a report on mining activities and impacts in the lake ... -...

A Report on Mining Activities and Impacts in the Lake Superior Basin

Northwatch Summer 2001

underMINING SUPERIOR 2

Throughout the Great Lakes Basin,mining has left a dismal legacy ofcontaminated sites andcontaminated ground and surfacewater.

Inside ...The Project 2 Overview of Mining Activities 3Mineral Exploration 4Water Pollution 6Acid Mine Drainage 7From the Air That We Breath 8Mine Expansion at Lac des Iles 9At Work in the Mines 9Cost of Clean-Up, Perpetual Care 10Regreening: Benefits & Limitations 11Abandoned Mines 12A Word from the U.S 13References, Where to Learn More 14Summary of Mines 15

Northwatch Hits the Mining Trail with the Lake Superior Mines and Metals Monitoring ProjectIn early 2000, Northwatch began developing anoverview and inventory of mining activities and theirimpacts in the Lake Superior basin, as the first in whatwe hope will be a series, covering each of the majorwater sheds in northeastern Ontario. The SuperiorMining Project (which identified a number of inferiormining practices!) included research about operating,abandoned and proposed mines on the Canadian side ofthe Lake Superior basin. The research was done through

many visits to theMinistry ofNorthernDevelopment andMines offices andreading room, toomany hoursscanning industrydata bases, websites and newsreleases, andreviews ofcompliance dataand reports ofpollution releasesfrom the federaland provincialgovernment.

Finally, in June 2001, the Northwatch team hit the road,travelling up and down the Superior coast, visiting 16mine sites, 3 First Nations, and a diamond laboratory,meeting with 1 municipal reeve, 1 trade union staffrepresentative, 6 mining companies, and severalMinistry of the Environment officials, and holding 2community roundtables.

This tabloid is a product of that tour, as well as themany hours of research before and since. The projectwas made possible through the financial support of theLake Superior Alliance and MiningWatch Canada, andthe generous sharing of time, knowledge andunderstanding of many people along the way.

Founded in 1988, Northwatch is a coalition ofenvironmental and social justice groups working toaddress environmental and social concerns related tonatural resource use, particularly mining and logging,and other regional issues, such as toxic waste, thenuclear industries and waste disposal schemes, and airand water quality. For additional copies of this publication or for moreinformation about Northwatch, contact us at Box 282, NorthBay, Ontario, P1B 8H2, tel 705 497 0373 [email protected]

The Lake Superior basin isrich in minerals, and mininghas played a key role in itssettlement over the lastcentury. On the Ontarioside of the basin, there arecurrently 5 gold mines and one palladium mine inproduction. Hundreds of abandoned mines scatteredthroughout the area testify to historical production of awide range of commodities. Exploration remains veryattractive in the basin, primarily for gold, palladiumgroup metals, and - increasingly - for diamonds.

Mining has both benefits and costs. Communities likeMarathon, situated near the Hemlo gold mines,experience major economic benefits from the mineswhile they are in operation, including employment andlocal spending. But mines must inevitably close, eitherwhen reserves are exhausted or markets fall. It ispredicted that the Hemlo mines will all shut down withinthe next 12 years.

The active mines on Canada’s Superior coast areamong the country’s largest, including the rich goldmines of the Hemlo camp and the recently expandedpalladium mine at Lac des Iles, north of Thunder Bay.

Mining is a fascinating andinfluential component ofnorthern Ontario's past,present and future. Theindustry is ever changing. Itis now estimated that 3.4

employees are required to generate $1 million of metalsproduction. As mechanization in mining increases, sotoo does the scale of its operations and its impacts.

This report examines mining in the context ofenvironmental impacts to air, land and water, andconsiders community transition, First Nations issues,and worker health and safety underground. Many ofthe difficult issues and impacts identified in this report onmining in the Lake Superior basin are also relevant inother jurisdictions globally. This report was created toprovide information on mining issues and impacts in theLake Superior basin in the belief that increased publicunderstanding of mining issues will lead to increasedpublic oversight, which in turn will move mining in thedirection of maximizing benefits and minimizing costs,particularly environmental and social.

Summer 2001 3

Abandoned Mine in the Wawa Gold Fields

The tailings at the abandoned Coppercorp Mine will require perpetual care. Mine workings and buildings had not been decommissioned.

The mining process requires massive removal of soil Algoma Steel’s Ore Division in Wawa closed in 1998and rock to retrieve the valued ore. The result is huge rather than make the investment needed to reduce theiramounts of wastes that often contain toxic heavy metals air emissions. They left behind a 40 kilometre “killand acid-generating minerals. zone” caused by emissions from the sintering process.

The ore goes through a number of processes on its wayfrom mine to market. The first ofthese is a primary separation ofthe desired mineral from theother constituents of the rock - a Mining in Ontario is regulatedprocess which produces large through the Mining Act, thequantities of contaminated water Environmental Protection Actand huge volumes of waste rock and the Ontario Waterand tailings. Tailings are fine Resources Act. The missionground rock which is created as statement for the Ministry ofa waste by-product of milling. Northern Development andThe waste rock and tailings, Mines is “to generate newwhen exposed to oxygen and wealth and benefits forwater, may generate acidified residents of Ontario byand metal contaminated stimulating environmentally anddrainage, which pollutes surface economically sustainable use ofand ground water and area the province’s geology andstreams, rivers and lakes. mineral resources.”

After the ore has been milled A look at mining in the Lakeand made into a concentrate, it Superior Basin raises questionsis smelted and refined to about how well the governmentproduce the desired metal. is meeting its mission statement.When metals occurring in Mining companies do notsulphide minerals are smelted appear to have postedsulphur dioxide is released. In addition to causing adequate financial securities for closure, therebyrespiratory problems and having other harmful increasing public liability. Miners’ health is being put atenvironmental effects, when sulfur dioxide is released risk by poor tracking of monitoring results and spottyinto the air it mixes with precipitation to form acid rain. standards. Planning for perpetual care is in legislation

A range of toxic heavy metals are also released to theair by smelting. Generally, these pollutants settle to theground close to the smelter, contaminating local soil andwater.

The town is now struggling to clean up arsenic-contaminated soils registering at 100 times more toxic

than the federal government’sstandard for acceptable risk.

but not in practice. Groundwater contamination frommines is left unregulated and aquatic ecosystems areimpaired by mine effluent. And First Nations are notbeing consulted and do not receive benefits from minesin their territories.


Five Stages of MiningPreliminaryExploration andStaking

Geochemical and/or geophysical techniquesused to identify valuable ore bodies.Ground-work, such as stripping or trenchingto remove overburden and/or drilling are usedto obtain samples.

AdvancedExploration andDevelopment

Further exploration and feasibility studiesexamine profitability, design of the minesiteis planned, and construction begins e.g. shaftsinking, pit excavation, road building,construction of surface facilities.

MineralExtraction

Ore is removed from the ground. Wasterock is discarded and the remaining rock istransported to a mill. Ore can be extractedfrom open pits, from underground, orthrough heap leaching.

Concentration /Beneficiation

The ore is crushed and ground at the mill. This is followed by separation of valuablematerial from waste (tailings) using gravity,magnetic, or flotation techniques.

FurtherProcessing

Further metallurgical processing, such assmelting, and refining is carried out, whichmay be done further off-site. This stageusually involves changes in the chemicalnature of mined minerals.

Exploring the Lake Superior Basin - the Search for Money-bearing RockMineral exploration is on the rise in the Superior basin, Last year, the provincial government announced $4with the number of “active properties” almost doubledfrom 1999 to 2000. Almost half of the explorationprojects are gold prospects, with the platinum/palladiumgroup following at just under one-third, and diamondsmaking up about 10%.

Every mine starts with a prospector driving stakes intothe four corners of a parcel of land, tying his tag to thelast post, and claiming the mineral rights. Then the earthis scratched, scraped and drilled in an industrial probe forher secret wealth of mineral, metals and gems. Alongthe way, the market intervenes, with much of the moneythat is being made in mining changing hands not as aresult of mine production, but through the buying andselling of possibilities. Mine property prices rise and fallwith the latest news of drill results, or investment shifts,and through mergers and acquisitions.

In Ontario today, money can be made in the business oflooking for a mine. Mineral exploration is now heavilysubsidized, through both direct grants to mining industryassociations, government funded mineral reconnaissanceand research, and flow-through shares, which providetax benefits to those who invest in mineral exploration,regardless of whether a mine is ever found.

million in direct funding to help restructure the OntarioProspectors Association. The OPA is an industryassociation whose mandate is to “meet the needs of theprospecting community” and “create and promoteprospector development initiatives to support grassrootsexploration”. Practically speaking, the primary role of theOntario Prospectors Association is that of an industrylobby group, promoting the mineral exploration industry’sinterests in provincial policy-making, and local land-useplanning.

One of the largest areas of subsidy to the mineralexploration sector is in the direct funding by governmentof research and development for the mineral explorationbusiness.

“Our $29-million Operation Treasure Hunt investment isgenerating new geoscientific data that promotesOntario’s standing as one of the best jurisdictions in theworld for mineral exploration,” said Ontario MinesMinister Dan Newman, in his July 31, 2001 newsrelease. “It is part of the Mike Harris government’songoing support for the mining industry and it is one ofthe reasons Ontario was last year ranked by the Fraser

Institute as the top jurisdiction in Canada –and number three in the world – for mineralpotential and mining investmentattractiveness.”

Work done by the Ontario Geological Surveyunder the “Operation Treasure Hunt” includesmineral studies looking at diamond potential inthe Wawa area, with OGS staff membersinvolved in a province wide evaluation ofkimberlite, the rock type most likely to hostdiamonds. Ministry of Northern Developmentand Mines news releases boast of thediamond potential in the Wawa area, and seekcredit for having first funded geologicalsurveys in the areas currently being exploredby the mineral industry.

A dozen different properties are beingexplored in the Wawa area. One company,Spider Resources, has a claim that is 200square kilometres in size.

Diamond exploration usually involves removalof the overburden - all of the soil and plantsabove the bed-rock - as well as diamonddrilling and removing large volumes of rockfor bulk sampling.

Summer 2001 5

“Operation Treasure Hunt ... is partof the Mike Harris government’songoing support for the miningindustry”

Ontario Mines Minister Dan Newman

After more than a decade of development work,PolyMet Mining Corporation’s Marathon PalladiumProject, 10 kilometres north of Marathon, is inadvanced exploration. The current drill program isdelineating the extent of the economic mineralreserve. The exploration company contracted to dothe work is describing the deposit as “tailor made foropen pit mining”, with high copper content boostingthe financial appeal of the palladium mine.

PolyMet is currently projecting a 15 year mine life,expected to produce 949,00 oz of palladium, 267million tonnes of copper, 215,000 oz of platinum,146,000 oz of gold, and 1.7 oz of silver. Total capitalcost is initially projected at $185.2 million CDN, andwill generate $152.3 million CDN in profit.

Under the Canadian Environmental Assessment Act,an environmental review is required, with earlynotice to the public a central principle of the Act. Nonotice has yet been given, and the CanadianEnvironmental Assessment Agency has not yet beeninformed of the project by either the Company or thefederal Department of Fisheries and Oceans, whowill have a lead role in the review

At least one gold prospect, River Gold’s Mishi Pitbetween Wawa and White River, is moving intodevelopment. The Mishi Pit was initially described byRiver Gold Mines, the current owner, as being a100,000 tonne per year operation with a projected lifespan of 4 to 5 years, but company officials morerecently described it as “a seasonal operation” of just30,000 to 40,000 tonnes, during a site visit byNorthwatch. River Gold’s 2000 Annual Reportestimates 450,000 tonnes at a grade of 3.1 grams ofgold per tonne, to a depth of 35 metres. Production isexpected to commence in 2002.

Stripping of soils for exploration at River Gold’s Mishi Pit

The publicly funded Ontario The federal government providesGeological Society lake sediment a 15% tax credit, and the Provincesurveys have identified more than a 5% tax credit. Flow-through75 “targets” for precious and shares can fund prospecting,base metals in three regions of drilling, digging, trenching,northwestern Ontario, primarily surveys, food and lodging, andin the Lake Superior basin. The transportation of crew andhelicopter supported lake sediment sampling for the equipment. In its past incarnation, the flow-through shareAtikokan, Schreiber and Longlac regions identified program was recognized as being the cause of activityenhanced levels of palladium, platinum, copper and for activity’s sake, given that purchasing a flow-throughnickel. Approximately 35 properties in these areas are share could provide, dollar-for-dollar, more tax relief thannow being explored, according to industry reports. it cost. There has not yet been any assessment done of

In 2000, the Province also announced a new four-year $8million program to develop advanced technologies formineral exploration. The fund will support research onnew technologies that allow the mineral industry to lookdeeper into the earth’s surface to uncover new mineraldeposits, including theoretical and laboratory researchand “demonstration projects”, using the technology in thefield.

Perhaps one of the most environmentally threatening ofthe Province’s financial incentives is the re-introductionof flow-through shares, a move that has been matchedby the federal government. Cancelled in the early 90'sonly to return in 2001, the program provides tax breaksfor those who purchase a “flow-through share” inexploration.

the new federal-provincial program, of either itseffectiveness in stimulating new mine development, orthe environmental effect of disturbing larger areasthrough mineral exploration.

Despite the flow of provincial dollars to boost thediamond, platinum and palladium prospects, gold is stillthe leader of the pack in terms of industry interests in theSuperior basin. From Sault Ste. Marie to Quetico, thecoast is littered with active or semi-active goldexploration sites, including a dozen in each of the Nipigonand Wawa areas, almost as many in each of Sault Ste.Marie and Marathon areas, and almost twice as many inthe Thunder Bay Division, of which approximately halfare estimated to be in the Superior basin.


David Bell Mine at Hemlo. The Hemlomines have impaired downstream waterquality.

Water seeps through open pits at WilliamsMine into underground workings.

Water Pollution - Impacting Surface and Groundwater in the Lake Superior BasinMines impair aquatic ecosystems downstream of their In some cases, there seems to be a perception on theoperations. Permitted discharge levels for contaminants part of either the regulators or the companies that therein mine effluent are set higher than the Provincial Water are lots of lakes and rivers in northern Ontario, so theQuality Objectives for the protection of aquatic life. pollution of some can be accommodated. For example,Chemicals used in processing (e.g. ammonia from an assessment of the environmental effect of the Gecoexplosives, cyanide for gold extraction, oils and greases) and Wilroy mines described the impacts on Mose Lakemay be discharged, and exceedances may occur. If (over 100 ha in size) and on over 4.5 km of creekbed inmine waste is acid generating, metals may be leached Harry and Fox Creeks as “only very local”. However,and contribute to increased metal loadings downstream, zinc concentrations in the sediments exceed theaffecting the ecosystem into perpetuity. Groundwater province’s Severe Effect Level more than 15 kmcan also become contaminated from mine waste and downstream from the mines.underground workings.

The Golden Giant important component of aquatic ecosystems. WithMine, owned by current technology, once groundwater contaminationNewmont Mining occurs, in most cases will continue over the long term. Ltd. at Hemlo, meets Policy also states that the emphasis on groundwaterpermitted pollution management is on pollution prevention.limits at its dischargepoint in Lim Lake, atthe mine’s propertylimit. However,effluent does notmeet ProvincialWater QualityObjectives until itreaches theconfluence ofHayward Creek and the White River, over 20 kmdownstream from the point of discharge. When themine was under development, it was predicted that themining activity would impact water quality in Lim Lake. It is now apparent that water quality changes andbiological effects further downstream have alsooccurred.

The Geco and Wilroy mines, owned by Noranda mines are acid generating and leachate toxic. Minerals Inc. near Manitouwadge generate acidic runoff Contaminants in the workings may seep out into thelaced with heavy metals that must be treated in aquifer when the mine floods, but no assessment hasperpetuity. Metal loadings will steadily increase been completed.downstream over time. While significant reductions inzinc loadings are expected due to water treatment, evenif reductions decline to the most optimistic forecasts,loadings will still be significant. For example, with areduction in zinc loadings of 90% in Fox Creek (over1993 levels), there will still be an annual rate of zincloading of over three times background levels. Similarly,according to reports in 1995, Inco’s Shebandowan Minewest of Thunder Bay contributes nickel loadings fromthe minesite (including mine drainage and creeks on site)that are ten times higher than background inputs.

Provincial policy recognizes that groundwater is an

Groundwater at the Williams and David Bell Mines atHemlo, owned by Homestake Canada Inc. and Teck-Corona Operating Corp., is seeping outwards from thetailings area and contains elevated copper, zinc andmolybdenum. At present, there is no means of collectingseepage from thisarea, which mayworsen overtime. At GoldenGiant, the otherHemlo mine,tailingsgroundwater isalso affected,although most ofthe seepage iscollected. The underground workings of the Hemlo

At the Winston Lake Mine, owned by Inmet MiningCorp. near Schreiber, the tailings pond effluent is beingsent underground in order to flood the workings andavoid surface discharge. No monitoring of water qualityin the workings and in the surrounding groundwater hasbeen done and none is planned. Water in the workingsmay become more contaminated by acidgenerating/metal leaching materials underground and itspH is expected to decline over time. Water in theworkings will flow outwards into groundwater throughbedrock fractures and into the Whitesand River. Toexactly where is uncertain.

Summer 2001 7

MINING FACILITIES IN THE SUPERIOR BASIN - NON-COMPLIANCE REPORTS

1999 Inmet MiningCorporation

failed toxicity tests for daphnia magna - mineeffluent was lethal

Algoma Steel Inc. failed toxicity tests for daphia magna and rainbowtrout - mill efflluent was lethal; violated limits forpH in discharge

River Gold’s EdwardsMine

levels for total suspended solids violated theprovincial limits

1998 Lac des Iles Mines Ltd. Exceeded the provincial limit for totalphosphorous

River Gold’s Eagle RiverMill

Exceeded the provincial limits for total suspendedsolids, WAD cyanide, total cyanide and cyanidelimits

River Gold’s Eagle RiverMine

Exceeded the provincial limits for total suspendedsolids, un-ionized ammonia, pH and oil and greaselimits

1997 Algoma Steel OreDivision

Provincial limits for total suspended solids andRSP were exceeded

Inmet MiningCorporation

Exceeded limits for BOD5 and phosphorous

Lac des Iles Mines Ltd. Failed toxicity tests - mine effluent was lethal

River Gold’s Eagle RiverMill

Failed toxicity tests for daphia magna and rainbowtrout - mine effluent was lethal; exceeded limitsfor copper, pH and cyanide

Tailings at Empire Mine are high in arsenic.

When ore is being processed - first in themill, and in later stages in the refinery orsmelter - a number of chemical agents areas used. Chemicals used in high volumes atmine sites, primarily as reagents in themilling process, include ammonia, calciumchloride, chlorine, hydrochloric acid, coppersulphate, sodium cyanide and sulphuric acid.

Aquatic impacts from the hundreds ofabandoned mines in the Lake Superior basinare largely unknown. Although governmenthas funded site assessments at some ofthese mines, the focus of assessments hasbeen on physical safety hazards. Watersamples have not been taken and acid minedrainage/metal leaching potential has notbeen assessed.

Acid Mine Drainage and Metal Leaching (AMD/ML)A major feature of mining is that it produces anextremely high volume of waste: waste in the form ofrock, or rock that has been crushed into fines at the milland rejected, called tailings. A typical Canadian metalmine rejects 42% of mined material as waste rock,52% as tailings, and 4% as slag. The remaining 2%comprises the “values” for which the ore was mined. The mining industry in Canada generates an average of650 million tonnes of this waste per year. To put thisnumber in perspective, it represents 95% of all solidwaste generated in Canada each year. Approximately20% of this waste has the potential to create acid minedrainage and to leach metals.

Most Canadian base metal, precious metal and uraniummines work with rock that contains metal sulphidemineralization. Depending on other associatedmineralization in the rock, there is potential for the metalsulphides to oxidize when exposed to both oxygen andwater, and generate sulphuric acid and dissolved metalions when the waste material comes into contact withwater.

Acid mine drainage and metal leaching (AMD/ML) may not start for decades or more after mine waste isfirst exposed to the elements. Once this chemicalprocess begins, it can persist for hundreds to thousandsof years. There is great uncertainty around predictingrates of acid generation and time to exhaustion. Thereare some means of preventing (e.g. flooding, dry covers)and treating (of effluent) for AMD/ML, but there is nowalk-away solution. A mine that is generating or has thepotential to generate AMD/ML must be monitored intoperpetuity, and may require long term treatment.

The majority of mines studied in the Lake Superior Basineither have AMD/ML potential or analysis of potentialhas not been completed. For example, the Lac Des IlesMine owned by North American Palladium Ltd., north ofThunder Bay, will generate over 175 million tonnes ofwaste and AMD/ML potential has not yet been properlyassessed.

Acid mine drainage is the mining industry’s greatestenvironmental liability. Federal estimates of clean-upcosts for acid mine drainage at existing mines arebetween $2 billion and $5 billion.


The “kill zone” created by fumes fromAlgoma Steel’s sintering plant in Wawa.

Arsenic is a well knownpoison. Found naturallyin rocks, it is oftenreleased through theprocessing of ores formetal. Arsenic candamage the heart,nerves, liver andkidney, and can causecancers of the skin,liver, bladder, kidneyand lung. Arsenic canenter the body in foodand water, or bebreathed in fine dust.

From the Air That We Breath - Arsenic’s Journey from Stack to SoilThe coke ovens of Algoma Steel cranking out a quarter In conjunction with the plant closure in 1998, the Ministryof a million kilo’s of contaminants into the air above of the Environment undertook studies to assess the extentSault Ste. Marie, the arsenic plume in Wawa created by of arsenic contamination in the town and surroundingemissions from Algoma Ore Division’s sintering plant, a areas, and made the results public in September 1999. Athird of a tonne of hydrogen cyanide discharged to the Wawa Environmental Steering Committee, made up ofair each year from the Hemlo Gold Camp near The Ministry of the Environment, Algoma Steel, theMarathon: the Lake Superior basin lives and breathes Township of Michipicoten, and the Algoma Health Unit,mining. commissioned additional studies on arsenic exposure for

Air discharges are from ventilation of undergroundmines and diesel-fueled equipment in small part, but inmuch larger part from the milling, smeltering, sintering, Wawa has been mappedand refining of the ore that is done to transform it from into three zones, withrough rock to marketable metals. Zone 1 being the area of

A century of iron mining began in Wawa with thediscovery of the first iron formation in the area in 1897,and the Helen Mine opening soon after. The sinteringplant opened in 1939 to process the ore. By 1970 theHelen and the Victoria pits and many smaller shafts hadbeen abandoned, with the ore production continuingfrom the MacLeod mine.

The Wawa operation consisted of both mines and asintering plant, producing siderite and arsenopyrite, asulfide-and arsenic-bearing iron ore. The sinteringprocess combined the ore with "reverts", iron-bearingwastes from steelmaking. A conveyor belt was used topass the materials over flames in order to form the raw

material forAlgoma's SaultSte. Marie,Ontario blastfurnaces.Massiveamounts ofsulfur andarsenic werespewed intothe air.

The provinceof Ontario

recognized that there was a problem, but provided anunusually low-tech solution. Algoma Ore Division wasonly required to control SO2 emissions when the wind The Township of Michipicoten is pursuing a $55 millionwas blowing towards the town. So the company simply class-action lawsuit against Algoma Steel Inc., holdingdidn’t burn sinter when the wind blew the wrong way. the company responsible for the arsenic in the soil. TheThe net result was a forty kilometre “kill zone” lawsuit is still wending its way through the courts and, todownwind of the old sintering plant. The boreal forest date, no remedial or clean up options have been identifiedcover has been erradicated, and extremely high levels of by the Ontario Ministry of the Environment or Algomaarsenic are found in the soils in and around the town of Steel.Wawa.

the residents of Wawa. Further work is currentlyunderway to study the risk to toddlers.

lowest soilconcentrations ofarsenic and Zone 3being the area of highestconcentration. Most ofthe town is Zone 1 and2, with Zone 3 being theoutlying area in thegeneral direction of theformer sinter plant site.Concentrationsapproach 1,000 ?g/g inthe surface soil near theAOD gate. Soil arseniclevels exceed the MOE soil cleanup guideline of 20?g/gover a large area of the fume kill zone. All schoolplaygrounds and public parks, however, were found tohave soil arsenic levels below the 20 ?g/g clean-upguideline.

Initial assessments of health risks posed by arseniccontamination prepared for the Wawa EnvironmentalSteering Committee identify residents of Zone 1 ashaving a 1 in 100,000 risk of skin cancer, residents ofZone 2 as having a 6 in 100,000 risk, and residents inZone 3 with a risk of 1 in 10,000.

A study of arsenic uptake into firewood identifiedelevated levels of arsenic in local edible mushrooms, andwarned against their consumption.

Summer 2001 9

The Lac Des Iles Mine will quadruple production.

One of the largest mines in the Lake Superior basin is projects are likely to have significant adverse effects”going larger. North American Palladium’s mine at Lac given their size. But, according to sources in thedes Iles has begun commissioning their expansion, provincial government, the company has “worked withmoving from a 2,400 tonnes per day mill production to the Department of Fisheries and Oceans” in order to15,000 tonnes per day by the end of 2001. The massive avoid having to do an environmental assessment of thescale of the mine will be visible from expansion. Industry reports boast thata distance, with waste rock piles the mine received the necessarytowering above the local terrain at 80 construction permits just 60 daysmetres in height, twice as high as the after deciding to expand. highest natural feature in the area.

At full production the Lac Des Iles piecemeal, with the Ministry of theMine will be producing approximately Environment amending already15,625 pounds of palladium, 1,500 existing approvals to accommodatepounds of platinum, a thousand the increases in air discharges andpounds of gold, 6 million pounds of liquid mine effluent treatment andcopper and 2 million pounds of nickel discharge. One of the severalper year, for a projected 17 years. provincial approvals is a water-takingThe mine is the biggest palladium permit that allows the company toproducer in Canada, with a draw 30 million litres of water perworkforce of 130 people pre- day. The Ministry of Northernexpansion, expected to rise to 275 at Development and Mines accepted anfull production. The expansion will include the amended closure plan, but are not required by currentconstruction of a new mill, warehouse, maintenance shop, law to review it in-depth. assay laboratory and water treatment plant in addition tothe expansion of the mine itself.

Under federal environmental assessment law, any mine affect their unceded traditional, aboriginal and treatyexpansion that would increase ore capacity by 50% or rights in and around the operations’ area. There have1,500 tonnes per day is to go through a comprehensive been only initial discussions between North Americanstudy - a more thorough review than simple projects Palladium Ltd. and the First Nation.require - because, as the regulation states, “certain

Provincial reviews have been

Gull Bay First Nation has identified a number of mine-related environmental impacts that could adversely

At Work in the Mines - Silicosis a Major Concern in Hemlo CampSilicosis is a respiratory disease that most people think of incidence of silicosis in the Hemlo mines.as part of mining history. But in the Hemlo gold camp, 14workers with silicosis currently have cases before theWorkplace Safety & Insurance Board. The local UnitedSteelworkers staff representative is aware of least 2more cases and suspects numbers may be even higher.

Silicosis is caused by exposure to silica dust, which someone else’s x-ray.”comes from drilling, blasting and grinding ore, andworking with backfill pastes, which contain crystallinesilica quartz. The disease causes shortness of breath, andcan lead to cancer or heart failure. Silica dust can becontrolled through air quality controls, includingventilation, spraying water to control dust, and throughsafe work practices, such as the use of respirators.

“Miners’ health is being damaged through a combinedeffort of industry and the Ministry of Labour”, explainedstaff representative Mose Shepherd, alarmed by the high

“The Ministry of Labour keeps lousy records, and inrecent years has started contracting out the x-rays ofminers’ lungs. We’re seeing lots of cases of poor qualityfilm being used, problems with tracking and matching,and some cases of a miner being told the results for

Despite the confusion created by contracting out of the x-rays and poor record-keeping, the evidence is mountingthat there are serious health concerns in the Hemlocamp. With 16 cases now identified, more miners havebeen getting X-rays since the alarm bell was soundedearlier this year.

But the silicosis may not show up until 15-20 years afterthe exposure to silica dust.

Continued on page 14


A major collapse in the underground mine has created a gaping hole.

Costs of Clean-Up, Closure and Perpetual Care ? Your Tax Dollars at WorkThe Ontario mining industry produces $5 billion worth of As a result of relaxation the rules around financialminerals per year. With such a wealth of mineral assurances for mine closure costs, companies can nowresources in the province, high standards of care and “self-assure” their financial commitments to mineclean-up by industry should be affordable. However, closure. Passing a financial means test means aclosure and clean-up costs may shift to taxpayers company may not be required to post realizable financialthrough corporate default or forfeiture, and now the offer securities for the cost of closure. This assumes thatof “exit tickets” gives companies the option of historical performance is an indicator of future financialtransferring long-term liabilities for a depleted mine strength - a gamblers assumption at best.property back to the Province, making cost of future carea public responsibility.

Government policy requires that, at the start-up of a companies operating in Ontario. After mine close-out,mine, an approved closure plan detailing all clean-up companies may now voluntarily surrender mining landsrequirements must be in place, with financial securities to the Crown, making themselves exempt from anyassured by the mining company sufficient to cover the future environmental liabilities, even if they arise as acost of implementing the closure plan. However, the result of the companies’ actions. The Renabie Mine,estimate of costs for mine closure and long term care is straddling the height of land that divides the Lakeexempt from the public Access to Information law. If Superior and Arctic watersheds, may be the first mineclosure work and costing is underestimated, the public to get an “exit ticket” in Ontario. Owners Barrick Goldhas no way of establishing whether realizable financial Corp. and Homestake Canada Inc. have proposed ansecurities for mine closures have actually been posted by exit ticket fee of $102,290. Surface water flowing frommining companies. the property contains elevated levels of zinc, cobalt, iron

The Macleod Mine was operated by Algoma Steel Inc.in Wawa for 100 years and recently ceased productionwithout an approved closure plan in place. Without anapproved closure plan, there is no basis for estimatingclosure costs so it is unlikely that the mining company willpost adequate financial securities. In the case of theMacLeod Mine, if Algoma Steel Inc. defaults, thentaxpayers will be left to finance the perpetual care of theMine properties, including the long term treatment ofmine effluent.

At the Hemlo mines, estimated closure costs andassociated financial securities posted by the miningcompanies, in conjunction with the mine closure plans,are much lower than real costs are likely to be. Closureplans for the mines do not include appropriate disposalor treatment of massive piles of acid generating /leachate toxic waste rock, nor do they evaluate the riskof groundwater contamination to the area through seepsfrom the tailings areas and underground workings. Asa result, the official closure cost estimates may be onlya fraction of real costs.

Major changes in legislation in the Mining Act in thelate 1990's have increased the public’s financialresponsibility for the long term care of mines.

Another product of the mid-90's relaxing of miningregulation, “exit tickets” are now available to mining

and copper, and acid mine drainage/metal leachingpotential has not been fully assessed. In 1995, companyreports declared that reclaimation work had beencompleted, except for some revegetation of the tailingsareas. But in 1998 sink holes began to appear on thesite, and in 1999 part of the underground mine collapsed,creating a gaping hole through to the undergroundworkings. It is quite possible that the cost of fencingalone would exceed the proposed $102, 290 exit feeover time.

Summer 2001 11

Waste rock piles at Leitch Mine withalmost no revegetation - 35 years after

closure.

Regreening: Some Benefits and LimitationsAt major mines, regulations require that companies revegetate disturbed areas.Planting tree seedlings and sowing grasses and legumes after site disturbance ispart of ongoing remediation. Revegetation helps to stabilize surfaces and improveaesthetics. While revegetation is required at producing mines, there are untoldnumbers of exploration sites where overburden has been stripped in order toexamine rock surfaces. The cumulative impact of these sites on ecosystemproductivity is unknown.

Terrestrial impacts from mining can include a significant aesthetic impact. Contouring and revegetation at close-out can improve site aesthetics. This type ofreclamation work has been important at the Shebandowan Mine owned by IncoLtd., since it is located on Lower Shebandowan Lake, which has important cottageand sport fishing value. Other impacts include erosion and dust.

In some instances, vegetation on mine waste may accumulate elevated levels ofmetals from the waste and these may be consumed by wildlife depending on theiruse of the site and the availability ofmetals. Currently, in Ontario,revegetation of mine waste does notrequire a serious evaluation ofsusbsequent impacts from metaluptake into the food chain. At theRenabie Mine the Missanabie CreeFirst Nation is questioning the impact ofthe revegetated tailings area on thewildlife. Wildlife makes extensive use ofthe site, and may consume vegetationand salts on the tailings surface.

Perpetual Care Requirements - the Mines that Never Go AwayAfter a mine has been closed, after buildings have been Perpetual care activities include treatment of effluentdemolished and most structures removed, openings to from acid generating/metal leaching waste. Waste cansurface have been capped, regrading has been done, and continue to generate contaminants for thousands ofrevegetation has been initiated, then the mine moves into years. At the Geco and Wilroy mines, owned bya state of perpetual care. This means that the site must Noranda Minerals Inc. near Manitouwadge, the volumebe cared for forever, or at least into the forseeable of effluent requiring long term treatment is estimated tofuture. All major mines require perpetual care for be 90 cubic feet per minute. Treatment for minestructural stability. In many cases, mine effluent will effluent from the underground workings at the Macleodrequire long term treatment. Mine in Wawa will begin in approximately 10 years,

An example of perpetual care is the ongoing inspectionof the stability of dams that contain tailings. Tailingsdams have failed due to weaknesses in construction orfrom overtopping; overtopping can occur because thespillway is inadequate, or because beavers have built Planning for perpetual care involves playing with manydams in the area. Major tailings dam failures have unknowns, some of which have will have financial oroccurred in the Lake Superior Basin at the Zenmac environmental price tags attached. Tailings, the Tribag Mine and the Coppercorp Mine.

The Hemlo mines, the WinstonLake Mine and the ShebandowanMine all have impounded tailingsthat have the potential to generateacidic and metal contaminateddischarge if they are not properlymanaged in perpetuity. Thesemines have planned to flood theirimpounded tailings at closure,thereby blocking the exposure ofthe tailings to air and preventingthe onset of acid generation/metalleaching. In engineering a watercover to flood the tailings, a rangeof weather conditions (e.g. periodsof drought) and the effect ofweather on maintenance of thewater cover must be modeled. However, the effects of climatechange do not appear to have beenaccounted for in modelling futureweather conditions at these minelocations. Forecasting for climatechange in the 1990’s predicted areduction in precipitation in theGreat Lakes Basin of up to 25% -a reduction which could seriouslyaffect efforts to maintain watercovers over the tailings.

when the underground mine workings flood and begindischarging to the surface. Treating mine effluent iscostly, and the sludge precipitated from treatment mustalso be disposed of.


Partially remediated Zenmac tailings near Schreiber

Abandoned Mines - Not Gone and Not ForgottenA mine becomes orphaned when it no longer has an In some cases, abandoned mines are remediated as partowner. But a mine may also be considered abandoned if of the closure work for an operating mine on the same orthere is an owner that is unwilling or financially unable to an adjacent property. One such case is Inmet’s Winstoncarry out the necessary remedial work or ongoing care. Lake Mine. As part of the closure work, the CompanyThere more than 6,000 inactive or abandoned exploration cleaned up the old Zenith Mine, which had operated ator mining/aggregate sites in Ontario, with a significant the turn of the last century. However, for many othernumber of them found in the Lake Superior Basin. abandoned mines there has been little or no action taken

Abandoned sites may have suffered only from strippingand trenching or a single shaft with a waste rock pile. The Tribag Mine is located just west of the BatchawanaLarger sites may include old buildings, debris, fuels and River, which is a prime fishing and recreational river.oils, chemicals, waste including tailings, and many pits The main tailings dam failed in the mid-80's, releasingand shafts, often scattered throughout the bush. tailings into the Batchewana River and Lake Superior.

Ontario’s abandoned mines program has been the good-news story of recent years, with $27 million dollarscommitted to the clean up of abandoned mines, includingwork on some of the worst cases in the Lake Superiorbasin.

In the early 1990's a nearby resident began contactingthe provincial government about the Zenmac site, anabandoned property near Schreiber. On two occasions,blowing orange dust from the Zenmac tailings wasreported as a forest fire. The Province paid for a siteassessment before the site reverted to the Crown in thelate 1990’s, and in2000, partialreclaimation wasundertaken as part ofthe Province’sabandoned minesprogram. The tailingswere covered withoverburden andrevegetated, in order tostabilizing the tailingssurface.

Although the tailingshave now beenstabilized andrevegetated, drainage from the site into Lake Superiorcontinues to be toxic. A grab sample taken in June, 2001,showed elevated levels of cadmium, cobalt, nickel andzinc. Without further remediation, the tailings willcontinue to leach contaminants for an unknown period oftime, perhaps indefinitely.

to date.

Consultants reports have indicated that there is potentialfor tailings containment to fail again in the future, andhave noted that a transformer on site may contain PCBs.An 80 cubic metre pile of white powder of unknowncomposition is slowly being washed downhill. The site isconsidered abandoned, but as of 1993 it was owned bySunburst Resources (1991) Inc. The Ministry ofNorthern Development and Mines wrote to the companyasking them to clean up the site. The company did notrespond, but it appears there was no followup action.

In the mid-1970’s, beavers building a dam in the tailingspond at the Coppercorp Mine nearBatchawana Bay caused a tailings spillwhich washed out Highway 17, andflowed into Lake Superior. Consultantsvisiting the site in 1991 found that a 3.5 mhigh beaver dam was impounding a largevolume of water; only their chance visitadverted another disaster. In 2001, twogovernment employees happened to be outon a reconnaissance at the CoppercorpMine and discovered that a massivebeaver dam was retaining about 10hectares of water in the tailings area. Inboth cases, discovery was by chance,rather than through regular and reliablemonitoring.

The Ministry of the Environment has spentapproximately $250,000 on reclamation work at the mine,but a court settlement resulted in only approximately$50,000 being recovered from the owner. The Ministryof Northern Development and Mines has now allowedmine ownership to revert to the Crown, makingtaxpayers responsible for the mine’s remediation andperpetual care.

Summer 2001 13

Mining In The Lake Superior Basin - A Word From the U.S.Ore boats and ore docks adorn tourists' postcards from alter the land and the flow of water, filling wetlandsLake Superior. with tailings, replacing lakes and forests with massive

Far from pretty, they testify to the emblematic stature ofmining in the Lake Superior basin. And for good High water levels needed to float heavier and heavierreason. For more than a century we've gouged, blasted loads of ore make the lake itself a threat to fragileand scraped metals from the basin's ancient rocks, aquatic habitats. Landowners on Whitefish Pointextracting millions of ounces of gold and silver, billions pointed to the Lake's historically high lake levelsof pounds of copper and hundreds of millions of tons of reached in the late 1990's - more than four feet higheriron ore. than in 1950 - as the cause for Superior's abrupt

Mining and steel making built cities, bringing workers toDuluth, Sault Ste. Marie, Thunder Bay, the KeweenawPeninsula and numerous smaller communities. Names While mining scars the landscape, the boom and bustsuch as Sinterville, Steelton and Taconite Harbor attest nature of mining jobs takes its toll on localto the single purpose for settlement. communities. Even the most long-lasting of the basin's

Though the new millenium has seen iron mining and steelmaking turn sour, mining and metals processing stillemploys thousands of workers in the basin, movingmillions of tons of rock and drawing millions of gallonsof water. And while iron mining and steel making seemin decline, new discoveries of platinum, palladium, And when desperate communities plead for help, therhodium, copper, nickel gold and other precious metals environmental consequences of development take ain the Lake Superior region have spurred renewed back seat to the need for cash flow. At the nowactivity. shut-down Copper Range mine at White Pine on

A new mineral rush is on and high tech explorationcoupled with old mining practices threatens the naturalresources of the region with renewed mineraldevelopment. Near Minnesota's Boundary WatersWilderness and across Northeastern Minnesota mininginterests such as PolyMet Mining Corp. and ComincoAmerican Inc. have already made initial findings. PolyMet is pursuing efforts near Silver Lake outside of But will we learn the hard lessons taught by more thanBabbitt and Cominco is interested in using the ore a century of mining on Lake Superior? We face a newcrushing machinery at LTV's Hoyt Lakes facility. century with the still un-met challenge to make Lake

The economic benefit of mining exacts an environmental cost. Copper mining on the Keweenawpeninsula has left a legacy of old mines and mountains ofrubble. In its midst lies the Torch Lake Superfund site,a result of copper processing there. Other historicworsts are Reserve Mining's dumping of taconite tailingsin the Lake from 1956-1981, and the now haltedCopper Range smelter which for decades launchedmercury, lead and arsenic into the air over LakeSuperior by the ton. Recent proposals to expand minesnear Marquette, Michigan include a plan to drastically

rock piles and cavernous pits.

encroachment upon fragile sand banks, on-shorebuildings and wetlands.

mining districts, Minnesota's Iron Range, with aprojected life-span of 200 years (a blink of an eye forLake Superior) is showing signs of wear. After minesshut down, high paying jobs turn to high riskunemployment.

Michigan's Upper Peninsula. When an acid leachingproject with potentially devastating ecologicalconsequences was proposed on the heels of thecompany's 1995 lay-offs, local officials, merchants andlaid-off miners fiercely defended the risky proposal asa solution for a lack of jobs, urging state and federalregulators to ignore environmental risks.

Superior a demonstration zone for zero discharge ofpersistent toxic pollution and ecosystem stewardship.And as fervently as we can envision healthy, diverseeconomies, clean water, clean air and renewedlandscapes, the shifting shape of mining's globalfootprint poses serious challenges for Lake Superior'sfuture.

By Bob Olsgard and Eric Uram, Lake SuperiorAlliance. Reprinted, in part, from the October 1997issue of the Lake Superior Vision, the newsletter ofthe Lake Superior Alliance.


Support provided through small grants from theLake Superior Alliance and MiningWatchCanada made this publication possible. Ourthanks to these organizations and to all of theindividuals who donated their time and talents.

Want to learn more? Try these!

At Work in the Natural World: Mining and MillingOntario’s Natural Resources. 1999. An overview of forestry and mining in Ontario,including a description of crown land managementand key mining issues in Ontario, Canada’s primarymining jurisdiction. Available from Northwatch.

Environmental Mining Primer: A Citizens’ Guideto Issues, Impacts, and Options in MineralDevelopment. 2001. The essential reader onenvironmental impacts of mining. Describes miningand milling processes, and details impacts on waterand land. Available from MiningWatch Canada.

To learn more about mining & environmental issues Silicosis - continued from page 9in the Lake Superior basin, contact:

The Lake Superior Alliance, an international coalitionof community groups, committed to working togethertoward a cleaner future for Lake Superior.W3060 Cook Road, Sarona WI 54870Tel: 715-635-8171 or 888-281- 1735Fax: 888-281-1735www.superioralliance.org

Great Lakes United, an international coalitiondedicated to preserving and restoring the GreatLakes-St. Lawrence River ecosystem.Buffalo State CollegeCassety Hall1300 Elmwood AvenueBuffalo, NY, 14222Tel: 716-886-0142Fax: 716-886-0303www.glu.org

To learn more about mining and relatedenvironmental and community concerns, contact:

MiningWatch Canada, a pan-Canadian initiativesupported by environmental, socialjustice, Aboriginal and labour organisations.Suite 508, City Centre Building880 Wellington St.Ottawa, Ontario K1R 6K7tel. (613) 569-3439fax: (613) 569-5138www.miningwatch.ca

To learn more about mining and the environmentand other issues in northeastern Ontario, contact:

Northwatch, a coalition of environmental and socialjustice groups in northeastern Ontario, addressingregional concerns such as land use, natural resourcemanagement, mining, logging, waterquality, waste, and energy use.Box 282North Bay OntarioP1B 8H2tel 705 497 0373fax 705 476 [email protected]

A seven-page questionnaire designed to help determinethe extent of respiratory problems among the 1,000Hemlo gold miners has been developed by theSteelworkers and the Ontario Health Clinic for OntarioWorkers, based in Sudbury. The questionnaire asksworkers about recurrent coughs, wheezing and chestailments, and will be analysed by health clinic staff. Onlytwo of the three mines in the Hemlo Camp are organizedworkplaces. The third, the Williams Mine, is without aunion. Workers from all three mines will be included inthe survey. The Ministry of Labour says it has reviewed two yearsof air quality data and concluded that exposure is withinacceptable limits, with exedences representing less than2% of the total data over two years. But health expertssay that air quality data doesn’t tell the whole story,because it fails to take into account high incidents ofexposure in extremely dusty conditions.

A study in March 2001 by the Ministy of Labour at theGolden Giant Mine showed some significant problems,even with the limited sample collection. Samples werecollected by placing sampling pumps on 20 workers overtwo days. Several workplaces were found to be belowcompany standards, with poor ventilation, equipmentmalfunctions, damaged fans, danger of creating muckruns if water was used to suppress the dust, and smokyconditions. The report concluded that all samples were“within the historical ranges as measured by the GoldenGiant Mine”, that the company approach of stoppingwork until a problem is addressed is a good one, but thatthe workforce had not been made aware of thestandards or of who is responsible.

Summer 2001 15

List of Mines and Areas of Mining Activity in the Lake Superior BasinOperating Mines1-3 The Hemlo Gold Mines include both open pit and

underground operations. The undergroundworkings for the three Hemlo mines areconnected underground. The David Bell andWilliams mines are jointly owned by HomestakeCanada Inc. and Teck-Corona Operating Corp. The Golden Giant Mine is owned by NewmontMining Ltd. Closure of the mines is predicted for2012 for Williams, 2006 for David Bell and 2005for Golden Giant.

4 The Lac des Iles Mine produces palladium and isowned by North American Palladium Ltd. Mineproduction began in 1993 and predicted closure is2011. The mine is currently under expansion from2,400 tonnes per day to 15,000 tonnes per day.

5-6 The Eagle River Mine and the EdwardsProject are gold mines owned by River GoldMines Ltd. Ore from the Edwards Project istransported to Eagle River for processing. Themost recent expansion at Eagle River will involvethe development of the Mishi Pit.

Mines Under Closure7-8 The Goudreau Mines gold mines were shut down

in the early 1990’s and placed under temporarycare and maintenance. Magino Mine is ownedby Golden Goose Resources Inc. Kremzar Mineis owned by Canada Tungsten Inc.

9 Iron mining around Wawa began in 1899 andcontinued on and off for the next century. TheMacleod iron mine is owned by Algoma SteelInc. and was the last mine in the area to close.

10 The Winston Lake Mine produced zinc from1988-1998 and is owned by Inmet Mining Corp.

11 The abandoned Zenmac/Zenith zinc mine islocated less than 1 km from Winston Lake andoperated between 1898-1902 and 1966-1970.Inmet Mining Corp. has undertaken somereclamation of the Zenmac/Zenith Mine.

12-13 The Geco and Willroy copper/zinc mines arelocated within a few kilometers of each other andboth are owned by Noranda Minerals Inc. Gecooperated from 1957-1995 and Willroy from 1955-1977.

14 The Shebandowan Mine produced copper/nickel

concentrate and operated from 1971 to 1992. It isowned by Inco Ltd.

15 The North Coldstream Mine produced copper,gold and silver and operated into the 1960’s. It isowned by A.C. West Ltd.

16 The Wawa Goldfields contain many abandonedmines that were developed starting in the early1900s. The Citadel or Surluga gold mine ownedby Citadel Gold Mines Inc. was operated from1968-1991.

Abandoned Mines with Tailings18 The Leitch Mine produced gold and silver. As of

1995, the mine was owned by Teck Corp.

19 The Dorion Mine produced lead and zinc.

20 The Tashota-Nipigon Mine produced gold, silverand copper.

21 The Quebec-Sturgeon River Mine producedgold.

22 The Pan Empire Mine is a past producer of goldand silver and is currently being explored byRoxmark Inc.

23 The Zenmac Tailings was the site used formilling ore from the Zenmac/Zenith Mine.

24 The Cline Mine produced gold and silver.

25 The Coppercorp Mine was recently owned byMaybrum Inc. before it reverted to the crown. Itproduced silver, gold and copper.

26 The Tribag Mine produced copper, silver andgold. As of 1993, it was owned by SunburstResources (1991) Inc.

27 The Lucinda Mine produced lead, zinc andcopper.

28 The Prace or Sill Lake Mine reportedly producedlead.

Advanced Exploration Projects

29 Spider Resources has a 200 square kilometreclaim in the Wawa area for diamond exploration

30 Polymet Mining Company and their explorationpartner Geomatic are developing a palladiumproperty 10 kilometres north of Marathon

31 River Gold Mine expects to bring the Mishi Pitopen pit gold mine into operation in 2002

32 Moss Lake Gold Mines is a gold property nearShendowan, west of Thunder Bay.

a report on mining activities and impacts in the lake ... -...

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