Thorunn Howatt
Northern News Services
Yellowknife (Jun 27/01) - The 55 remaining Giant Mine employees could be out of work as a result of Miramar Mining Corporation's announcement that it will return the gold mine to the Canadian government.
Friday's announcement stated that the mine will be the responsibility of the Department of Indian Affairs and Northern Development effective Dec. 14, 2001.
"I'm absolutely disgusted at the way the whole thing has unfolded," said Hemi Mitec, assistant to Canadian Auto Worker's union president Buzz Hargrove.
"Given the environmental disaster we have going there, the government has to offer some buy-outs to the workers," he said, referring to the arsenic-laced, on-site wastes the government continues to study.
The government took over the mine from bankrupt Royal Oak Mines Inc. two years ago, assuming responsibility for the cleanup of about 237,000 tonnes of arsenic trioxide dust buried in the mine.
Then when Miramar acquired Giant Mine the company was provided an indemnity from DIAND against any pre-existing environmental liability.
"We don't want to hold out hope that we would be operating the Giant mine next year," said Miramar's senior vice-president of operations, Brian Labadie.
Although Miramar is discussing options to continue post-close care and maintenance at the site, "We will issue notice to the employees," he said.
Miramar's 1999 agreement with the government allowed it to walk away from the mine after two years of operation providing it issued six months notice.
Labadie said the deal is "past its time" as a result of low gold prices and an over-estimate of the mine's ore.
"Had we found more ore we had the option to extend (the agreement). We didn't find more ore," said Labadie.
A significant cost reduction as well as an increase in gold prices -- more than a $40 increase -- might encourage Miramar's interest in the mine.
He said some employees could transfer to Miramar's Con Mine and some might get work with contractors involved in maintenance or security.
"We won't be taking all of them though," he said.
"It's not a complete surprise," said David Nutter, a senior government advisor.
"I don't want to say never but all mines come to an end," he said and added, "The mine will close."
