2015 Gold King Mine Spill: NM To Receive $11M

2015 Gold King Mine Spill: NM To Receive $11M

Introduction

A 2016 lawsuit filed by the state of New Mexico over the 2015 Gold King Mine spill has reached a settlement, and the state will receive $11 million from Silverton-based Sunnyside Gold Corp., owned by the international mining conglomerate Kinross Gold Corp.

The environmental disaster happened when Environmental Protection Agency (EPA) caused the release of about 3 million gallons of water laced with heavy metals into the Animas and San Juan rivers.

The accident was caused because Sunnyside Gold Corp. had plugged its own mine pool in the region and hence is probably responsible as some believe that the pool must have filled up and started to spill out of Gold King.

The state issued a press release noting that out of the settlement deal, $10 million is for the environmental response cost and loss of tax revenue, and $1 million is for damages caused to New Mexico’s natural resources.

The governor of New Mexico said, "we have won this battle, but we will continue to fight as we hold the U.S. EPA responsible for this terrible incident.”

The lawsuit against the EPA and its contractors where the state is reported to seeking $130 million is expected to go to trial in early 2022 and currently is moving through the federal court.

The Navajo Nation also reached a settlement for $10 million with the company and is seeking a claim for $162 million with the EPA. The director of reclamation operations for Sunnyside Gold said both settlements were “no-fault settlements.”

In August last year, the EPA agreed to fund $3 million in clean water projects and another $360 million for remediation projects at abandoned mine sites in the state of Utah after the state filed a similar lawsuit.