Government commits $10 million to reclamation of Hope Brook Site

Mines and Energy Minister Lloyd Matthews said today that $10 million for the reclamation of the former Hope Brook gold mine site demonstrates government�s ongoing commitment to the clean-up of abandoned mine sites in the province.

"The clean-up of the Hope Brook site has always been an important priority of government," said Minister Matthews. "This funding will now permit the site decommissioning and rehabilitation to commence in a timely manner."

The minister noted that 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.

"I am pleased to see this project move forward, ensuring that our natural environment is restored," said Minister Matthews. "We must continue to work with mining companies to ensure that the environment remains a top priority."

Denison/Innova Quest has been acting as the project manager of the site since September 1, 2001. Decommissioning and rehabilitation contracts have progressed through the tendering process and will be awarded in the near future.

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: Darrell Mercer, Communications, (709) 729-5777.

2002 03 21                              3:30 p.m.