Wonkfest: Sunnyside Gold King Settlement, explained
Why has a mining company forked out millions for an accident in a mine it didn't own?
Last week’s $90 million settlement relating to the 2015 Gold King Mine Blowout that turned the Animas and San Juan Rivers TANG-orange for over 100 miles downstream did not bring an end to the legal saga that has dragged on for more than six years (lawsuits against the federal government are still pending). But when the agreement is finalized, Sunnyside Gold Corp—the owner of the nearby, now-shuttered Sunnyside Mine—will finally be free of the mess. Extricating themselves from any further liabilities has cost them about $67.6 million: $40.5 million to the feds; $6.1 million to the State of Colorado; $11 million to the State of New Mexico; and $10 million to the Navajo Nation, not to mention the tens of millions they’d already spent cleaning up a century’s worth of mining mess.
In agreeing to the payments, Sunnyside and its parent company, Canada-based global mining giant Kinross, have made it clear that they are not admitting wrongdoing or liability. They don’t own the Gold King Mine and never did. So why did the company fork out so much money?
The simple answer is that the bulkheads Sunnyside installed in the American Tunnel in the 1990s and early 2000s caused water to back up inside Bonita Peak and make its way into the Gold King Mine, resulting in the 3 million-gallon blowout. The truth is a bit more complicated.