A potential catastrophe downstream from Lac Des Iles Mine has been averted, says a Ministry of the Environment and Climate Change official.
New water quality tests show no damage to the aquatic environment after a tailings pond sinkhole caved in on June 4. Afraid the resulting flow would cause failure of another dam, the Ministry of the Environment allowed the mine to discharge tailings into the watershed.
Had a second dam burst, MOE issues projects coordinator Lisa Brygidyr said a million cubic metres of contaminated water could have entered the environment.
“Through the actions the ministry took in dealing with the situation at the mine and the requirements that the mine company came to us with to get the situation under control, we were able to prevent a significant environmental situation from happening in the area,” she said.
The tailings form a white fog in the water, with grains smaller than sand.
The most recent clarity tests show between five and seven NTUs (Nephetric Turbidity Units) where Ontario’s allowable limit is under 10.
Brygidyr added the ponds on site have also stabilized.
”Right now, water levels have all decreased to a level where professional engineers have assessed the structures and the dams and the spillways. They feel that the water levels are safe and we that have sort of returned to a level where the mine can potentially begin to re-commence the operations at the site.”
The MOE gave the Lac Des Iles permission to begin milling again on June 26. Its parent company, North American Palladium is expected to release details on startup plans within the week.
NEXT STEPS
The mine has conducted full assessments on dam safety and stability. It has developed an operations plan for each dam, spillway, structure, reclaimed cell and all constructions associated with the tailings facility.
The ministry has also ordered Lac Des Iles to take all steps to remediate environmental consequences downstream.
Brygidyr believes that by applying silt curtains in likely problem areas, ministry and company staff can get out in front of any damage that may still occur.
“The predictive modelling that they’re doing is going to help us better understand downstream movement in the water system and what, if any, potential impacts there would be. Right now, we haven’t seen any. It will also help the company target rehabilitation measures they’re going to have to put in place.”
Although the MOE is allowing the mine to continue to release untreated water until the end of July, the company announced it had stopped doing so in mid-June.
North American Palladium Chief Financial Officer David Langille praised the ministry and the experts the company has hired to manage the incident.
"It wasn't sort of a Mount Polley where there was massive tailings going out into the environment. It was something that was fairly benign but it was still something we have treat and we have to to fix,” he said.
"We're going to take remediation actions, obviously, to protect the environment and get an agreement with experts to provide an opinion and agree with the ministry as to the best way forward to make sure there is no damage."
The MOE expects that remediation report to be submitted by July 3.
FINANCING THE FUTURE
The news comes 10 days after Brookfield Asset Management offered to recapitalize North American Palladium and offer $25-million in bridge loans. As equity, Brookfield would take over 92 per cent of North American Palladium's common shares.
The Existing common shareholders, who would retain only two per cent of the recapitalized company, will vote on ratifying the offer on July 30th.
North American Palladium's stock has lost 80 per cent of its value since April, closing on Monday at $0.05 per share.
