Richard Gleeson
Northern News Services

NNSL (Jun 04/99) - The federal government wants Giant Mine to continue operating and is willing to reduce the environmental liability attached to it to accomplish that.

The assistant deputy minister of DIAND's Northern Affairs program said the federal government has made it known to Royal Oak's receiver, PricewaterhouseCoopers, it is willing to negotiate liability for the clean-up with prospective purchasers to make the mine a more attractive buy.

"The short answer is yes," said Jim Moore when asked if the government would be willing to reduce the liability. "What is the range of flexibility? I can't tell you that. We won't be in a position to be sure on that front until we see a game plan coming forward from a prospective owner on what they think might work."

Should no buyer come forward, the federal government would be responsible for the underground portion of the clean-up, estimated to cost about $200 million. Arsenic dust captured from the smoke stack at the mine is stored in underground vaults.

Moore said the government is studying how best to deal with the arsenic. It will be hosting a workshop in Yellowknife, June 22-23, for scientists and academics studying the issue.

"We feel strongly this has to be a collaborative effort between ourselves, the industry, hopefully a prospective buyer if somebody comes forward, and perhaps the city of Yellowknife and the GNWT, to find a solution that is workable," said Moore.