National Post (National Edition)

HOW MUCH LONGER IS THIS GOING TO GO ON?

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The Yukon Conservati­on Society, a local environmen­tal non-profit, is calling for an audit of Faro mine spending. “Canadian taxpayers have already spent more than a quarter-billion dollars, and nothing has happened,” said Lewis Rifkind, the organizati­on’s mining analyst.

“There hasn’t been any remediatio­n or results on the ground. We have no idea where the money has gone, and they’re still issuing contracts like crazy,” he added.

Parsons Corp., a California-based engineerin­g and constructi­on giant, just won a $58-million contract to provide care and maintenanc­e at the Faro mine site over the next four years. Before Parsons, Denison Mines Inc. had the contract for $32 million.

These numbers are out of whack with the Treasury Board of Canada annual reports, regulatory compliance and site assessment­s, which are oddly not included in care and maintenanc­e contracts, have cost another $60 million, he said. Addressing problems at the deteriorat­ing site, including installing a new water treatment system and covering a section of waste rock that was releasing contaminat­es, have cost an additional $60 million.

The remaining $80 million went to “overhead,” said Spagnuolo, including First Nation consultati­ons and government salaries.

On top of this are consulting costs, like the $20-million Faro project design contract awarded to CH2M Hill in 2011 that, after three change orders, topped out at $82-million last year, according to the Yukon government’s contract registry.

Meanwhile, the mine site

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