Ajax mine could cost hundreds of millions in lawsuits, compensation: Mining watchdog

KAMLOOPS – A mining watchdog is warning that if the proposed Ajax Mine goes forward it could face $100 million in litigation or compensation costs.

MiningWatch Canada is suggesting KGHM Ajax could face $100 million to over $200 million in costs based on what is happening in Malartic, Que., according to a press release from the organization.

In Malartic, a class action suit was launched in August against the mine’s operator, while a compensation package program from the mining company started in September. If the same metrics are used for cases against the proposed Ajax Mine, MiningWatch Canda predicts they could face hundreds of millions of dollars in costs.

“MiningWatch bases its estimates on a 2.5 kilometre radius from the Ajax pit edge, which would include approximately 2,700 houses and 7,000 people living predominantly in the Aberdeen neighbour area,” the organization states in the press release.

The organization took the figures offered by the Malartic mining company and increased them for the increased size of the proposed Ajax Mine, environmental factors and population of the area.

MiningWatch Canada is also involved with a court case in B.C. to do with the Mount Polley Mine disaster. The organization, with the support of Kamloops groups opposed to the proposed Ajax mine and Coun. Denis Walsh, filed a private prosecution against the provincial government and Mount Polley Mine company.

Currently the proposed mine's environmental assessment application is temporarily suspended.

Find past stories on the Ajax mine here.

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