MCEWEN MINE AT BLACK FOX PROJECT NEAR TIMMINS SUED BY FIRST NATION OVER BREACHES OF THE CONTRACT BETWEEN THEM INCLUDING FOR TAILINGS LEAKAGES CAUSING ENVIRONMENTAL AND HEALTH HARMS AND RISKS

APITIPI ANICINAPEK NATION, BC, Feb. 12, 2025 /CNW/ - Apitipi Anicinapek Nation (AAN, formerly Wahgoshig) is taking legal action against McEwen Mining Inc. for its violations of an Impact Benefit Agreement regarding the Black Fox Mine Project operating on AAN's territory. AAN filed the case Monday against McEwen alleging that McEwen has failed to comply with its legal obligations to AAN, both in terms of financial compensation and the environmental impact of the mine.

"Our lawsuit says that McEwen Mining Inc. is in violation of its commitments to Apitipi Anicinapek Nation by refusing to make annual compensation payments of shares to AAN, for over a decade, and by causing preventable environmental harm by allowing tailings leakages that harm fish and wildlife and pose risks to human and ecological health," says AAN Chief June Black. "The case says that the agreement between AAN and McEwen by which we consented to this project on the basis of the conditions and accommodation measures in it, is being breached by McEwen in these ways. They have known this for some time and refused or failed to fix these problems. They have driven us to have to go to court."

The Ontario Ministry of Environment, Conservation and Parks has determined that there are environmental violations. In January this year, a few months after AAN asked for an investigation, the Ministry decided that McEwen has contravened section 30(1) of the Ontario Water Resources Act and sections 14(1) and 93(1) of the Environmental Protection Act for historical and ongoing seepage of polluting material from the Black Fox Mill Tailings Management Facility that may impair water quality of Reid and North Driftwood Creeks and may cause adverse effects to downstream aquatic life, and has failed to take measures to address this in any timely way.

The Black Fox Mine project first started operations in 2011. At that time, Brigus Gold was the owner operator, Primero took over in 2014, and finally McEwen bought it in 2017. AAN consented to the mine being built and operated, which enabled the project to go ahead. This consent was not and is not open-ended; it is conditional on all the accommodation measures in the contract it has with the company, being met. These measures are to ensure that adverse effects of the mine on the rights, territory and culture of the First Nation are prevented, mitigated and compensated through stringent environmental standards, monitoring and oversight and through a variety of benefits that more than offset the harms.

These kinds of contracts are referred to as impact benefit agreements (IBAs) and there are likely no mines that get built in Canada today without them. They result from the constitutional rights of Indigenous Nations and the laws that require them to be accommodated for projects and developments on their homeland territories. Companies benefit from the financial and legal certainty of First Nation consent and the mutual cooperation of working together. "If a company takes all the benefit and fails to deliver its side of the bargain to the First Nation, this amounts to a betrayal and a setback for reconciliation, "says Lance Black, AAN Negotiator. "Too much has been stolen from us already, that to have this happen in this day and age is intolerable."

AAN's lawsuit alleges that McEwen was aware of the tailings leakages issues since at least 2021, and has been aware of the non-payment of share compensation since at least 2022. AAN has been trying for some time to get these serious issues addressed. McEwen has failed or refused to date. Then in late 2024, McEwen came up with a new position that it is not a party to the mine IBA with AAN, because AAN did not sign the 2017 agreement by which McEwen took over from Primero.

Says the Chief: "The IBA says directly in it that this kind of assignment can happen without the First Nation consent. This position by McEwen, has forced us to go to court to seek a court order that the parties are bound by the IBA so that this dispute can proceed. The IBA says disputes like this go to arbitration; McEwen refuses to participate in arbitration so it will take a court to order it to do so."

The court action was launched in Ontario Superior Court on February 10, 2025 and has court file number CV-25-00736742-0000.

SOURCE Apitipi Anicinapek Nation