Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A breach at Imperial Metals’ (TSX:III) Mount Polley Mine tailings pond in Canada’s British Columbia may have been avoided had the company listened to concerns raised by engineers that designed the containment system, Knight Piésold Consulting said.
In a statement posted Friday, the Vancouver-based company claims its professionals had warned mine owners in February 2011 that the storage pond was “getting large.”
“The original engineering done by Knight Piésold Ltd. accommodated a significantly lower water volume than the tailings storage facility reportedly held at the time of the breach,” it said.
The firm, which also posted the 2011 letter to Imperial Metals, states that it highlighted at the time how important it was for them to monitor and operate properly such tailings “to prevent problems in the future.”
Gerald MacBurney, a former foreman who worked on the tailings pond, told CBC News TV last week he had warned of a disaster in the making for two years. According to MacBurney, management kept building the dam higher and disregarded his requirements to shore up the dam with enough rock to make it safe.
Images from Cariboo Regional District’s YouTube Channel.
6 Comments
Ohboy
Gives mining a bad name, again.
jrtserrano1000 .
kp washing their hands on their design. Should have stopped it at all costs as they say they had known the problem before it occured
dan
Actually that letter is gold for KP – it is issued in Jan 2011 and formally announces that they are not involved anymore with the monitoring of the dam and offers to handover everything they have on the dam to whoever the mine decides to appoint. The letter does not show that there was any problem at the time.
Itabirite
The finger pointing begins! If this report is correct, it is not surprising. Much tends to be invested in tailing dam design, but operations often get shorted. Too many operators are only concerned about production and give little attention to waste steams.
LAMB
There is a lot of finger-pointing here by all concerned BUT, it boils down to a reluctance by The Company to spend money on the dam and a Government Agency looking the other way. The initial Budget should have carried a reserve fund just for the tailing dam, i.e. for engineering and dam construction.
All too often, the guys managing the Operations are pressured by The Board of Directors and Investors to omit such costs and to just keep on running – then when the “xyz” hits the fan, they blame the Mine General Manager, make him a scapegoat.
Quarrydog
So much for all our efforts to engage and educate the community. But hey, in 25 years they will have forgotten all about it.
I’ll bet Imperial Metals wishes they had invested in a paste thickener or filter presses…looks like a much cheaper solution at this point.
I wonder if the little forman that reported the potential disaster was told that he had a personal problem…