Omai action unfounded - mine owners Guyana Chronicle August 21, 1999 THE owners of the Omai gold mine claim the court action filed against them here this week is unfounded and they will be contesting it vigorously. A statement issued in Montreal by the majority owner, Cambior Inc. confirmed that following a filing in August 1998, Omai Gold Mines Limited has been served with a `Representative Action' claiming compensation for damages as a result of a tailings dam failure at the Omai mine in August 1995. "Cambior and Omai view the action as unfounded", the statement released Thursday said. It noted that as a result of the cyanide waste spill at the mine in 1995, the Guyana Government established a Commission of Inquiry and related committees comprised of local and international experts to investigate the tailings dam failure. The statement said the commission tabled its report in January 1996 that included the following findings: "We have come to the conclusion that at no time was the contaminated water a serious threat to life. Nor was there any credible evidence that the spill in any way posed a hazard to the health of the [Omai] workers or the riverain residents." "Omai received permission from the Government of Guyana to resume commercial production at the Omai mine on February 4, 1996, and operations have continued uninterrupted and have achieved 100 per cent compliance with all the effluent standards set by the Guyanese Government; standards established for the protection of human health and aquatic life. "These standards also include all the environmental standards prevailing in the United States and Quebec", the statement said. Cambior said Omai's compliance is being monitored by the Environmental Protection Agency through independent sampling and assaying. According to the statement, Cambior was on March 26, 1997, served with a Motion for Authorisation seeking authorisation from the Superior Court of Quebec to institute a class action against Cambior with a view to claiming damages in the amount of Cdn$69,000,000. It said that in a judgment rendered on August 14, 1998, the Superior Court of Quebec granted Cambior's motion to dismiss the matter. No appeal was filed within the required time frame. In August 1998, within the three-year limitation period, a similar Representative Action was filed in Guyana. "Omai has now been served with the action claiming to represent some 23,000 individuals in Guyana and seeking US$100 million as compensation for damages", the statement said. "The action remains open to challenge in numerous respects, and Cambior and Omai have instructed their attorneys to contest it vigorously", it added. Cambior said it is the first gold mining company to receive ISO 14001 certification of its environmental management system. A © page from: Guyana: Land of Six Peoples