Lupin Mines Incorporated - conviction information for 2018-08-20

Corporation details
Corporation name: Lupin Mines Incorporated
Address: #330-76 Richmond Street East
City: Toronto
Province/territory: Ontario
Postal code: M5A 2R3
Country: Canada
Sector or industry: 212 - Mining and quarrying (except oil and gas)
Case details
Location of offense: 65°45’N 111°15’W, Nunavut West, Nunavut
Case summary: Lupin Mines Incorporated ("LMI") was incorporated in April 2006 as a wholly owned subsidiary of Wolfenden Resources. In 2011, Elgin Mining Incorporated ("EMI") became the parent company of LMI. As of April 1, 2018, both EMI and LMI are valid and subsisting corporations.

The Lupin Mine is located at 65°45′N 111°15′W in Western Nunavut. It opened in 1982 and ceased production in 2005. It is a formerly active gold mine, which has been under Care and Maintenance Status since stopping production in 2005. This means mining and milling are not taking place at the site.

Following the Metal Mining Effluent Regulations, LMI conducted biological studies. They conducted and submitted the first two studies in 2006 and 2009. In 2011, they conducted and submitted a third study, investigated an effect on Arctic Grayling, a species of freshwater fish. Furthermore, it acknowledged that no connection was made between the observed effect and effluent discharge from the mine. Since no confirmed effect was indicated by the third study, LMI was to either continue investigative study or conduct a fourth study. In December 2012, LMI and Environment and Climate Change Canada (“ECCC”) agreed that a fourth study would be completed and submitted in June 2014.

In August 2013, LMI advised ECCC that due to financial restraints they would be unable to complete the fourth study on time and sought an extension for completion to June 2015. ECCC reviewed the legislation and practice and advised in response that there was no legislative authority to grant an extension of the study deadline under the Regulations.

In September 2013 Mandalay Resources (“Mandalay”) acquired EMI and as a consequence LMI and its attendant filing responsibilities.

In March 2014 the Type A Water License issued by the Nunavut Water Board for the Lupin Mine site expired. Without an active license, LMI believed they did not have authorization to use or dispose of water or waste water at the site, which would be required to complete the fourth study.  AANDC did give permission to LMI to access the site and complete other works at the site.

In the Summer of 2015 LMI did not yet have a license in place. The Nunavut Water Board recommended to the Minister of AANDC that a licence be issued in May 2015. The Minister, citing concern about the quantum of security recommended by the NWB, declined to issue the licence pending further discussion over the amount of security posted for the site. The licence was issued in October 2015.

An investigation was initiated in November 2015 for the failure of LMI to file the fourth study report on time. The investigation revealed the primary reason for not completing the EEM study was a lack of funds. LMI was charged with one count under the MMER’s in October 2016.

LMI under Mandalay Resources’ oversight and within its duty to comply with ECCC's requirements completed the fourth study during the period June to September 2016. The report was provided to ECCC on June 1, 2017 and receipt was confirmed on June 6, 2017, 36 months after the original deadline. The report confirmed the results of the third study that there were no noted environmental harms to fish or benthic populations from mine related effects.


LMI, on or about the 6th day of June 2014, at or near the Lupin Mine Site in the Territory of Nunavut failed to conduct environmental effects monitoring studies, in accordance with the requirements, and within the periods set out in Schedule 5, contrary to section 7(1) of the Metal Mining Effluent Regulations SOR/2002-222. thereby committing an offence under section 78 of the Fisheries Act, R.S.C. 1985, c. F-14.

Enforcement notification: Gold mine company operating in Nunavut fined $100,000 for Fisheries Act violation
Result: Guilty Plea
Date of conviction: 2018-08-20
Court level: Provincial and Territorial Court
Nature of offense(s):
  • Other
Additional details about the nature of the offense: Failure to submit an environmental effects monitoring study in accordance with the requirements, and within the period of time set out in schedule 5
Legislative details
Act Regulations Section(s)
Pollution Prevention provisions (subsection 36(3)) of the Fisheries Act Metal Mining Effluent Regulations subsection 7(1)
Date of sentencing: 2018-08-20
Location of sentencing: Iqaluit, Nunavut
  • Penalty for the EDF
Amount of fine(s): $100,000
Sentencing details:
On 17 April 2018, before the Nunavut Territorial Court of Iqaluit, Nunavut Lupin Mines Incorporated pleaded guilty to one count for failure to submit an environmental effects monitoring study in accordance with the requirements, and within the period of time set out in schedule 5 of the Metal Mining Effluent Regulations set out in accordance with the Fisheries Act.

On 20 August 2018, Lupin Mines Incorporated was ordered by the Territorial Court to pay $100,000.00, of which $80,000.00 was directed to the Environmental Damages Fund and the other $20,000.00 were payable as fines.
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