A recent court decision has addressed Minto Metals Corp.’s unpaid royalties to Selkirk First Nation and given the Yukon government the go-ahead to plan for reclamation and closure of the Minto mine site, according to a territorial government press release issued on July 27.
Minto Metals Corp. is the company that suddenly abandoned the Minto mine site located on Selkirk First Nation settlement land in May. The Yukon government quickly stepped in, hiring a contractor to deal with water treatment and management.
On July 24, the Supreme Court of British Columbia issued two orders relating to Minto Metals Corp. and the Minto mine site.
PricewaterhouseCoopers Inc. has been appointed as manager and receiver of all property, assets and undertakings of Minto Metals Corp.
The court-appointed receiver can sell the mine and assets to a single purchaser, according to the government statement.
READ MORE: Former Minto workers’ claims won’t be heard by receiver
On behalf of Minto Metals Corp., PricewaterhouseCoopers Inc. will pay US$1.34 million (approximately $1.77 million in Canadian currency) earned from the sale of concentrates to the Yukon government on account of the Quartz Mining Act royalties, and the Yukon government will turn that money over to Selkirk First Nation, per an order.
All involved parties agreed on the resolution of royalties, according to the government release and an update on the receiver’s website.
“[The July 24] court decisions provide legal clarity to support long-term planning for Minto mine,” Energy, Mines and Resources Minister John Streicker said in the release.
“We believe it is a good outcome for the Selkirk First Nation and the Yukon, particularly as it relates to unpaid royalties. While we acknowledge the possibility of the mine reopening at some stage in the future, our immediate priority remains ensuring that the environment is protected.”
Per the order, the Yukon government will go ahead with regulatory activities for the mine and will continue dialogue with Selkirk First Nation relating to environmental matters at the mine site.
The statement indicates the government is focused on protecting the environment at the site as water treatment continues and storage capacity grows. The government holds financial security for the site and wants to use this money to pay for reclamation.
The proceedings are being transferred to, and lien claims will be addressed in, the Yukon Supreme Court.
Court documents filed against Minto Metals Corp. outline a total of more than $19 million outstanding. That’s in addition to $42.2 million in liens registered against the mine by more than two dozen separate applicants, according to information previously provided by the territorial mine’s department.
READ MORE: $42.2M in liens filed against abandoned Minto mine
Contact Dana Hatherly at dana.hatherly@yukon-news.com