Daniel MacIsaac
Northern News Services

NNSL (Apr 09/99) - The future of Giant Mine has been receiving even more attention over the past week as its union and all levels of government have held meetings to discuss ways of cleaning up an economic and environmental mess.

Yellowknife city council convened an in-camera meeting Wednesday afternoon and invited representatives of the Department of Indian Affairs and Northern Development, the territorial government and the NWT Power Corporation, "to discuss issues of common concern regarding the status of Royal Oak Mines Inc."

The company, which owns the Yellowknife Giant Mine, owes the city more than $700,000 in property tax and has been granted an extension of bankruptcy protection until April 16 by an Ontario court.

"Of course, all levels of government are hopeful that the company will be able to submit a restructuring plan that will allow it to continue to operate in a responsible manner," said Mayor Dave Lovell in a statement.

"However, in the unfortunate event of a bankruptcy, we want to make sure that an orderly series of events follow -- foremost among our concerns are the health and safety of our resident and continued prosperity of Yellowknife."

Bill Braden, director of corporate services for the NWT Power Corp., said he attended the meeting as an observer. NWT Power, which is one of Royal Oak's creditors, is continuing to provide electricity to Giant Mine.

"We do not discuss the details of customer accounts in public, but Royal Oak is in arrears and we are preparing to file our information should a receivership arise," Braden said.

Lovell said the meeting was held behind closed doors because council was discussing legal matters and the potential of city claims. But he added that with legal action ongoing, "for now it's a waiting game."

Lovell also expressed concern for Yellowknife's miners -- several of whom met with Western Arctic MP Ethel Blondin-Andrew last Thursday for an informal discussion of Giant's predicament, including an estimated $250-million cleanup of arsenic trioxide.

Steve Peterson, plant chair and recording secretary for the Canadian Auto Workers Local 2304, said Wednesday that the workers are thinking about their own future.

"If the mine goes into receivership, someone is going to have to deal with the arsenic," he said. "But we feel the mine is viable."

Peterson said the local is trying to get a working group together to discuss solutions to the cleanup issue, including the potential for extracting gold from the thousands of tonnes of arsenic trioxide stored underground at Giant. He said if the cleanup problem is solved, the mine may yet attract a buyer.

Peterson said Blondin-Andrew made a good impression at the meeting.

"She seemed to be abreast of the situation and willing to do what she could," he said.