The First Nation of Nacho Nyäk Dun says it takes no position on a potential sale of the Eagle gold mine, but it is raising concerns about how the process has unfolded.
The Yukon government is weighing a possible sale of the shuttered site to Boroo Pte. Ltd., a Singapore-based mining firm. However, the First Nation said it does not support or oppose any specific bidder at this stage.
The group criticized the decision to grant Boroo a 90-day exclusivity period to negotiate with the territory. It argued the move reflects a focus on offloading the problem rather than fixing systemic issues.
The Eagle mine, previously operated by Victoria Gold Corp., shut down in 2024 after a heap leach pad failure. The incident released contaminants into nearby waterways and triggered a major environmental response.
PricewaterhouseCoopers has further acted as receiver since the collapse. It has overseen cleanup efforts and led the search for a buyer.
The Yukon government has also provided CAD$220 million to support remediation work at the site. Additionally, officials have said they want to recover some of those funds through a sale.
The First Nation said future decisions must involve full collaboration and consent from its citizens. Furthermore, it raised concerns about what it described as inadequate site management.
It also accused the territorial government of delaying broader mining reforms. The group continues legal action against both territorial and federal governments over project approvals on its land.
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Criteria will help protect workers
Yukon officials said any agreement will require First Nation support before moving forward. A government spokesperson said the exclusivity period allows time for Boroo and the First Nation to review the proposal.
The spokesperson said the sales process aims to identify a capable and well-resourced operator. However, it does not restrict bidders based on nationality, officials added.
The government also maintains that these criteria will help protect workers, the environment and local interests. The First Nation declined to provide further comment beyond its written statement.
Meanwhile, the Eagle mine incident adds to a growing list of recent environmental failures. Additionally, several companies worldwide have faced scrutiny for spills, collapses and contamination events over the past five years.
In 2023, Norilsk Nickel reported a major fuel spill near the Arctic city of Norilsk. The incident released thousands of tonnes of diesel into rivers and tundra. Furthermore, authorities imposed a record fine and ordered stronger environmental safeguards after contamination spread across fragile ecosystems.
In addition, First Quantum Minerals Ltd. (TSE: FM) (OTCMKTS: FQVLF) faced fallout after Panama ordered the shutdown of its Cobre Panamá mine in 2024. Protests and legal challenges followed concerns over environmental damage and contract terms. Consequently, the closure halted a major copper operation and intensified scrutiny of mining practices in sensitive regions.
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