Court finds juniors guilty in tailings spill incident

Toronto-based Matachewan Consolidated Mines (TSE), its President Richard McCloskey, and Goldteck Mines (TSE) have all been convicted in Ontario Court in connection with a tailings spill from an inactive gold mine site near Elk Lake, Ont.

The two companies, found guilty of an offence under section 16(1) of the Ontario Water Resources Act, face a maximum fine of $700,000, or $100,000 per day. McCloskey, who was convicted of one count under section 147a of the Environmental Protection Act, can be charged up to $10,000.

Sentencing is scheduled for Aug. 20 in Sudbury, Ont.

Justice Ralph Carr heard that, on Oct. 17, 1990, the southwest wall of the tailings dam at the old Matachewan mine collapsed, discharging an estimated 130,000 cubic metres of tailings and water into Davidson Creek. After the spill, the Ministry of the Environment (MOE) provided alternate water supplies to affected residents.

“This unfortunate incident had a devastating impact both on area residents and the environment,” said Environment Minister Ruth Grier. “This conviction should convince those responsible for mining operations that they must take every precaution to prevent such spills from occurring in the future.” Earlier this month, Royal Oak Mines (TSE), which holds an option to mine the Matachewan property, was cleared of any liability in connection with the spill. Goldteck Mines held an option to treat the tailings.

Although McCloskey was unavailable for comment, Michael Leahy, a director of the Northern Prospectors Association based in Kirkland Lake, Ont., said he was sickened by the outcome of the trial.

“I’m appalled to see them get hammered the way that they did,” Leahy told The Northern Miner. “The book was thrown at these guys in a case that was not clear-cut. It was as much an accident as anything.”

Leahy said the verdict has ramifications for the rest of the mining community and for Ontario industry as a whole.