Terry Halifax
Northern News Services

NNSL (Apr 21/99) - On the heels of an Ontario court ruling which declared Royal Oak Mines Inc. bankrupt, Justice James Farley appointed receivers, PricewaterhouseCooper, who said it will be 'business as usual' for employees of Giant Mine.

Two of the firm's advisors met with Giant Mine managers and union officials at 3:00 p.m. last Saturday at mine offices.

Following the meeting, PricewaterhouseCooper officials would make no official comment, but released a statement from Brock J. Edgar, vice-president of the firm which assured Giant management and staff they would not be laid off or fired.

"Your employment with Royal Oak Mines Inc. will continue while we attempt to sell the assets of Royal Oak Mines Inc.," Edgar said in the statement. "Therefore you should attend work as you normally would."

CAW local 2304 President, Marc Danis, said he was assured by the receiver at Saturday's meeting that there will be no layoffs or firings.

"For now we're relieved," he said. "We've still got a job to go to on Monday, but there is a feeling of foreboding that will still be there until a buyer is found."

All of Royal Oak's assets are expected to be sold off by the end of June.

While no buyer has yet expressed interest in buying Giant Mine, Danis said the union may seek ownership.

"We've had some preliminary discussions on it, but we'll bring it up to the membership and they'll have the ultimate decision on whether we do it or not," Danis said.

Jake Ootes, MLA for Yellowknife Centre, said he was speaking with the union as well as a group of local business people over the possibility of a consortium purchase of the mine.

"What I see in this is the potential for a Northern-owned mine through a joint business labour venture, or a business venture alone or a labour venture alone," Ootes said.

Any sale or potential sale of the troubled mine hinges on the responsibility for the cleanup of hundreds of tonnes of arsenic trioxide stored in the bowels of Giant.

"The big hurdle in the equation is the environmental issue," Ootes said. "I don't think you'll find anybody interested in this particular operation if it is tied to ensuring and paying for the environmental cleanup."

MLA for Yellowknife South Seamus Henry believes an employee-run mine could be a workable solution.

"If anybody can make it work, the employees can make it work, as long as they employ the services and let them run it like a business," Henry said.

Henry said the responsibility for the cleanup is "not even up for discussion."

"The bottom line is, that the environmental problem belongs to the federal government," he said. "It's been their regulations the mine has operated under and it's been the federal government who've got the royalties from it."

In a conference call on Monday afternoon, Peggy Witte said she is confident a solution to the arsenic problem will be found.

She is satisfied with the judge's ruling and holds no animosity towards the creditors.

"In no way am I bitter or am I upset with the ruling," Witte said. "I think the lenders were very patient."

"They did entirely what they had the right to do and certainly there's no hard feelings there."