Government of Ontario

11/08/2018 | Press release | Distributed by Public on 11/08/2018 15:41

Gold Mining Company Fined $100,000

Gold Mining Company Fined $100,000

Convicted - New Gold Inc.

Location - Town of Rainy River

Description of Offence - Failing to comply with the conditions of an approval under the Lakes and Rivers Improvement Act.

Date of Offence - March 21, 2016

Date of Conviction - July 11, 2018

Penalty Imposed - $100,000 fine

Background - Court heard that in August 2015, the Ministry of Natural Resources and Forestry provided New Gold with approval under the Lakes and Rivers Improvement Act to construct a network of dams and diversions, with a number of conditions, for the company's Rainy River project site.

On March 21, 2016, New Gold advised the ministry of an incident at its Teeple Dam. Ministry representatives attended the location and observed water overtopping the incomplete dam. This caused a portion of the dam to erode, and sediment from the dam entered the Pinewood River downstream.

The ministry's investigation determined that New Gold was aware of the incomplete status of the Teeple Dam prior to the incident. It also revealed that the company failed to meet the conditions of the approval by allowing water both to flow through the network before the design specifications had been met and to impound behind the incomplete Teeple Dam. Upon learning of the incident, New Gold took remedial action to address the issue in consultation with the ministry.