Victoria Gold’s Eagle Mine, which closed in June after its gold-processing facility collapsed and spilled cyanide into the surrounding rivers, will cost about C$150 million ($111 million) to restore, according to preliminary estimates from Yukon Territory, a region of just 46,000 people that borders Alaska. But if history is any guide, the cost may turn out to be much higher, warn activists and industry watchdogs.
“Cost overruns are perfectly normal in this business, and all of it gets paid by the taxpayer,” said Jamie Kneen, head of Mining Watch Canada, an advocacy group. “I wouldn’t at all be surprised to see it cost much more than what’s currently being said, just because we have constantly seen that these problems cost several times the original estimate.”
Canadians are still on the hook for long-forgotten mining disasters in the Yukon, which has been a hub for gold miners since the Klondike Gold Rush more than a…
