Atlantic Mining to pay Nova Scotia $80M gold mine clean-up bond as it appeals conditions

The Nova Scotia subsidiary of Australia’s St Barbara (SBM:ASX) says the province has agreed to accept the remaining $38.7 million of a bond by the end of the month for cleaning up the closed Touquoy gold mine.

The company, Atlantic Mining Nova Scotia, was originally given until Sept. 3 to pay the full $79.9-million bond amount. It is appealing in provincial court the timelines of a clean-up order from the Ministry of the Environment and Climate Change. The bond's amount isn't an issue, CEO Andrew Strelein said on Friday.

"Should we be unsuccessful in this appeal, we will then proceed to further appeals," Strelein told The Northern Miner. “We are fully committed to completing this project in a timely and responsible manner.”

Atlantic contends the provincial deadline for achieving water quality standards around the mine in Moose River, about 175 km west of Halifax, is unreasonable and could expose the company to potential legal issues. A directions hearing for these appeals is set for November. The company and environmentalists are concerned the ruling could set a precedent for mine cleanups in the region, not just Torquoy. Atlantic operated it from 2017 to 2023.

Delays?

Strelein disputed claims by the Minister of Environment and Climate Change of a three-year delay in reclamation work. He said Atlantic has already invested $7 million into efforts over the summer. They focused on works at the tailings management facility and clearing several key areas, he said. Independent consultants are finalizing models on lake hydrology and geochemistry, and favourable weather has accelerated progress.