides could occur.
One water sample taken more than a week ago detected cyanide downstream from the mine, but none has been found since.
This morning, The Yukon Star requested an interview with John Streicker, the minister of Energy, Mines and Resources, to discuss the company’s grim announcement.
The request was refused.
“The deadline you have provided is neither reasonable nor achievable,” a cabinet spokesperson told the Star.
“The government’s approach was provided in Thursday’s tech briefing. In short, the Government of Yukon is committed to ensuring actions are taken to protect the environment following the heap leach failure.
“The company currently remains on the site and the Government of Yukon has been issuing directions to ensure appropriate responses are taken.”
The spokesperson reiterated points the government has been making since the incident.
“Victoria Gold Corp. has provided $104 million in financial security owed for the site. We collect financial security from all major mines to pay for reclamation and closure in the event of an operator failing to complete this work,” she said.
“The Yukon government may also use financial security in other, limited circumstances, as set out in the Quartz Mining Act and Waters Act. Alongside our partners at the First Nation of NaCho Nyäk Dun, we are working with Victoria Gold to better understand their concerns and protect the environment.”
The Yukon Party had a different perspective.
“The update from the company did not confirm any information that was not already known following technical briefings to the media,” the official Opposition wrote in a prepared statement this morning.
“The Yukon Party caucus is looking for concrete updates from the Government of Yukon and Victoria Gold Corp. about the next steps to address the government orders, the plan to determine what actually happened that allowed the accident to occur, and a plan from government to ensure it never happens again.”
The party noted in its statement, “The opposition parties still await a briefing by the Yukon government on the heap leach pad failure.
“We remain concerned about the impact on the thousands of Yukoners that depend on the mine, either as employees, contractors, or suppliers. The economic impact this may have on the Yukon is potentially significant.”
The Yukon NDP was considerably more direct.
“I’m deeply concerned to hear Victoria Gold saying they may not have the money to remediate the Eagle Gold Mine,” party leader Kate White, the MLA for Takhini-Kopper King, said this morning.
“What we’re seeing right now is Yukoners’ worst fears playing out in real time. I sincerely hope that Victoria Gold is able to do the right thing and clean up the mess that they are responsible for.”
White added, “Situations like these are exactly why the Yukon needs new and tougher mining legislation. We’ve seen time and again that Big Mining companies don’t pay for the cleanup after a disaster.
“Yukoners and Canadian taxpayers do. This is unacceptable.”
