Minto Metals Corp. announced Friday it was immediately ceasing operations after 16 years at its Minto copper mine in central Yukon.

The company has left the mine site.

The Yukon government has assumed care and control of the copper mine site, it was noted this morning at a briefing conducted by government officials.

The government announced Saturday it has contracted JDS Mining to ensure environmental protection is maintained at the mine site, about 240 kilometres northwest of Whitehorse, until the end of June. There is an option to extend as needed.

“The company is familiar with the operation of the mine and has experience in mine site care and maintenance elsewhere in the Yukon,” the government noted in a statement.

Officials at the briefing noted JDS has worked at the mine site and is familiar with the operation.

The primary objective is to ensure contaminated water is treated before it’s released to the environment, officials emphasized.

It’s estimated that Minto Metals has approximately 180 workers and contractors on the payroll for the Minto Mine.

“We do know that as of Friday, Minto Mines told us they had 120 employees and contractors on site,” said Stephen Mead, the deputy minister of mineral resources and geoscience services.

He said JDS has mobilized 50 experienced staffers to Minto to manage the site, particularly the water treatment system.

The government doesn’t know right now what it will cost to take over and manage the operation, Mead said.

He noted the government will use the $75.2 million being held by the government as security to cover the cost incurred as long as it lasts.

The government collects security during the life of the mine to ensure there is sufficient funding to pay for closure and reclamation.

The government said it’s working with JDS and the Selkirk First Nation to ensure that the environment remains protected at all times.

Minto Metals, which has cited financial issues behind its decision, could not be reached for comment this morning.

It plans to pay its employees for work up until the past Friday.

In a press release issued by Minto on Saturday, company president Chris Stewart said: “Needless to say, ceasing operations at the Minto Mine was an extremely difficult and disappointing decision, that was not taken lightly.

“We are acting responsibly in co-ordination with the Yukon government to avoid any damage to the environment. We will update the market with future plans for Minto Metals as soon as possible.”

Mead said Minto is still responsible for the site, and it still owns the assets on-site.

The company, he explained, is still responsible for fulfilling the conditions of its water licence and the direction the company received recently from a mining inspector.

Mead said the government knows that Minto is carrying financial debt.

Four companies have filed liens against the mine assets and there may be more to come, Mead said.

He said Minto owes $1.37 million in outstanding royalties.

“We also know there is a number of subcontractors that are owed money.”

The Minto Mine began open pit mining in 2007. Underground mining commenced in 2017.

Since 2007, the company has mined 500 million pounds of copper, Minto noted in its press release announcing the suspension of operations.

“We are working closely with the contractor and the Selkirk First Nation to ensure that the environment remains protected at all times,” said Energy, Mines and Resources Minister John Streicker.

“Swift action will support the continuity of environmental protection at the site.

“We support responsible mining across the territory. I recognize that this is a challenging time for Minto employees, subcontractors and the community.”