Breaking News from The Globe and Mail

Cambior faces $2-billion (U.S.) suit

Friday, May 23, 2003

Georgetown, Guyana — Residents of western Guyana are suing for $2-billion (U.S.) in damages from a Canadian gold mining company responsible for a massive spill of cyanide-tainted waste into a major river in 1995

The suit, filed this week in Guyana's High Court on behalf of 23,000 people living along the Essequibo River, charges Omai Gold Mines Ltd. with negligence in allowing a dam to collapse and pour 764 million gallons (2.9 million cubic metres) of cyanide-tainted slurry into the river.

It also says the Essequibo, the main waterway of this South American country, is still tainted and its fish contaminated, though residents have no scientific evidence, prosecution lawyer Peter Britton said Friday.

The company, majority-owned by Montreal-based Cambior Inc., has said it completed its cleanup and continues to monitor waste levels in the river.

Omai spokesman Seeta Mohamed said Friday the mine had yet to be served with a writ but would defend itself if the case goes to court.

She suggested the court may dismiss it outright as it has an earlier claim.

Lawyers for the plaintiffs were optimistic: "The previous case filed three years ago was dismissed because of procedural error, but we've corrected it," Britton said.

Aside from the $2-billion in damages, residents want the company ordered to stop dumping treated waste in the river. The company says the waste is harmless.

The August 1995 spill lasted five days until engineers could bring it under control. Huge numbers of fish and other marine life were killed and drinking water had to be trucked in for the hundreds of villages and wildlife dependent on the Essequibo and its tributaries.

Authorities shut down mining operations and spent several weeks cleaning the river and mining area, which was designated a disaster zone.

Omai Gold produces about 70 per cent of Guyana's annual average gold production of about 440,000 troy ounces, employs more than 700 workers and accounts for about 20 per cent of gross domestic product.

The lawsuit also names as defendants several entities associated with Cambior and Omai, including the Guyana government, Golden Star Resources of Denver, Colorado, JP Morgan, Royal Bank of Canada, National Bank of Canada and Citibank of Canada.