Minister announces project manager for the Hope Brook site

Mines and Energy Minister Lloyd Matthews announced today that Denison Environmental Services/Innova Quest Inc., a joint venture partnership, has been chosen as the project manager to oversee the reclamation of the former Hope Brook Mine site in southwestern Newfoundland.

Six proposals were submitted to the department in November. Proposals were evaluated based upon sound technical analysis and overall cost.

"The new project manager has been involved in the reclamation of other mine sites in Canada and through this work has demonstrated the fundamentals required for an effective and timely clean-up of the Hope Brook site," said Mr. Matthews. "The project team members have the experience and expertise needed to ensure the site is decommissioned and rehabilitated in a professional and efficient manner."

Minister Matthews said that he is pleased to see this project move forward, ensuring the natural environment will be restored. "The project manager will assume responsibility for managing the clean-up of the site as of September 1, 2001."

The cost of the project manager is estimated to be approximately $2 million and will involve the management of the reclamation activities for a period of 30 months.

Minister Matthews noted, "New regulations established in the Mining Act (2000) now ensure that mining companies have financial assurances for site clean-up in place before operating a new mine in the province. This will guarantee that funds will be available for rehabilitation once a mine has shut down."

The Hope Brook Gold Mine operated from 1987 to 1997. In 1999, Royal Oak Mines Inc., the owner of the site, entered into receivership. Ownership of the site was subsequently transferred to the Government of Newfoundland and Labrador by the Ontario Superior Court on December 13, 1999.

Media contact: Tara Laing, Communications, (709) 729-4890

2001 08 20                                                   12:00 p.m.