Ontario implicates officers in Matachewan spill

Responsibility for a spill that released tonnes of mine tailings into the Montreal River last October rests not only with the companies involved, but also with their chief officers, according to recent government orders. The Director of the Ontario Ministry of the Environment has served orders against Matachewan Consolidated Mines (TSE) and Goldteck Mines (TSE). Most recently, Pamour (TSE) was issued a notice of intention that an order is forthcoming.

To the surprise of those involved, the ministry has also implicated Pamour’s former chief executive, Richard Needham, and two officers of both Goldteck and Matachewan Consolidated.

“This is potentially one of the biggest things ever to hit the Canadian mining industry.” said Richard McCloskey, president of Matachewan Consolidated. “The idea of a ministry charging individual directors and officers is a major change in ideology — they’re trying to break through the corporate veil of protection.”

A successful case against individuals implicated in the Matachewan spill, which many consider a fluke accident, will steer risk-wary directors and officers away from the mining industry in future, McCloskey warned

The Ontario Mining Association refused to comment on the developments, saying it is not yet fully aware of the situation and its ramifications.

On Oct. 17, 1990, the 20-hectare tailings pond near Matachewan, Ont., overflowed after a beaver dam burst. An estimated 200,000 tonnes of tailings containing lead and traces of cyanide, arsenic, and mercury spilled into the Montreal River, which flows southeast to connect with the Ottawa River system near Temagami, Ont.

Those named in the ministry order are required, among other things, to clean up the 40,000 cubic metres of tailings still lodged in Davidson Creek, which flows from the tailings dam site into the Montreal River. Although the contaminants are not likely to spread while the ground is frozen, officials are worried that spring runoff may remobilize tailings in and around the creek.

Matachewan Consolidated, the original mine owner, closed the mine in 1954 after producing over one million grams gold. Through 41.7% owned Giant Yellowknife Mines (TSE), Pamour holds the mining rights to the abandoned mine site, while Goldteck has recently dropped its option to treat the tailings.

McCloskey has requested a stay of the order against his company, arguing that since the Crown now owns the land, the Crown should be responsible for the cleanup.

But if the stay is not granted, cleanup bills could run into the millions, he said.

Pamour, which is consulting its solicitors, claims that since it has no right or interest in the tailings, it should not be held responsible for the spill. “The environmental problems and tailings overflow were in no way due to any of Pamour’s activities in exploring these mineral rights,” the company said.

According to The Northern Miner’s records, Pamour mined the crown pillar at Matachewan in 1979, but shipped the ore to the Pamour mill at Timmins, Ont. In 1986, a private company, Gold Spinner Resources, treated the mine tailings at a rate of 11,000 tonnes per month.