Alaska gold company huge pollution fine

Nova Gold Resources, an Alaskan Gold Company has reached a settlement with the United States Environmental Protection Agency (EPA), as a result of its failure to follow proper environmental procedures when discharging water from its mine located near Nome, Alaska.

The companies violated the terms of their building permit to construct the Rock Creek Mine in Alaska when they discharged storm water into three nearby creeks, Rock Creek, Glacier Creek, and Lindblom Creek.

Additionally, the EPA is holding the companies responsible for failing to create and regulate a storm water pollution plan, and for not taking the step forward to implement such a plan when it became evident, after April 2007, that such a plan would be needed to meet the water quality standards of Alaska.

The settlement totals $885,000 and is a civil penalty that the company must pay before it can start to build the Rock Creek Mine, issued by the United States Justice Department in accordance with the EPA.

Rock Creek Mine was closed before the legal troubles began due to mechanical problems and because of an inability to afford equipment to meet the state and federal environmental guidelines.

It is unclear whether Nova Gold will attempt to open the mine next year or sell it, but the strategic development vice president of the company said it will attempt to reopen in 2010 at the cost of $10 to $20 million.