CanZinco continues talks with DIAND

Officials with CanZinco Ltd. are continuing behind-closed-doors talks with officials from the Department of Indian and Northern Affairs over a security bond the company is supposed to post to guarantee a clean-up of the Nanisivik mine site.

Bill Heath, the manager of the Nanisivik mine, wouldn’t reveal the specific issues that the two sides are talking about, but he didn’t rule out the possibility that they’re talking about a reduction in the amount of money the company must post.

“I don’t think it’s prudent on our part if we share what’s included or not included. There’s a fairly broad discussion between the two parties with respect to financial security,” Heath said.

On Feb. 23, the executive director of the Nunavut Water Board said in a letter to CanZinco that, as a last resort, it would consider cancellation of the company’s water licence if CanZinco didn’t post a security bond of $17.6 million.

Last summer, the company objected to the idea of posting a bond at the same time as actual reclamation work is taking place.

“It’s difficult for any organization to be required to post financial security equal to the amount that’s believed to be the cost of reclamation, and at the same time actually be doing the reclamation,” Heath said.

Later on in the process, CanZinco objected to the $17.6 million estimated to cover the cost of cleaning up the site, saying its estimates come to about $9.2 million.