Goldteck cleared at Matachewan

The Ontario government has agreed to release Goldteck Mines (TSE) from an order relating to the Matachewan mine tailings spill in northeastern Ontario.

In return, Goldteck has voluntarily contributed $40,000 to the tailings clean-up and has agreed to drop its appeal of the order.

In October, 1990, tailings from the Matachewan mine, a former gold producer, washed into the Montreal River. Since then, the Ontario government has spent about $1.75 million building dams, cleaning up the tailings and monitoring water supplies.

Goldteck’s order required the company to undertake studies related to the spill, ensure a potable water supply for residents, and monitor water quality in the Montreal River.

Orders issued under the Environmental Protection Act against Matachewan Consolidated Mines (TSE) and Royal Oak Mines (TSE), which were also implicated in the spill, still stand. Criminal charges have also been laid against all three companies and two of Matachewan’s officers, but a court date has not yet been set.

To raise money for the companies’ legal fees, the Northern Prospectors Association (NPA) has set up the “Matachewan Defense Fund” and is soliciting contributions from the mining industry. Director and past president Michael Leahy says he is disappointed with Goldteck’s decision to settle rather than fight the order. Although Goldteck held an option to treat the tailings, it has always maintained that its activities could not have caused the overflow. “I’m appalled that Goldteck would buckle under to (Environment Minister Ruth) Grier’s eco-extortion when they believe they are innocent,” said Leahy. “We will stand up to Grier as long as it takes, even if we have to beg for help.” Leahy said the NPA had raised just over $1,000 since they started their campaign late last year.

By enforcing the orders, the government hopes to get back some of the money spent cleaning up the tailings and monitoring the effects of the spill, says Jim Deem, district officer

for the Ministry of the Environment. He added that there

is still work to be done at the site.

Matachewan Consolidated is also negotiating with the government to have its order dismissed, said President Richard McCloskey. But a spokesman for Royal Oak said that unless an irresistible settlement offer is made by the Crown, the company would prefer to defend itself through an appeal. The Matachewan mine, which closed in 1954, produced over one million grams of gold. Matachewan owns the abandoned mine site, while Royal Oak holds an option to mine the deposit. Goldteck dropped its option to treat the tailings three months after the spill.