Whitehorse Daily Star

B.C. should intervene in the Tulsequah Chief saga: group

It’s time for the province of B.C. to step up to the plate with regard to the troubled Tulsequah Chief mine, insists the Juneau-based Rivers Without Borders.

By Chuck Tobin on September 13, 2016

It’s time for the province of B.C. to step up to the plate with regard to the troubled Tulsequah Chief mine, insists the Juneau-based Rivers Without Borders.

The organization issued a press release last week, the day after Chieftain Metals Corp., owner of the property, entered bankruptcy proceedings.

With no money to pay for care and maintenance of the mine site, it’s time B.C. Energy and Mines Minister Bill Bennett steps in to ensure proper management of the site, Chris Zimmer, campaign director for Rivers Without Borders, says in the release.

Zimmer points out in the release this is the second time since 2009 the owner of the property has found itself in bankruptcy proceedings. The first occurred back in 2009 under the ownership of Redcorp Ventures.

“It is becoming increasingly obvious that this mine in the salmon-rich Taku (River) watershed is not a viable project, economically, environmentally or socially,” says Zimmer.

“Alaska commercial fishermen and leaders have longstanding concerns about the proposed mine, while the Taku River Tlingit First Nation opposes the project and has challenged its permits in Canadian courts.

“Since the mining companies have been unable to halt the acid mine drainage, it’s time for B.C. to honour the promises made by minister Bill Bennett last August and clean up this mess.”

Zimmer refers to a statement made by Bennett in late August when he was in Juneau and flew over the Tulsequah Chief mine, which last operated in the 1950s.

Bennett is quoted in a Juneau article as saying that while the acid drainage does not appear to be harmful, it should not be happening.

The minister also said the province should be working with the company to get the water treatment plant working.

The mine site is on the Tulsequah River, which drains into the salmon-rich Taku River, not far from the B.C.-Alaska border.

Earnest attempts to reopen the mine have been ongoing since the 1990s.

Documents filed last week in the Ontario Superior Court of Justice notes that Chieftain Metals was unable by the Aug. 15 deadline to repay $26 million to West Face Capitol, a financing company.

Court documents also indicate attempts by West Face to find either further investment in global financial community or a company willing to step and outright buy the property were unsuccessful.

Such were Chieftain’s financial woes that the company defaulted on its July and August rent payments for its office space in Toronto to save money, the court documents say.

Grant Thornton Ltd. has been appointed as the receiver.

The campaign director for Rivers Without Borders points out in the press release there’s a likelihood Chieftain Metals is going bankrupt.

“West Face, which has no experience with owning or operating a mine, could end up owning the mine,” says Zimmer.

“Unless the B.C. government steps in with money and expertise, the Tulsequah Chief will continue polluting the Taku watershed.”

Bennett’s office was contacted late this morning for a comment.

B.C. Energy and Mines spokesman Suntanu Dalal told the Star it was unlikely the department could provide a response before today’s press deadline.

Comments (1)

Up 2 Down 2

Sandra on Sep 15, 2016 at 9:27 am

Total agreement on the article and Chris Zimmer's perspective regarding BC Government Mines mandate to oversee and ensure reclamation responsibilities of Chieftain Metals. I thought that it was BC Government's responsibility to get mines of the size of Chieftain (26 million) to provide a bond for reclamation upon the closure of the mining project? Little or no comment from BC Mines and Minerals branch? This problem will likely not go away by ignoring it or not dialoguing with concerned Tlingit citizens on both sides of the Canadian/US border.

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