Renabie first to test Ontario’s new closure rules

Ontario’s first postwar gold mine, the Renabie mine about 200 km west of Timmins, Ont., is about to register another milestone — the first mine closed under the province’s new rules of the revised provincial Mining Act.

A significant part of the act’s close-out rules deals with financial assurances to fund decommissioning, and, most important, post-closure monitoring and remedial work (if necessary).

Beyond paying the costs of cleanup and site restoration, Renabie’s operators must also post a “financial assurance” in the form of a bond, an irrevocable letter of credit or some such instrument convertible into cash. This financial assurance would ensure funding of unforeseen post-closure accidents. Such events could include a tailings dam breach, a crown pillar collapse or other occurrences.

In the case of Renabie, International Corona (TSE) and American Barrick Resources (TSE) had hoped financial assurance could take the form of “self-assurance,” in which the mining companies, as continuing corporations, would financially commit to covering any such problems into the future. But Michael Klugman, director of the mining ministry’s Mineral Development and Rehabilitation Branch, said self- assurance is not acceptable. “There is no such thing as self-assurance,” he told The Northern Miner. The ministry can’t accept it because companies can go bankrupt or be taken over and the corporate aggressor, perhaps foreign, might simply renege on the commitment.

International Corona and Barrick are fortunate that the relatively small 5.5-million tonnes of tailings do not generate acid. Acid can leach out metals that pollute watercourses. In fact, it is generally agreed that acid generating tailings and waste dumps are the biggest environmental headache the mining industry has.

“We were happy to find out it (the Renabie tailings pond) was not generating acid,” said Bill Napier, Corona’s director of environmental services. Acid generation might have meant long-term remedial work. As it is, the Renabie close-out probably will not entail such costly procedures. The total cost of the closure, not including the financial assurance, is about $3.5 million, according to Napier.

Although a few weeks’ worth of ore is yet to be milled, decommissioning is under way. The $3.5 million will return the site to a near-pristine form. That means contouring any pits, taking out roadways, vegetating tailings surfaces and so on. The tailings have been physically and chemically analyzed, monitoring sites have been set up, and a tailings stabilization program has been drawn up.

Soon, the shaft collar will be capped and the mill and other surface buildings destroyed in a controlled burn. As well, the operators must stabilize the crown pillar, either by blasting it and filling the void or by pouring a concrete cap.

All this is contained in a proposal the operators have submitted to the provincial Ministry of Northern Development and Mines. This document is the closure plan required by the new Ontario Mining Act. Final regulations on the mine closure are expected to be established by mid-August.

Once received by the Ministry of Northern Development and Mines, the plan is sent to several ministries — Natural Resources, Environment and Labour — for comment. These ministries must submit responses within 21 days. Other than the issue of financial assurance, the Renabie mine closure has gone smoothly so far, according to both Klugman and Napier.

“We have experienced some teething problems,” Napier said, “but the (government) agencies have been very receptive.” (The process began in March this year and should be completed by early fall.)

Said Klugman: “Both sides are recognizing the hurdles the other side has.” Olav Svela is the editor of The Northern Miner Magazine.