Opting not to build a $260-million pipeline that would direct wastewater from an Alaskan mine into the Arctic Ocean, Teck Resources (TSX:TCK) is paying the U.S. government an $8-million penalty.
The Vancouver-based mining company agreed to finance a study — a stipulation under a 2008 settlement agreement — that would examine the feasibility of building a pipeline transporting effluent from the Red Creek mine in northern Alaska to the Chukchi Sea.
Teck announced June 5 it would exercise its option not build the 84-kilometre pipeline and instead pay a much smaller fine.
Effluent from the Red Dog mine — the world’s largest zinc mine — will continue being treated at an on-site facility and released into Red Dog Creek.
The $1.7-million study determined a pipeline would be cost prohibitive and vulnerable to breakage to due to seasonal freezing and thawing.
Furthermore, the study claimed there would be no demonstrable environmental benefits from building a pipeline either above-ground or underground.
In a statement, Red Dog mine operations manager Henri Letient said Red Dog Creek “is demonstrably healthier than it was before mining commenced.”
The company also said aquatic life has improved downstream from the mine since the on-site facility began treating the wastewater.
In April, Teck announced it was delaying plans to restart its Quinette coal mine in Tumbler Ridge and reduce its global workforce 5% through attrition, hiring freezes and layoffs.
