Las Vegas NowNevada Regulators, Company Agree on Mine Reopening

Nevada Regulators, Company Agree on Mine Reopening

The owner of a Nevada gold mine cited for excessive mercury emissions has signed an agreement with state environmental regulators allowing it to resume operations, officials said Tuesday.

A consent decree filed Monday between the Nevada Division of Environmental Protection and Queenstake Resources requires the company to pay a $550,000 settlement. Queenstake is a subsidiary of Vancouver, British Columbia-based Yukon-Nevada Gold Corp.

Environmental regulators ordered Jerritt Canyon Mine near the Nevada-Idaho line closed on May 30 for failure to install equipment to control mercury air emissions. Yukon-Nevada blamed the failure on needed parts that didn't arrive in time.

The mercury emissions system was installed July 20, NDEP spokeswoman Jill Lufrano said.

"The major issues have been resolved," she said.

The decree, filed in Elko District Court, will become effective once it is approved by a judge, Lufrano said.

NDEP administrator Leo Drozdoff said agency staff will monitor activities at the mine -- located 50 miles north of Elko -- to ensure compliance with the agreement and environmental regulations.

The decree also requires improvements to fluid management systems, environmental audits and emission controls on process equipment.

State environmental regulators launched an investigation of the mine in December 2006 after Queenstake was cited for failing to properly maintain process equipment and air pollution control systems for mercury emissions. That led to nearly two years of on-again, off-again operations at the mine.

Mercury is a toxic metal that can damage the brain and nervous system.

Lufrano has said the new system will reduce mercury air emissions to 175 pounds per year from the 1,700 pounds reported in 2007.

(Copyright 2009 by The Associated Press. All Rights Reserved.)