Atlantic Mining, a subsidiary of Australia’s St Barbara in Nova Scotia, is facing a sizable cleanup bill for its closed Touquoy gold mine. The company needs to pay C$79.9 million ($60 million) by next Tuesday to meet a reclamation bond requirement set by Nova Scotia’s environment ministry. However, Atlantic Mining is disputing this amount in Nova Scotia’s Supreme Court, arguing that the mandated cleanup regulations are excessive, impractical, and impossible to achieve.
The company still owes C$38.7 million of the bond, and it’s in a difficult position. Atlantic Mining has stated that it will require financial assistance from its parent company, St Barbara, to secure the necessary funding if it is forced to pay the bond. Andrew Strelein, CEO of Atlantic Mining, has emphasized the need for constructive dialogue with the government to establish more realistic guidelines and a feasible timeline for reclamation. “Our goal is to engage in constructive dialogue with the government to establish practical guidelines and a feasible timeline for reclamation,” Strelein said.
The outcome of this legal dispute could significantly impact future mine cleanups in Nova Scotia and potentially across Canada. If the court rules in favor of Atlantic Mining, it may encourage other mining companies to challenge environmental regulations they consider too strict or unworkable. On the other hand, a ruling in favor of the province could strengthen the enforcement of environmental laws and set a precedent for holding companies accountable for their environmental responsibilities.
The provincial environment ministry and local environmental advocates argue that stringent regulations are necessary to protect Nova Scotia’s groundwater, as it’s a low-lying province with a high risk of contamination. They are concerned that without strict guidelines, mining companies could leave behind environmental damage with long-term impacts on local communities and ecosystems.
The Ecology Action Centre has criticized St Barbara for what it sees as a pattern of attempting to evade environmental responsibilities. The organization highlights that the company has faced 23 provincial and three federal violations of environmental laws. Karen McKendry from the Ecology Action Centre expressed concern that Atlantic Mining might not comply with the required standards, given its track record. “Ecology Action Centre is concerned that the company will not meet any standards required of them, given their track record,” McKendry stated. She also noted that a condition from the mine’s 2008 environmental assessment, which required the company to provide funds to the province to protect land near the mine for conservation purposes, has yet to be fulfilled.
Amid these accusations, Atlantic Mining is seeking to renegotiate the terms of the mine closure, aiming for what it calls a more realistic and achievable agreement. Strelein argues that the conditions set by the environment minister are not only unrealistic but could also undermine the entire remediation process. “The conditions imposed by the minister of environment are not only unrealistic but could potentially undermine the entire remediation process,” he said. He added that the company is committed to cooperating with the government but finds it challenging to do so under the current circumstances.
The cleanup approval issued in March sets deadlines that extend to 2028 and includes strict water quality monitoring requirements. Atlantic Mining has claimed that these terms are impractical and do not consider the historical context of the site. In July, Environment Minister Tim Halman rejected the company’s appeal to ease the cleanup conditions. Halman emphasized that the criteria were based on the company’s own submissions and were crucial to protecting Nova Scotia’s groundwater. He also warned of the environmental risks associated with any delays in the cleanup process.
Strelein highlighted the financial strain these requirements are putting on the company and reiterated Atlantic Mining’s commitment to reclamation. He argued that the company is already making significant investments in reclamation efforts and should not be accused of trying to avoid its responsibilities. “We are pioneering mine reclamation in Nova Scotia, and this quarter alone, we’re investing C$7 million into our reclamation efforts,” Strelein said. “It’s frustrating to be accused of delaying tactics when we are fully committed to completing the work correctly and in a timely manner.”
