The cleanup operation at the former Eagle Mine has shifted to a critical phase, focusing on groundwater monitoring and contamination control. This development follows the recent takeover of Victoria Gold by PricewaterhouseCoopers (PwC). The takeover came after the Yukon government expressed dissatisfaction with Victoria Gold’s ability to handle the aftermath of a significant environmental incident at the site.
In a briefing last Friday, Erin Dowd, the territory’s mine licensing manager, provided updates on the ongoing remediation efforts. According to Dowd, PwC, in collaboration with environmental management services firm Parsons, is spearheading the installation of five groundwater monitoring wells at the Eagle mine site. These wells are designed to provide a clearer understanding of groundwater conditions and to capture any contaminated water if necessary.
“One of our primary focuses is getting a better understanding of groundwater and capturing that water, if necessary,” Dowd said. She also mentioned that the team is exploring the construction of water storage ponds to manage contaminated water effectively. This effort marks a significant step in addressing the environmental risks posed by the mine’s recent failure.
The renewed focus on groundwater monitoring and contamination control follows a catastrophic incident two months ago when a failure in the mine’s heap leach pad triggered a landslide. The landslide released millions of tons of ore and cyanide-containing solution into the surrounding environment. The incident prompted the Yukon government to take swift action, appointing PwC as the receiver for Victoria Gold, given the company’s inability to manage the cleanup independently.
The impact of this decision was immediate. Just days after PwC took over, the entire Victoria Gold board resigned, and PwC dismissed the company’s CEO, John McConnell. Despite these changes, the Yukon government has emphasized that it does not intend to shut down the company permanently. Instead, there is a possibility that mining operations at Eagle could resume in the future, once the site is deemed safe and environmentally sound.
Victoria Gold and PwC have remained silent on the situation since the accident, declining to respond to media inquiries. However, the focus now is on assessing the extent of groundwater contamination and implementing effective remediation measures.
Dowd elaborated on the installation of the five groundwater wells, which are being set up by CoreGeo, a contractor specializing in environmental assessments. These wells are strategically placed at a safe distance from the slide area, which remains unstable. The data collected from these wells will be crucial in determining the level of groundwater contamination and guiding future cleanup efforts.
Lauren Haney, the deputy minister for Yukon’s Department of Energy, Mines, and Resources (EMR), stressed the importance of these wells in understanding the full extent of potential groundwater contamination. The wells will play a pivotal role in the ongoing efforts to manage and mitigate the environmental impact of the Eagle mine incident.
To ensure that water treatment methods are properly implemented, representatives from Parsons, the First Nation of Na-Cho Nyak Dun (FNNND), and the Yukon government have been collaborating closely. The Eagle mine is located on the traditional territory of the FNNND, which has been vocal in calling for an independent inquiry into the accident and a temporary halt to all mining activities in the area. Despite these concerns, Premier Ranj Pillai has stated that while the government is not prepared to stop mining entirely, it is considering pausing certain activities until the situation is fully assessed.
In addition to groundwater monitoring, other essential remediation tasks are being carried out at the site. This week and next, Pelly Construction, a contractor hired for the cleanup, is building a protective berm and access road. The team is also exploring safe locations for the additional storage of contaminated water, which is essential to prevent further environmental damage.
These efforts are particularly urgent given the approaching winter in Yukon, where temperatures can drop significantly. Over the next 80 to 90 days, the remediation work will be in full swing, with the goal of stabilizing the site before the cold weather sets in. The Yukon government has allocated C$50 million to PwC for this phase of the cleanup, although the total cost of the larger remediation effort is estimated to be between C$100 million and C$150 million, according to court documents related to the receivership.
Haney mentioned that the government has not yet drawn on the C$104 million surety bond held with Victoria Gold for the site’s remediation, although this option remains available if needed. She explained that the bond amount was determined based on the site’s conditions and liabilities before the heap leach pad failure. As the situation evolves, the government will reassess the financial requirements for completing the cleanup.
A timeline for the full remediation of the Eagle mine site remains uncertain, according to Dowd. However, the Yukon government is committed to ensuring that all necessary steps are taken to restore the site and prevent any further environmental harm.
The financial implications of the cleanup are significant. The Yukon government currently owes contractors approximately C$300,000 for work done at the Eagle site. Haney noted that this figure may change as additional remediation tasks are completed, and the government continues to monitor the financial situation closely.
In response to calls for accountability, the Yukon government has finalized the terms of reference for an independent investigation into the Eagle mine accident. These terms have been sent to the FNNND for their review and feedback. John Streicker, the minister of EMR, stated that the purpose of the review is to thoroughly investigate the causes of the accident, ensure that similar incidents do not occur in the future, and improve the territory’s regulatory and licensing practices.
Potential board members for the independent review panel have been identified, and their names are expected to be announced soon. This panel will play an important role in providing an unbiased assessment of the incident and recommending measures to enhance safety and environmental standards in Yukon’s mining sector.
Victoria Gold has remained largely silent about its current activities and financial status since the company was placed under receivership. According to its most recent financial report, the company had C$232.5 million in debt as of March 31. In a rare interview with the media, McConnell, the former CEO, mentioned that the company had enough financial resources to continue operations for four to six months but would likely require additional financing after that period.
When asked whether the Yukon government is considering a partnership with PwC to potentially restart mining operations at Eagle, Haney clarified that the current focus is solely on the remediation efforts. Any discussions about restarting the mine will depend on the successful completion of the cleanup and the site’s environmental safety.
