Derek Neary
Northern News Services
Monday, April 02, 2007

CAMBRIDGE BAY - The Nunavut Territorial Court fined Miramar Hope Bay Ltd. $100,000 on March 16 for a 19,000-litre diesel spill that occurred in 2004.

Miramar, which pleaded guilty to the charge, must pay a $10,000 fine and another $90,000 to the Environmental Damages Fund, a pot of money for natural restoration projects overseen by Environment Canada.

The area of the fuel spill - Windy Lake, east of Bathurst Inlet - is home to fish and migratory birds.

The Kitikmeot Inuit Association, which has an Inuit Impact Benefits Agreement with Miramar, said the fine "was stiff, but we think that it's fair because KIA is very concerned about keeping our land and water pristine," said Geoffrey Clark, director of lands, environment and resources with KIA.

In addition to the fine, Miramar has already paid KIA more than $40,000 in compensation for affected Inuit water rights, Clark noted.

The fuel leaked onto the melting lake ice in June 2004 when a hose used to transfer diesel from one tank to another came apart.

The company incinerated the majority of the diesel fuel as it remained on the surface, said David Long, vice-president legal for Miramar Hope Bay Ltd.

Subsequent water tests from Windy Lake have shown no traces of hydrocarbons, according to Long, who added that Miramar doesn't consider the court's ruling excessive. The company has since reviewed its fuel handling procedures and there have been no further incidents, Long said from Vancouver, where the company is headquartered.

The KIA has taken note of Miramar's vigilance, according to Clark.

"We do have more confidence in the company now than three years ago," he said.

Four other charges against Miramar were stayed in light of the guilty plea.

In 2006, Miramar employed close to 100 people full-time and part-time at its Hope Bay property, where it has identified approximately nine million ounces of gold.

Of those workers, close to 40 were Nunavut Land Claim beneficiaries, according to Long.