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Miramar takes very seriously its responsibility to act as a steward of the environment.
To ensure management and employees are aware of this commitment, the Board of Directors has adopted a clearly defined environmental policy. In Yellowknife, Miramar takes a proactive role in dealing with its obligations to clean up the Con Mine.
The asset retirement obligation for the Con Mine is comprised of two components (1) processing of historic mill roaster tailings (arsenic contained within this material is rendered inert by a process which utilizes the pressure oxidation circuit); and, (2) site closure and monitoring activities, including building removal, capping of mine openings, restoration of tailings areas, water treatment and post-closure monitoring. Although the ultimate amount to be incurred is uncertain, the liability for retirement and remediation of the Con Mine has been estimated to be $15.4 million. Cost estimates include contractor markups, provision for administration and engineering, provision for a market risk premium, and a provision for contingencies. However, the Company expects to use its employees wherever possible to complete the reclamation activities, which could reduce actual costs below the accrued liability. The Company has $10.7 million on deposit in the reclamation security trusts. The Company has committed the proceeds from any assets sales at the Con Mine to the Con Mine reclamation security trusts and the funds in the trusts will be applied to, in part, offset the reclamation costs as they are incurred.
Key efforts in retiring the Con Mine include: a) the processing of residual historic roaster calcines and arsenic bearing sludges through the autoclave which will be completed in 2007; b) final wash down of the blend plant storage pits which will be completed in 2007; c) the finalization of the mine closure and reclamation plan which should receive regulatory approval early in 2007 allowing other site closure reclamation activities to commence in 2007 and essentially be completed over a two year period, including removal of remaining buildings, capping of remaining mine openings, capping of the tailings containment areas and remediation of the site to the standard acceptable for industrial-use property; and d) an allowance for ongoing water treatment and environmental performance monitoring continuing for a period of approximately 25 years (post closure water treatment and monitoring).
- Environmental Policy
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- Reclamation of the Con Mine
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