By: Mining weekly

The legal action, launched in Ontario Superior Court on February 10, claims that McEwen has failed to meet its financial commitments and has caused environmental harm on AAN’s territory.

AAN Chief June Black stated that McEwen had failed to make yearly compensation payments in the form of shares to the First Nation for over a decade and had allowed tailings leakages that harm fish, wildlife, and the broader ecosystem.

"Our lawsuit says that McEwen Mining is in violation of its commitments to Apitipi Anicinapek Nation by refusing to make annual compensation payments of shares to AAN and by causing preventable environmental harm," she said. "They have known this for some time and refused or failed to fix these problems. They have driven us to have to go to court."

Citing the Ontario Ministry of Environment, Conservation and Parks, AAN stated that McEwen had contravened environmental laws due to historical and ongoing seepage from the Black Fox mill tailings management facility.

The Black Fox Mine has changed ownership multiple times since it began operations in 2011, initially under Brigus Gold before being acquired by Primero Mining in 2013 and later by McEwen in 2017.

AAN argues that McEwen is bound by the IBA that was signed when the mine was first developed, despite the company's assertion that AAN did not sign the 2017 transfer agreement.

“AAN consented to the mine being built and operated on the basis of stringent environmental standards, monitoring, and oversight, as well as financial benefits to offset potential harm,” said AAN negotiator Lance Black. "If a company takes all the benefit and fails to deliver its side of the bargain, this amounts to a betrayal and a setback for reconciliation."

MCEWEN RESPONDS

In response, McEwen issued a statement denying the allegations and affirming its commitment to environmental protection and regulatory compliance.

“We do not believe there is cause for concern about harm to the environment or the public from the operation of the tailings facility,” the company said. “Our tailings facility is operated under an approval issued by the Ontario Ministry of Environment, Conservation and Parks and is subject to frequent inspections by provincial and federal authorities.”

Regarding the financial dispute, McEwen stated that the obligation to provide payments of 25 000 Brigus common shares a year to AAN predated its acquisition of the Black Fox mine.

“Brigus ceased to exist after its purchase by Primero in 2013; McEwen believes that Brigus shares and McEwen shares are not interchangeable on a one-to-one basis and that we are not responsible for shares that were not delivered by Primero during its ownership of Fox, among other things.”

McEwen also highlighted its contributions to AAN since acquiring the mine, claiming it had provided C$20-million in direct and indirect benefits.

The company further stated that an AAN representative, funded by McEwen, had been provided workspace at the site for communication and transparency but had not attended for more than a year. “We believe it would be highly beneficial to have an AAN representative present at Fox on a daily basis,” the company said.