Richard Gleeson
Northern News Services

Yellowknife (Aug 18/00) - The water will be flowing into Con Mine for another six years, and so will the money.

Security for water-related environmental liability was increase from $1 million to $9 million under the Yellowknife gold mine's renewed water licence.

The licence was renewed in late July by Department of Indian Affairs Minister Robert Nault. The new licence runs from July 30 to July 29, 2006.

Under the new licence, Con-owner Miramar is required to put up $1.5 million security within 30 days of the issue of the licence and $1.5 million each year thereafter until $9 million is accumulated.

Security deposits are used to protect taxpayers from having to foot the bill for the restoration of mining properties, such as Colomac and Giant gold mines, that companies do not clean up.

During a public review of the licence, Dene Nation president Bill Erasmus said the security deposit for the mine should accurately reflect the cost of restoring the property.

Miramar estimated it will cost $7.6 million to restore the site, but wanted the current deposit of $1 million to stand for the term of the renewal. DIAND recommended the deposit be increased to $11 million.

The new licence limits Con to 2.1 million cubic metres of water annually, the same maximum proscribed by its previous licence.

The licence renewal application was overseen by the NWT Water Board, but responsibility for enforcing the terms of the licence will fall to the Mackenzie Valley Land and Water Board.

Miramar took ownership of the mine in 1993.

With 280 workers, Con is one of the city's biggest employers. The mine opened in 1937 and has produced 5.4 million ounces of gold.

Requirements of the renewed licence include:

• an abandonment and restoration plan satisfactory to the board by Jan. 31, 2001;
• a water conservation plan by Dec. 31, 2000; and,
• a solid hazardous waste management plan by April 30, 2001.