Barrick fined for excess cobalt in BC river

Barrick Gold (NYSE: GOLD; TSX: ABX) has been hit with a $114,750 fine for its repeated, excessive discharge of toxic materials from the now-decommissioned Nickel Plate gold mine near Hedley, a small town in lower British Columbia. 

The decision comes after provincial inspectors found the former underground and open pit mine about 320 km east of Vancouver had been releasing mine waste containing high concentrations of cobalt into Hedley Creek, which flows into the Similkameen River. This occurred on 17 separate occasions between 2021 and 2023, the inspectors found.

Cobalt — while essential to human and animal life — can be harmful and even fatal when consumed in high concentrations. It is especially detrimental to invertebrate aquatic species, a key food source for fish in the salmon family.

In their report, the inspectors said that Nickel Plate tailings had average cobalt levels that were 1,155% above regulatory limits, and at one point, surged to 7,011% above the mine’s permit limit.

The violations “are considered as the most serious type of non-compliances” and “undermine the basic integrity of the overarching regulatory regime,” according to Jason Bourgeois, a director under the B.C. Environmental Management Act. 

As such, Bourgeois said the C$114,750 fine for all 17 incidents cited by B.C. inspectors “is necessary to deter Barrick’s future non-compliance with the cobalt limit.”

In explaining the penalty decision, the director said that exposing aquatic invertebrates to such high levels of cobalt could have a long-lasting impact on animal growth and reproduction.

Past incidents

Barrick, on its part, has been looking for ways to reduce the amount of cobalt in its mine tailings for years but has yet to find a solution. In 2022, it was given a $35,000 fine for a dozen similar infractions. At the time, the company claimed it was in the process of installing a new water treatment system at Nickel Plate.

The lack of improvements despite millions spent on studies, according to Barrick, is that the type of cobalt generated at the Nickel Plate mine is a complex compound, which it says is much more difficult to filter out than “free cobalt.” The company, though, had argued that this cobalt content is less toxic than free cobalt, and represents less of an environmental hazard.

The Toronto-headquartered miner also complained that B.C.’s regulatory limit for cobalt is “unreasonably low” and “is difficult to achieve.” The environmental ministry, however, noted that the company has had the opportunity to apply for a higher limit under its permit, but instead continued to breach the regulation.

Barrick has been in charge of treating effluent from the Nickel Plate mine site since placing it on care and maintenance in 1996, nine years after it first opened.