Omai lawsuit dismissed

A class action suit brought against Cambior (CBJ-T) over the failure of the tailings dam at its Omai gold mine has been dismissed by the Superior Court of Quebec.

The suit, brought by the advocacy group Recherches Internationales Quebec, sought damages of $69 million on behalf of 23,000 residents downstream from the mine.

The mine, in central Guyana, is operated by Omai Gold Mines, ownership of which is shared by Cambior, with a 65% interest, Golden Star Resources (GSC-T), with 35%, and the Guyanese government, with 5%. A tailings dam at the mine failed on Aug. 19, 1995, releasing about 3 million cubic metres of waste water and sludge into the Essequibo River, Guyana’s principal inland waterway. The waste water contained an average of 28 parts per million of cyanide.

Following the spill, residents downstream of the mine delivered conflicting reports of its effects, including claims of skin irritation and burns, and dead jungle mammals. A Commission of Inquiry appointed by the Guyanese government found that the spill’s effects had been minor and discounted most of the reports.

In his decision, Justice G.B. Maughan said the High Court of Guyana was the appropriate venue for the action, because “neither the victims nor the action has any real connection with Quebec.” The court awarded costs to Cambior.

RIQ strategist Dermod Travis said the group might appeal the dismissal and was reviewing other courses of action, including the possibility of pursuing the suit through courts in Guyana. He said the Quebec venue was preferable, since class actions were available there. “Every recourse is being examined,” said Travis. “The issue [is] that the judge did say a class action was not available in Guyana.”

The dismissal effectively prevents RIQ from shifting to individual claims in Guyana, where civil suits must be brought within three years of alleged incidents.

Cambior said about 250 claimants had brought actions against Omai Gold Mines in Guyanese courts, and that the total claimed was under US$1 million, including a further 350 claims that are being pursued out of court.

RIQ’s Travis planned to continue pursuing claims against Cambior, saying “it would be our preference that Cambior discuss this outside litigation.”