Yukon engineering firm takes over care and maintenance at abandoned Wolverine mine

A Yukon engineering firm has taken over care and maintenance activities at the defunct Wolverine mine.

The Yukon government awarded a contract to Boreal Engineering Limited in October. Boreal took over the responsibilities on Nov. 1, according to a recent written decision by Yukon Supreme Court Chief Justice Suzanne Duncan, marking a "significant step in this receivership and the life of the mine."

The government's bids and tenders website shows Boreal was the only company that submitted a bid for the contract, with a price tag of $12,911,300.

The Wolverine mine, located in southeast Yukon approximately halfway between Ross River and Watson Lake, most recently belonged to the Yukon Zinc Corporation. However, the company ran into financial troubles and never fully paid the approximately $25 million it owed in security costs, while also letting the site fall into disrepair.

The Yukon government has poured millions of dollars into environmental mitigation efforts at Wolverine since 2017, when an underground portion of the mine flooded and the contaminated water needed to be treated and discharged.

Next step: closure plan

The territorial government successfully petitioned for Yukon Zinc to be put into receivership in 2019, with receiver PricewaterhouseCoopers Inc. put in charge of managing the mine and other assets. Yukon Zinc declared bankruptcy later that year.

PricewaterhouseCooper tried to sell the mine in 2021 but was unable to find a suitable buyer.

According to Duncan's decision, PricewaterhouseCooper and the Yukon government prepared a plan in the spring and summer of this year for care and maintenance responsibilities to be transferred to a third-party government contractor.

Boreal's takeover means PricewaterhouseCooper, as receiver, will be taking a major step back from on-the-ground activities and responsibilities at Wolverine.

Duncan wrote that Boreal has a "close business relationship" with Ross River Dena Council's Dena Nezziddi Development Corporation the mine is located on the First Nation's traditional territory and that according to both Yukon government and PricewaterhouseCooper's lawyers, the transition of care and maintenance responsibilities to Boreal was "proceeding well."

The next step, Duncan wrote, is the development of a final closure plan for the site.