Current and future liabilities stemming from a catastrophic oil spill in the Gulf of Mexico have sent BP PLC (NYSE: BP, Stock Forum) shares tumbling in recent weeks, prompting speculation that the company will be forced to at least cut its second-quarter dividend to appease the U.S. government.
But BP is not the only company that has had to deal with resource-related environmental issues. A handful of Canadian mining companies are also grappling with environmental challenges associated with their operations. Here are some of the key names on the list.
Greystar Resources Ltd. (TSX: T.GSL, Stock Forum) shareholders were left in limbo last month when the Colombian Ministry of the Environment Housing and Territorial Development (MAVDT) informed the company that it would have to re-file its environment impact assessment in order to comply with new mining regulations in that country.
The government later reversed its decision after Greystar launched an appeal, but not before the company’s stock price fell to $3.11 from over $6. The stock price has since recovered to trade Monday at $5.19.
Goldcorp. Inc. (TSX: T.G, Stock Forum) shareholders were hit with setback recently when the Inter-American Commission on Human Rights ordered the company to shut its Marlin mine in Guatemala to allow for an investigation into alleged human rights abuses and environmental problems.
Although Goldcorp says these allegations are without merit, the May 20 ruling raises questions about the future of an operation that accounts for 11% of Goldcorp.’s annual gold production. The commission is part of the Washington-based Organization of American States and considers its decisions to be binding on member governments.
Citing concerns about contamination caused by the Bajo La Alumbrera mine, residents of Catamarca province in northwest Argentina are calling for an end to mining in their region, according to MiningWatch Canada, an Ottawa-based non-governmental organization.
It says residents are also worried about the likely impact of Yamana Gold Inc.’s (TSX: T.YRI, Stock Forum) Agua Rica project, which is expected to be much larger than Bajo La Alumbrera.
Agua Rica is a copper-gold-molybdenum deposit, located in an area that was previously designated as a “nature sanctuary,’’ according to a MiningWatch report.
Taseko Mines Ltd. (TSX: T.TKO, Stock Forum) is attempting to develop a controversial gold-copper mine in British Columbia which would require it to drain a trout-bearing lake and use it for dumping waste rock and mine tailings. The proposed Prosperity mine is subject to a federal assessment, which takes into account the views expressed at public hearings. The federal decision has not yet been announced.
Northgate Minerals Corp. (TSX: T.NGX, Stock Forum) was prevented three years ago from proceeding with an expansion of its Kemess North copper-gold project after a federal-provincial review panel decided that development would not be in the public interest.
A key part of the plan involved a proposal to dump tailings and waste rock into a nearby lake.