Richard Gleeson
Northern News Services
Yellowknife (Apr 27/01) - The federal government is providing up to $5.4 million in clean-up funding for Giant Mine this year.
Federal funding for Giant and other cleanups was confirmed late last week.
"We got what we requested," said Dave Nutter, who is overseeing the Department of Indian Affairs and Northern Developments role in the cleanup.
Nutter said $3.3 million of the clean-up cash is available now, with another $2.1 million kept in reserve.
"If we require the balance for certain specified purposes we can access the $2.1 million," Nutter said.
The purposes include stepping in to take over management of the property if Miramar ceases to operate it.
Under a deal struck with DIAND after former Giant owner Royal Oak Mines went into receivership, Miramar has the right to walk away from the property with six months notice after operating there for two years.
Miramar agreed to operate the property for at least two years. The two years are up Dec. 14.
DIAND estimates it will cost an additional $3 million to manage the property if Miramar gives it up.
The federal government assumed the environmental liability that existed when Royal Oak abandoned the property. Total cost of the clean-up could be as high as $500 million.
Miramar, which also owns the Con Mine where it processes ore extracted at Giant, reported Wednesday that performance of Giant mine has exceeded initial projections.
Last year DIAND provided $1.8 million for clean-up work at Giant.
