A class-action lawsuit brought forward by residents allegedly affected by the Malartic gold mine, owned and operated in a 50:50 joint venture by Agnico Eagle Mines (TSX, NYSE:AEM) and Yamana Gold (TSX:YRI) (NYSE:AUY), is going before the Quebec Superior Court today.
The residents living close to the large open pit mine, located 25 km west of Val d’Or in Quebec’s Abitibi region, want to be compensated for damages related to dust, noise and explosions they claim to have been exposed to for many years.
The suit, filed last year, was approved by the same court in May. The decision came on the heels of the Quebec government allowing the Malartic gold mine expansion, a project that will increase its life span by six years, until 2028.
At the time, the provincial government said the two companies involved in the Malartic mine worked with the local community to ensure the project was “well understood” and “in line with the strategic vision for mineral development.” It did, however, included nine new conditions, five of which related to climate management.
Ugo Lapointe, Program Coordinator for MiningWatch Canada, said an independent expert panel that reviewed the project last year recommended a “mediation process” to resolve the conflict.
It also suggested, he said, that the companies review their compensation and relocation protocol to specifically address the community members’ concerns, including the need to be able to relocate in a neighbouring community without incurring debts, costs, or losses in the process.
“Currently, the companies’ lawyers are doing everything they can to prolong and delay the process instead of moving ahead swiftly,” Lapointe told MINING.com.
But Canadian Malartic says that’s not true. “Contrary to Mr. Lapointe’s statement, Canadian Malartic’s counsel have been in Court not to ‘prolong and delay the process’ but rather to defend the right of Canadian Malartic’s residents to continue benefiting from the compensation program, as against Plaintiff/Class representative’s efforts to prevent the 83% of class members who have chosen to benefit from the Guide and receive their compensation, to continue doing so,” it said in an emailed statement.
The mine’s representative added that, since September 2016, Canadian Malartic has a voluntary compensation process in place. The “Good Neighbour Guide” outlines the terms and conditions under which residents could be compensated for annoyances caused by dust, vibrations, overpressure and noise, she said.
Reports show a $40,000 to $70,000 price difference between houses located close to the mine site and similar properties in neighbouring communities.
But the Quebec Superior Court excluded the possibility of landowners claiming real-estate losses in the class-action suit. Those claims must be done on an individual basis, the judge ruled.
A report published last year by Quebec’s environmental regulation agency (BAPE) concluded that the province’s environmental laws are inadequate to regulate the operation of an open pit mine such as that of Canadian Malartic. Likewise, the BAPE believes that government did not use “the coercive means” at its disposal to enforce current regulations.
According to that document, since 2011, the companies operating Malartic have been unable to demonstrate the mine can be run in an urban environment in accordance with the legal requirements imposed on it.
The report found the mine frequently exceeded the standards and criteria for noise, dust and vibrations, which resulted in recurring notices of noncompliance issued.
The class action covers an area that includes about 350 homes and apartment buildings (about 1,200 people), all located within 800 metres of the pit. The closest homes are 100 metres away from the operation, which runs round the clock, 365 days a year.
The Malartic mine has been operating since 2011. Agnico Eagle Mines and Yamana Gold Inc. acquired it in 2014, in a $3.9-billion takeover of Osisko Mining Corp.
5 Comments
LAMB
Big companies with deep pockets can have lawyers fight this until it dies – strange how companies like this do not value the support of the Community that their Mine is in. Better to ‘bit-the-bullet’ and relocate these poor people living so close to an open pit. WHAT WERE THE COMPANY MANAGERS THINKING OF WHEN THEY MADE THIS DECISION???
Andy Whitten
What isn’t said is how many participants there are in the class action suit (3 or 300?). Nor the seriousness and significance of the violations (dust and noise within the mine boundary, or the city?).
Sleazy class-action lawyers can also make a lawsuit out of next to nothing. Especially when being egged-on by NGO’s that always find a reason to hate a mine.
This article is mildly prejudicial as it shares nothing from the position of the mine but spends plenty of time expounding on the position of an NGO. Not exactly comprehensive or balanced reporting.
MINING.com Editors
It does say — 200 people, but MiningWatch claims most of the 1,200 residents are affected.
Andy Whitten
1200 people in the area, not in the suit. But after looking for your citiation I notice the citing of the mining watch press release that mining watch says “over 200 people.” That is a pretty big gap, so which is it?
stewart jackson
This town is a complete relocation of the old townsite which is now the open pit.
Were not all the people who relocated here well aware that the new town was being sited adjacent the proposed open pit ?? I would presume that they agreed to their new home in the new location at the time of the move. Is this not correct??