Colomac Mine
Encyclopedia
The Colomac Mine was an open pit gold
mine in the Northwest Territories
that operated between 1990–1992, and 1994-1997. It was operated by Peggy Witte, whose first company Neptune Resources Limited had little success in making a profitable operation. In 1994 the mine
reopened by her other company, Royal Oak Mines Incorporated. Low gold prices forced Royal Oak into bankruptcy
and the mine was reverted to the ownership of the federal government of Canada
. A major cleanup effort is underway to prevent the mine from polluting the environment. The mine tailings have a very high cyanide
and ammonia
content, and a serious acid mine drainage problem as well as other contaminant
s and waste on site.
The Colomac Mine processed a total of 12,294,352 tons of ore to produce 535,708 troy ounces (16,662 kg) of gold.
On April 2007, Indian and Northern Affairs Canada has engaged Deloitte & Touche LLP as its agent to solicit expression of interest with respect to the acquisition of the Colomac Gold Mine, NWT. The key highlights of this opportunity were:
The mine was featured in the series Ice Road Truckers
.
The mine is located at Indin Lake, which provides drinking water
for 200 residents. The Dogribs said that the tailings pond would overflow, unless immediate drastic measures were taken. In early March, a public hearing was held to cancel the Royal Oak water licence so that a new one can be issued and clean-up can begin. The Dogribs feel this tortuous legislative process may delay clean-up until it is too late.
In November 1999, the Department of Indian Affairs and Northern Development (DIAND) awarded a one-year, $2-million contract to a consortium of aboriginal businesses from DetonÇho Corporation, the Dogrib Rae Band and the North Slave Metis Alliance to undertake final reclamation activities at the Colomac Mine. The consortium conducted studies into contamination and took responsibility for on-going environmental monitoring and maintenance of the site. After the contract was awarded, Royal Oak was finally charged under the Water Act and the Fisheries Act for the pollution it caused – much too late, since the company was already in receivership.
Now, the water licence
has not been changed, the money needed to clean up the site is not forthcoming, and the Dogribs are faced with a potential catastrophe if the tailings pond overflows. Says Dogrib leader Ted Blondin: "I think there is a fiduciary responsibility that the federal government has to looking after the Dogrib interests, and these are the arguments that we will use towards ensuring that the quality of water and the work that has to be done for the cleanup is done."
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
mine in the Northwest Territories
Northwest Territories
The Northwest Territories is a federal territory of Canada.Located in northern Canada, the territory borders Canada's two other territories, Yukon to the west and Nunavut to the east, and three provinces: British Columbia to the southwest, and Alberta and Saskatchewan to the south...
that operated between 1990–1992, and 1994-1997. It was operated by Peggy Witte, whose first company Neptune Resources Limited had little success in making a profitable operation. In 1994 the mine
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
reopened by her other company, Royal Oak Mines Incorporated. Low gold prices forced Royal Oak into bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
and the mine was reverted to the ownership of the federal government of Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. A major cleanup effort is underway to prevent the mine from polluting the environment. The mine tailings have a very high cyanide
Cyanide
A cyanide is a chemical compound that contains the cyano group, -C≡N, which consists of a carbon atom triple-bonded to a nitrogen atom. Cyanides most commonly refer to salts of the anion CN−. Most cyanides are highly toxic....
and ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
content, and a serious acid mine drainage problem as well as other contaminant
Contamination
Contamination is the presence of a minor and unwanted constituent in material, physical body, natural environment, at a workplace, etc.-Specifics:"Contamination" also has more specific meanings in science:...
s and waste on site.
The Colomac Mine processed a total of 12,294,352 tons of ore to produce 535,708 troy ounces (16,662 kg) of gold.
On April 2007, Indian and Northern Affairs Canada has engaged Deloitte & Touche LLP as its agent to solicit expression of interest with respect to the acquisition of the Colomac Gold Mine, NWT. The key highlights of this opportunity were:
- Approximately 6.6 million tonnes of indicated resources
- Gold processing mill and related equipment
- Maintenance building
- Dorm-room style camp complex
- Power and fuel storage facilities
- Mobile equipment including rock trucks, excavators and loaders
The mine was featured in the series Ice Road Truckers
Ice Road Truckers
Ice Road Truckers is a documentary-style reality television series that premiered on History on June 17, 2007.-History:In 2000, History aired a 46-minute episode titled "Ice Road Truckers" as part of the Suicide Missions series...
.
Rehabilitation
The Colomac gold mine, on Dogrib territory, was shut down in 1997, then abandoned by Royal Oak and transferred to the Federal government on December 13, 1999. Under its Water Licence, the company had posted a $1.5 million security deposit. At present it is on "care & maintenance" and awaiting clean-up. The mine tailings have a very high cyanide and ammonia content and a serious acid mine drainage problem as well as other contaminants and waste on site. The eventual clean-up may cost more than $70 million. On November 23, 1999, Royal Oak Mines was charged with cyanide dumping by the Federal Government at the Colomac mine.The mine is located at Indin Lake, which provides drinking water
Drinking water
Drinking water or potable water is water pure enough to be consumed or used with low risk of immediate or long term harm. In most developed countries, the water supplied to households, commerce and industry is all of drinking water standard, even though only a very small proportion is actually...
for 200 residents. The Dogribs said that the tailings pond would overflow, unless immediate drastic measures were taken. In early March, a public hearing was held to cancel the Royal Oak water licence so that a new one can be issued and clean-up can begin. The Dogribs feel this tortuous legislative process may delay clean-up until it is too late.
In November 1999, the Department of Indian Affairs and Northern Development (DIAND) awarded a one-year, $2-million contract to a consortium of aboriginal businesses from DetonÇho Corporation, the Dogrib Rae Band and the North Slave Metis Alliance to undertake final reclamation activities at the Colomac Mine. The consortium conducted studies into contamination and took responsibility for on-going environmental monitoring and maintenance of the site. After the contract was awarded, Royal Oak was finally charged under the Water Act and the Fisheries Act for the pollution it caused – much too late, since the company was already in receivership.
Now, the water licence
Water right
Water right in water law refers to the right of a user to use water from a water source, e.g., a river, stream, pond or source of groundwater. In areas with plentiful water and few users, such systems are generally not complicated or contentious...
has not been changed, the money needed to clean up the site is not forthcoming, and the Dogribs are faced with a potential catastrophe if the tailings pond overflows. Says Dogrib leader Ted Blondin: "I think there is a fiduciary responsibility that the federal government has to looking after the Dogrib interests, and these are the arguments that we will use towards ensuring that the quality of water and the work that has to be done for the cleanup is done."