About 4 million metric tons of cyanide-laden rock collapsed at Eagle on June 24, releasing around 2 million metric tons of contaminated material into the surrounding environment, extending beyond the mine’s containment zone.
The mine, which is situated on the traditional territory of the First Nation of Na-Cho Nyak Dun, has since become the center of a contentious battle between the mining company and the Yukon government. The company has since been managing the cleanup, but its efforts have been criticized by both the government and the First Nation.
The Globe and Mail notes that the government has already stepped in to take over parts of the environmental mitigation process after Victoria Gold failed to meet certain directives, including the construction of a critical safety berm.
Victoria Gold said in Wednesday’s press release that it would oppose receivership.
While the company is committed to moving forward at Eagle, stakeholders’ frustration is growing.
The First Nation has requested a public inquiry to investigate the failures that led to the incident, and to ensure similar disasters do not occur in the future; it also wants Victoria Gold leadership to be removed from cleanup efforts.
PwC has been appointed the receiver for Victoria Gold, and will now be responsible for mitigation work at Eagle.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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