Fort Simpson (Mar 14/03) - Two NWT environmental organizations are calling on the federal government to protect taxpayers from cleanup costs at CanTung mine.

A new report released by the Department of Indian Affairs and Northern Development (DIAND) indicates that complete reclamation of the mine site would cost close to $48 million. North American Tungsten has allotted only $2.55 million for that purpose, however.

"There's clearly not enough money set aside by the company. That means the taxpayers are going to have to pick that up," said Kevin O'Reilly, research director for the Canadian Arctic Resources Committee (CARC).

David Milburn, manager of the water resources division for DIAND, said there are currently five price tags attached to various cleanup options.

Two independent consultants have submitted estimates ranging between $5.7 million and $48 million.

Milburn admitted that DIAND perceived North American Tungsten's cleanup estimate of $3 million as "woefully inadequate." Regardless, he added that DIAND was bound to honour the terms of the company's existing water licence, which pre-dated a recent policy that would require the company to assume full liability.

"We're quite concerned ... any operating property that doesn't have the adequate liability, we're quite concerned," said Milburn.

He explained that DIAND cannot propose a higher security deposit until North American Tungsten's next water licence hearing is held later this year.

The CanTung report also revealed a finding of tailings -- ground-up rock laced with chemicals that can generate acid -- on the Flat River, 15 kilometres from the mine site and 85 kilometres from Nahanni National Park.

Milburn said he suspects the tailings emanated from an overflow in the 1980s. Nevertheless, he acknowledged that proper reclamation of the tailings ponds is crucial.

"There's some risk management involved here too. If the tailings aren't handled properly, you could be creating larger environmental liability," he noted.

The CanTung mine, which went back into production in January 2002, is located near the NWT/Yukon border. North American Tungsten has nearly two years remaining on its contract to supply tungsten.

The company is currently appealing an environmental assessment order.

A spokesperson at North American Tungsten's headquarters in Vancouver said president and CEO Udo von Doehren would have to respond on behalf of the company, but wasn't available for comment due to travel to Toronto this week.