Arcelormittal Canada Inc. & 7623704 Canada Inc. - conviction information for 2021-10-15
| Corporation name: | Arcelormittal Canada Inc. & 7623704 Canada Inc. |
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| Address: | 1330 Burlington Street East |
| City: | Hamilton |
| Province/territory: | Ontario |
| Postal code: | L8N 3J5 |
| Country: | Canada |
| Sector or industry: | 212 - Mining and quarrying (except oil and gas) |
| Location of offense: | Mont-Wright mining complex, Fermont, Quebec |
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| Case summary: |
On June 10, 2022, ArcelorMittal Canada Inc. and 7623704 Canada Inc. were fined a total of $15 million by the Court of Quebec, at the Montreal courthouse. On October 15, 2021, ArcelorMittal Canada Inc. was found guilty of 93 charges and 7623704 Canada Inc. was found guilty of five charges for violations of the Fisheries Act and the Metal Mining Effluent Regulations (MMER). ArcelorMittal Canada Inc. appealed this decision to the Quebec Court of Appeal. On December 14, 2023, the Quebec Court of Appeal upheld the trial court's decision. ArcelorMittal Canada Inc. then appealed this decision to the Supreme Court of Canada. On September 19, 2024, the Supreme Court of Canada dismissed the application for leave to appeal the Quebec Court of Appeal's decision.
The conviction stemmed from incidents at the Mont-Wright mining complex in Fermont, Quebec, from May 25, 2011, to May 14, 2013. The defendants, partners in the joint venture ArcelorMittal Mining Canada (AMEM, the Mine), operate the Mont-Wright Mining Complex, an iron mine located west of the town of Fermont. As such, they are subject to the Fisheries Act (FA) and the Metal Mining Effluent Regulations (MMER).
On March 6, 2013, the Environment and Climate Change Canada's (ECCC) Enforcement Branch opened an investigation into a November 2012 dike rupture at the Mont-Wright mining complex. The investigation also covered 33 (unauthorized) deposits out of the normal course of events of toxic substances made in water frequented by fish between May 25, 2011, and May 14, 2013, in violation of subsection 36(3) of the Fisheries Act. The waters into which the discharges occurred, namely Saint-Ange and Webb lakes and their tributaries, which flow into the Moisie River, which is a provincially designated aquatic reserve. It is also one of the largest Atlantic salmon rivers in North America. The criminal investigation resulted in the filing of charges on July 19, 2017.
The investigation also revealed that ArcelorMittal Canada Inc. had not declared all the results of its effluent monitoring tests, as required by the MMER. The firm concealed from the authorities a number of (unauthorized) deposits out of the normal course of events of toxic substances. As a result, ECCC had an inaccurate and altered overview of the situation. ArcelorMittal Canada Inc. was therefore found guilty of having made false and misleading statements to ECCC officers, in violation of subsection 63(1) of the Fisheries Act.
ArcelorMittal Canada Inc. and 7623704 Canada Inc. were also found guilty of failing to conduct the testing required during deposits out of the normal course of events. The firms thus violated paragraph 14(1)(b) and subsection 17(1) of the MMER. In addition, ArcelorMittal Canada Inc. was found guilty of failing to submit quarterly effluent monitoring reports within the prescribed timeframe, in violation of subsection 21(1) of the MMER.
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| Charges: |
A total of 176 charges were laid*, as follows:
Discharge of deleterious substances - Violations of subsection 36(3) of the Fisheries Act (FA);
Instantaneous discharges of harmful substances:
34 counts of unlawfully depositing or permitting the deposit or immersion of a deleterious substance of any type in water frequented by fish, or at any place under any conditions where the deleterious substance or any other deleterious substance that results from the deposit of the deleterious substance may enter such waters, contrary to subsection 36(3) of the Fisheries Act, R.S.C. (1985), c. F-14, thereby committing the indictable offence provided for under paragraph 40(2)(b) of the said Act.
Monthly discharge of harmful substances:
3 counts of unlawfully depositing or permitting the deposit of a deleterious substance in waters frequented by fish or in any other place under any conditions where the deleterious substance or any other deleterious substance that results from the deposit of the deleterious substance may enter such water, contrary to subsection 36(3) of the Fisheries Act, R.S.C. (1985), c. F-14, thereby committing the criminal offence set out in paragraph 40(2)(b) of the said Act.
False or misleading statements:
2 counts of having made a false or misleading statement, whether orally or in writing, to an inspector, a fishery officer, a fishery guardian, any authority designated by a fishery officer or a fishery guardian or any authority prescribed under paragraph 38(9)(a) or (b) who is carrying out duties or functions under this Act, in quarterly reports related to effluents at final discharge points HS‑1 and MS‑2 of the Mont-Wright mining complex, contrary to subsection 63(1) of the Fisheries Act, R.S.C. (1985), c. F‑14, thereby committing the criminal offence under paragraph 78(b) of the said Act.
Failure to promptly notify an inspector of a discharge:
26 counts of having failed, without delay, to notify an inspector, a fishery officer, a fishery guardian or any other person described in the regulations of a deposit of a deleterious substance into waters frequented by fish at the final discharge points HS-1 and MS-2 of the Mont-Wright mining complex, contrary to subsection 38(5) of the Fisheries Act, R.S.C., 1985, c. F-14, thereby committing an offence punishable on summary conviction under paragraph 40(3)(c) of the said Act.
Failure to provide a written report to an inspector within 45 days of a discharge:
26 counts of having failed to prepare and submit a written report to an inspector, a fishery officer, a fishery guardian or a person described in the regulations, as soon as possible in the circumstances, after a deposit of a deleterious substance at final discharge points HS‑1 and MS‑2 of the Mont‑Wright mining complex, contrary to subsection 38(7) of the Fisheries Act, R.S.C. 1985, c. F‑14, thereby committing an offence punishable on summary conviction pursuant to paragraph 40(3)(f) of the said Act.
Failure to conduct an acute lethality test during an irregular discharge:
29 counts of having failed, following an unauthorized deposit at final discharge points HS-1 or MS-2 of the Mont-Wright mining complex, to conduct without delay an acute lethality test in accordance with Reference Method EPS 1/RM/13 and using the procedure set out in section 6 of that document, on a sample collected at the place where the deposit occurred, contrary to paragraph 14(1)(b) of the Metal and Diamond Mining Effluent Regulations, SOR/2002-222, thereby committing the offence punishable on summary conviction under paragraph 40(3)(a) of the Fisheries Act, R.S.C. 1985, c. F-14.
Failure to conduct follow-up tests on Daphnia magna following an irregular discharge:
29 counts of having failed, during an unauthorized deposit at final discharge points HS-1 or MS-2 of the Mont-Wright mining complex, to conduct follow-up tests with bioassays on Daphnia magna in accordance with the procedures set out in sections 5 or 6 of Reference Method SPE 1/RM/14, at the same time as acute lethality tests pursuant to section 14, 15, or 16 of the Metal and Diamond Mining Effluent Regulations, SOR/2002-222, contrary to subsection 17(1) of said Regulations, thereby committing an offence punishable on summary conviction pursuant to paragraph 40(3)(a) of the Fisheries Act, R.S.C. 1985, c. F-14.
Failure to promptly notify an inspector of a discharge exceeding the permitted limits:
11 counts of having failed to notify an inspector without delay if the results of effluent monitoring tests at final discharge point HS-1 or MS-2 exceeded the maximum allowed concentration of suspended solids of 30 mg/L in an instantaneous sample, contrary to paragraph 24(1)(a) of the Metal and Diamond Mining Effluent Regulations (SOR/2002-222), thereby committing an offence punishable on summary conviction under paragraph 40(3)(a) of the Fisheries Act, R.S.C., 1985, c. F-14.
Failure to submit a report to the inspector within 30 days of an exceedance:
11 counts of having failed to submit to an inspector a written report of the results of effluent monitoring tests at final discharge point HS-1 or MS-2 within thirty days after completion of those tests, where those results exceeded the maximum allowable concentration of suspended solids of 30 mg/L in an instantaneous sample, contrary to subsection 24(2) of the Metal and Diamond Mining Effluent Regulations (SOR/2002-222), thereby committing an offence punishable on summary conviction under paragraph 40(3)(a) of the Fisheries Act, R.S.C., 1985, c. F-14.
Failure to submit a quarterly report on effluent monitoring to the licensing officer:
5 counts of having failed to submit to the authorization officer a written report of effluent monitoring results at final discharge point HS-1 or MS-2 within forty-five days after the end of each calendar quarter for any tests or monitoring conducted during that quarter, contrary to subsection 21(1) of the Metal and Diamond Mining Effluent Regulations (SOR/2002-222), thereby committing an offence punishable on summary conviction under paragraph 40(3)(a) of the Fisheries Act, R.S.C., 1985, c. F-14.
* Some charges were withdrawn before the trial.
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| Enforcement notification: | ArcelorMittal Canada Inc. and 7623704 Canada Inc., partners in a mining company that operates Mont-Wright mining complex, fined a total of $15 million for violating the Fisheries Act |
| Result: | Guilty (Court Decision) |
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| Date of conviction: | 2021-10-15 |
| Court level: | Provincial and Territorial Court |
| Nature of offense(s): |
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| Additional details about the nature of the offense: |
ArcelorMittal Canada Inc. was found guilty of various offences as follows:
As for the accused 7263704 Canada Inc., it was found guilty of the following offences:
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| Act | Regulations | Section(s) |
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| Pollution Prevention provisions (subsection 36(3)) of the Fisheries Act | Metal Mining Effluent Regulations |
| Date of sentencing: |
2021-06-01 |
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| Location of sentencing: | Québec |
| Sentence(s): |
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| Amount of fine(s): | $15,000,000 |
| Sentencing details: |
On June 10, 2021, before the Court of Quebec, Montreal, Quebec, the companies ArcelorMittal Canada Inc. and 7623704 Canada Inc. received a sentence detailed as follows: ArcelorMittal Canada Inc. was ordered to pay the following fines: 7623704 Canada Inc. was ordered to pay the following fines: Grand total: $15,000,000 The amount of the fines was paid in full to the Government of Canada’s Environmental Damages Fund pursuant to subsection 40(6) of the FA. |