Key Points
- PwC secures $105M to fund Eagle Mine cleanup.
- Water containment ponds near capacity, raising environmental concerns.
- Leach pad failure prompts Yukon to push for tighter oversight.
PricewaterhouseCoopers’ (PwC) borrowing ceiling has been increased to $105 million by the Ontario Superior Court of Justice in order to finance the environmental rehabilitation of Victoria Gold’s Eagle Mine in Yukon. An estimated $100 million to $150 million will be spent on cleanup.
Court approves $105M borrowing limit for Eagle Mine cleanup
Additionally, PwC can now sell non-core assets without further court clearance thanks to the court’s order, which was granted Monday. After a devastating heap leach pad breakdown at the mine in June, PwC, the court-appointed receiver, is in charge of the financial restructuring and environmental cleanup.
In a Nov. 29 report, PwC cautioned that the site’s temporary containment ponds, which are storing 309,000 cubic meters of contaminated water close to capacity, are under stress.
According to the North Miners, storage restrictions will continue until authorities give their approval for the discharge of treated water.
Final laboratory testing is being conducted to confirm regulatory compliance as part of continuing upgrades to the mine’s water treatment system. PwC stated, “We are working to ensure continuous operation through the winter,” however the severe winter weather may present new difficulties.
PwC stressed in a Thursday update that the recently authorized borrowing cap is essential to preventing additional environmental harm.
4 million tonnes of ore and a cyanide-laced solution were spilled in June due to a heap leach pad failure, which caused environmental damage and Victoria Gold’s financial collapse.
After becoming frustrated with PwC’s tardy cleanup response, the Yukon government requested a court order designating the firm as receiver.
According to PwC’s March filings, Victoria Gold owes $82.7 million to over 400 unsecured creditors and $232.5 million to secured creditors. The day following PwC’s appointment as receiver, the company’s board of directors resigned.
Heap leach pad failure triggers cleanup and financial collapse
The cause of the heap leach failure is being looked at independently. It is anticipated that its conclusions would direct regulatory changes and strengthen oversight of related initiatives.
Due to the disaster, Yukon operators and investors are paying more attention to heap leach mining operations.
The mine’s future is still out in the air, even as PwC concentrates on stabilizing the site and minimizing environmental harm. A potential mining activities resumption has not been ruled out by the Yukon administration.
But the mine is located on the traditional territory of the First Nation of Na-Cho Nyak Dun, which has demanded stricter regulation and a stop to mining operations. As cleanup activities continue, PwC’s main goal is to stabilize the site and stop more environmental damage.
