A settlement has been reached in a dispute involving Pegasus Gold (PGU-T), the U.S. Environmental Protection Agency, the state of Montana and local natives over water quality at the Zortman gold mine in north-central Montana.
Without ascribing liability, the agreement resolves all pending claims against the company for alleged non-compliance with water quality regualtions. Pegasus and its operating company, Zortman Mining, have agreed to pay US$2 million to the federal government and the state of Montana, and create a US$1-million trust fund for the Fort Belknap tribes to finance projects identified by the community council.
The companies have also agreed to finance three supplemental environmental projects, which are expected to cost US$1.5 million. These projects, which must be completed in three years, include improvements to water supply and distribution systems for two reservations, an independent health study of residents of the reservation, and an inventory of the reservation’s aquatic resources.
Werner Nennecker, president and chief executive officer for Pegasus, said the agreement is the result of nearly three years of technical studies and negotiations. The agreement clears the way for federal and state agencies to issue permits for the Zortman Extension project at the mine, which contains 61.3 million ton of proven and probable reserves grading 0.02 oz. gold per ton.
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