CEO of defunct northwest B.C. mining company found guilty of environmental violations - Action News
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British Columbia

CEO of defunct northwest B.C. mining company found guilty of environmental violations

The former CEO of a defunct U.S.-based mining company has been found guilty of 13 environmental violations in relation to waste discharges from a northwest B.C. mine in late 2014.

Judge finds Benjamin Mossman was 'actively or passively involved' in a spill at the Yellow Giant mine

An overhead view of a mine with a pool of water and associated equipment.
The Yellow Giant mine, overseen by Banks Island Gold Ltd., began commercial production in January 2015, and was ordered to cease operations in July 2015. In January 2016, the company filed for bankruptcy. (Submitted by Ian McAllister)

The former CEO of a defunct B.C.mining company has been found guilty of 13 environmental violations in relation to waste discharges from a northwest B.C. mine in late 2014.

On July 7, Judge David Patterson's decision found that Benjamin Mossman was "actively or passively involved" in the Yellow Giant mine exceeding permitted amounts of zinc and other substancesin the woods and wetlands surrounding it on multiple occasions.The Crown had initially charged Mossman with 23 violations.

Mossman was the former CEO of Banks Island Gold Ltd., which oversaw the Yellow Giant mine on Banks Island, 120 kilometres south of Prince Rupert, B.C., in the Hecate Strait, about 718 kilometres west of Prince George.

"The failure to have a foolproof system in place led to the exceedances," reads the written decision.

"To quote an old adage: 'The buck stops at the top.'"


The Yellow Giant mine closed in July 2015, shortly after operations began in January that year.

Mossman is now CEO ofCalifornia-based Rise Gold Corp.

Ministry had ordered mine closed

The GitxaaaFirst Nation had expressed concerns about the Yellow Giant mine's operations in 2015 before B.C.'s environment ministry performed an inspection on July 9 that year.

The next day, a pollution abatement order was issued, saying the mining company had released tailings and effluent into a creek, a lake, a pond, as well as forest and wetland on Banks Island.

On July 15, 2015, the Ministry of Energy and Mines ordered operations of the Yellow Giant mine to cease and desist until they were in compliance, and in January 2016, Banks Island Gold filed for bankruptcy.

A map shows an overhead view of Banks Island Gold, with yellow pins indicating mining waste.
A report from the Ministry of Environment shows areas where mining waste was detected on Banks Island during a July 2015 inspection. (B.C. Ministry of Environment)

In 2018, Mossman was convicted of two environmental violations, whileDirk Merkert, the mine's chief geologist and assistant mine manager, was acquitted on all counts.

Both menwereon trial again in the B.C. Provincial Court in 2022, after an appeals judgeordered a re-trial due to issues with evidence.

However the re-trial also featured issues with evidence, relating to a witness whom the judge found unreliable.Merkert was later acquitted of all counts by the court.

Applying to re-initiate a gold mine in California

Mossman was found guilty of being responsible for the effluent discharges that contravened safety standards and occurred on multiple days from August to December 2014, according to the July 7decision.

His violations, under the Fisheries Act and B.C. Environmental Management Act, could attract fines of hundreds of thousands of dollars or imprisonment. Court records show a court date in the case has been fixed for September.

In a statement to CBC News,Mossman's lawyer,Chilwin Chengsaid they applaud the court's acquittal of Merkertof all charges, and of Mossman of "all significant charges" related to accidental discharges at Banks Island.

Chengadded thatMossman is considering appealing the B.C. courtdecision.

CBC News has alsoreached out to theGitxaala First Nation andB.C. Prosecution Service for this story.

In August 2016, according to Mossman's LinkedIn, he became the CEO of Rise Gold Corp in Grass Valley, Calif.

That company has been applying to re-initiatea long-closed gold mine in Nevada County, Calif., with a decision expected from county supervisors in October.

With files from Andrew Kurjata and Tessa Vikander