Toronto-based Curragh (TSE) has been charged with criminal negligence causing death and manslaughter in connection with an explosion at the Westray coal mine in Plymouth, N.S., last year.
Charged with the same offences are former mine manager Gerald Phillips and former underground manager Roger Parry. No charges have been laid against any head office employees, officers or directors.
On May 9, 1992, 26 miners were killed when the mine exploded. The bodies of 11 men have yet to be recovered.
In light of the charges, Curragh says it will “turn over the keys to future development of the mine to whomever the government officials decide should be in charge of the project.”
But observers say it is unlikely a private company would be willing to take over a mine when allegations of unsafe practices have been made. Since the explosion, Curragh has spent $15.3 million to maintain the mine and seek approval for plans to rehabilitate it, recover the dead bodies and resume mining.
The charges come just weeks after the zinc-lead miner suspended operations at its Faro mine in the Yukon and filed for court protection from its creditors, who are owed about $221 milllion.
Curragh’s survival depends on financing, including a $34-million loan guarantee from the Yukon government to develop new ore at Faro and the completion of a $50-million private placement of preffered shares. The company has until May 3 to file a financial plan with the courts. On May 25, Phillips, Parry and lawyers for Curragh will appear in court to hear the criminal charges, which carry a maximum penalty of life imprisonment.
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