NovaGold to pay nearly $900,000 fine for pollution
By Yereth Rosen
ANCHORAGE, Alaska, May 12 (Reuters) - Canadian gold miner NovaGold Resources Inc (NG.TO) and its unit Alaska Gold Co have agreed to pay almost $1 million to settle water-pollution charges in Alaska, according to the U.S. government.
Under an agreement with the U.S. Justice Department and Environmental Protection Agency, filed in Anchorage on Tuesday, the mining company will pay $883,628 in civil penalties to settle pollution charges at its Rock Creek Mine near Nome, Alaska.
The charges concerned multiple violations from April 2007 to September 2008, when sediment-laden stormwater flowed into three area creeks during mine construction, federal officials said.
Rock Creek, which operated only from September through November last year, has had a troubled tenure.
NovaGold said at the time of the closing that the mine, which had been expected to produce 100,000 ounces of gold annually, had "experienced unanticipated mechanical problems" and that the company could not afford the upgrades needed to meet conditions of federal and state environmental permits.
NovaGold said last month it was considering seeking a partner to help re-open Rock Creek or alternatively a buyer to take over the property entirely. (Writing by Bill Rigby, Leslie Gevirtz)
