ONGOING ENVIRONMENTAL MONITORINGFrom Page 20-1 and 20-2 of the RPA technical report dated November 30, 2020:
The consultant's recommendation was for Orovalle to continue to monitor its operations, undertake investigative studies, and engage with the authorities to reach a resolution of the SE discharge matter and ensure compliance with applicable environmental standards.
On-going monitoring at the Orovalle Operation is focused on assessing aspects of the operation that can influence the restoration of an impacted area.
Tailings and water samples are collected monthly for testing from the Boins mine (Figure 201) and the results are reported to authorities. Water samples include samples taken from within the TSF, surface waters at the mine, subterranean underground water and the Caxa River (upstream and downstream of the Orovalle Operation). Figure 20-1 also shows infrastructure owned by Mineira del Corcoesto (labelled La Veiga Basin), a wholly owned subsidiary of Edgewater Exploration Ltd (Edgewater). While this infrastructure is not the responsibility of Orovalle, recycled water from Edgewater’s La Veiga TSF is pumped to the treatment plant for full use and therefore this infrastructure is reflected on the water management plan. The authorities are responsible for processing the data submitted and analysing any trends in the results.
Ongoing studies have taken place since 2014 to understand and inform water contamination risks and related management thereof. These have included:
• Environmental improvement in the space affected by mining activity in the Boins mine (Belmonte de Miranda, Asturias). Planning phase. Dates: 11/02/2016-11/06/2016.
• Environmental improvement in the space affected by mining activity in the Boins mine (Belmonte de Miranda, Asturias). Phase I expansion. Dates: 20/12/2016-31/12/2017, extended to 30/06/2018
• Evaluation of the electrobiological reactor system for selenium removal in pouring water.
• Implementation of an early warning system for the management of the waters of the Boins mine (Belmonte de Miranda, Asturias). Dates: 01/09/2017-01/02/2018, extended to 31/07/2018.
• Technical work and advice for the Orovalle Strategic Surface Plan. Dates: 01/10/201831/12/2019, extended until 30/06/2020.
• Hybrid technologies for the on-site stabilisation of mining waste using nanomaterials, organic additives and phytoremediation. Dates: Started in November 2019. Contract date 03/01/2020-30/11/2021. Co-financed: Call for grants aimed at the implementation of research and development projects in the Principality of Asturias for the 2019 financial year (RIS3-Company Program) reference IDE/2019/000265.
• Modification of the pretreated stage of the RO Plant to improve rack efficiency. Dates: 01/09/2020 – 30/09/2020.
In Orvana’s Q3 FY 2020 report, regarding water management risks, the following is stated:
• Orovalle continues to work through an environmental matter (since 2014) involving selenium discharges into the Caxa River in Asturias, Spain.
• The Caxa River flows past the El Valle-Boins mine well as other industrial properties owned by third parties. In Orvana’s opinion the results of scientific studies conducted by Orvana have confirmed that past and prevailing levels of selenium in waterways impacted by the Orovalle Operation do not constitute a health or environmental risk.
• The Spanish Water Authority has taken the position that the levels of selenium in the Caxa River flowing past El Valle-Boins mine exceed the levels permitted by applicable regulations as a result of discharges attributed to the Orovalle Operation which may not be in compliance with some of the Orovalle Operation’s permits (the SE Discharge Matter).
• In recent years, Orovalle has received approximately €955,000 in fines relating to these matters and may face further additional fines or other sanctions, including the revocation or suspension of certain permits, in the future. Orovalle is appealing the outstanding fines (€629,000) and the enforcement of certain fines has been suspended pending the related legal matter.
• A judge of the legal court of the Grado municipality (a municipality in the region of Asturias) has conducted an investigation into the potential commission by Orovalle of a reckless crime under the Spanish penal code relating to the SE Discharge Matter. After six years of investigation, during the third quarter of FY 2020 the Grado Court issued the order to commence an oral trial to address the SE Discharge Matter in the legal court of Oviedo (the capital of Asturias). A date for the commencement of the oral trial has not been set as of the date of this Technical Report.
• Orovalle states that it has been working to remediate the SE Discharge Matter through various activities including the implementation of a reverse osmosis water treatment plant in September 2014 and the development of a long term water management plan which is noted to be in progress at the time of this review. Orovalle has reported that these remediation efforts appear to be addressing these matters.