Thorunn Howatt
Northern News Services

Yellowknife (Aug 06/01) - Yellowknife's ever-controversial Giant Mine will remain open and operational under Miramar for at least another year if they can ink a tentative agreement with the federal government.

The Giant Mine may operate for another year, thanks to a new deal between Ottawa and Miramar. - NNSL file photo

"We get to generate some additional ore and DIAND gets to continue to have us," said Miramar spokesperson, Brian Labadie, who added, "We're more familiar with the mine than anyone else."

Miramar Mining Corporation and the Department of Indian and Northern Affairs and Northern Development have agreed that Miramar Giant will continue operating the mine but the government will cover the cost of environmental compliance.

Miramar has identified additional mineral deposits at the old mine that it says can be economically mined and processed at the adjacent Con Mine.

"We've known there was additional mineralization but it wasn't economic to produce," said Labadie.

It said it will keep the mine operational until at least late 2002. It will give 55 Giant employees an additional year of work before possible lay-offs.

"We've notified our employees. Although they knew some discussion was underway, once we had an agreement, we were able to discuss it with them," he said.

Previously, under the old agreement, Miramar Giant was responsible for environmental compliance costs.

Labadie defended Miramar's participation in the shaded history of Giant. If it wasn't for Miramar, today this mine would be a huge tax burden and an environmental liability to the public. We've paid taxes and we've paid our power bills," he said and added, "We've turned something that could have been disastrous into something that could be profitable."

After Miramar's operations have ended, it will oversee compliance-related activities for a period of six months after giving notice.

"There is no tailor-made solution to deal with the arsenic trioxide," said government spokesperson, Lorne Tricoteux.

The existing environmental indemnity from Indian Affairs and reclamation security provisions of the existing agreements between Miramar Giant and the department will not be affected.

"The federal government will compensate Miramar for their costs in dealing with environmental compliance," said Tricoteux and added, "The alternative was to cease production and lose those jobs."