Elko Daily articleQueenstake, NDEP sign consent decree
By ADELLA HARDING- Staff Writer
Wednesday, October 14, 2009 8:35 AM PDT
ELKO — Nevada Division of Environmental Protection announced Tuesday the agency and Yukon-Nevada Gold Corp. subsidiary Queenstake Resources have signed a consent decree for restarting the mill at Jerritt Canyon.
The final approval to restart the mill, however, will come from Elko District Court, NDEP spokeswoman Jill Lufrano said. The court received the decree Monday.
“We have no idea how many days the court will take to approve the decree,” she said.
The decree follows NDEP’s order on June 5 to shut down the mill after Queenstake failed to meet a May 30 deadline for installing new mercury air emission controls.
Lufrano said that once the mill was shut down, NDEP looked at all environmental issues at Jerritt Canyon for the consent decree, which she said consolidates all the issues in one document that provides for penalties should the company miss deadlines included in the decree.
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Queenstake also has agreed to pay a $550,000 settlement.
“We are satisfied with the agreement that we’ve reached with Queenstake as it addresses our environmental concerns at the Jerritt Canyon Mine,” said NDEP Administrator Leo Drozdoff. “NDEP staff will closely monitor activities to ensure the Jerritt Canyon Mine is in full compliance with the agreement and all appropriate regulatory requirements.”
Queenstake has roughly 100 employees to begin operating the mill again to process roughly 800,000 tons of gold ore in stockpiles left when the mine closed in August 2008, Yukon-Nevada spokeswoman Nicole Sanches said Tuesday.
Yukon-Nevada President and Chief Executive Officer Robert Baldock said Tuesday “the company has worked very hard to bring all of the required changes necessary to satisfy the environmental and operational issues at Jerritt Canyon.
“The company is now very confident that the overhaul of the mill and other investments made by the shareholders over the last six months will allow the company to operate profitably and satisfy all of its obligations to the community.”
Yukon-Nevada laid off 400 people when it shut down the mine in 2008, and former employees are still awaiting half of their severance pay. Employees filed a class action suit in U.S. District Court over their back pay and medical bills.
The shutdown also left unpaid vendor bills that resulted in lawsuits in Elko District Court, and the former mill operator, Golden Eagle International, has filed a lawsuit over alleged breach of contract and financial damages.
“I hope they get back up and running,” Golden Eagle President and Chief Executive Officer Terry Turner said Tuesday.
Baldock thanked the NDEP and Attorney General’s Office for their work, as well as many others.
“The patience of the creditors, many of whom have been very supportive of the company and its extended efforts to re-start operations, is greatly appreciated. In addition, Queenstake must recognize the loyalty and ongoing support of its workforce and members of the wider Elko community who have had an understandably anxious time over this period, but nevertheless, remained loyal to the company,” he said.
“Finally, the company must thank its very supportive shareholders and other stakeholders who have waited patiently for better times for the company, many of whom have also continued to invest and assist during this time to allow the company to continue in business while the issues were addressed,” Baldock said.
According to NDEP, the consent decree requires extensive operational monitoring of process and emissions controls, including monthly mercury testing to ensure the systems are operating as designed.
The decree also requires continued improvements of fluids management systems, implementation of environmental audits and compliance plans for air quality, and the addition of emissions controls on supporting process equipment.
Sanches said the Jerritt Canyon mill produced 5,128 ounces of gold in the short time the mill restarted last spring.
NDEP allowed the mill to restart in March under an order that required installation of the mercury controls by May 30 and came after the company installed a continuous emissions monitoring system, optimized roaster controls and completed the design for the new mercury controls, according to the agency.