Yukon Zinc Behind in Security Payments by $3 Million

CBC News reported that Yukon Zinc Corp., which just announced that it is placing its Wolverine mine on care and maintenance, is behind in payments for its security deposit by over $3 million. The deposit is money held by the government for eventual site clean up.

As quoted in the market news:

The mine has shut down because of a cash shortfall and is laying off about 220 people. The company says the closure is temporary, but acknowledges the mine’s future is uncertain.

CBC News has learned the company is also in violation of its agreement to pay money into a security fund to ensure taxpayers aren’t left paying for the clean up when the mine closes for good.

Bob Holmes, the Yukon government’s director of mineral resources,agreed to a new payment schedule in 2013 when the mine first faced financial troubles, but Yukon Zinc has not met that schedule either. Holmes says it doesn’t affect the company’s liability.

Click here to read the full CBC News report.