Ontario Graphite, Ltd - Order for financial assurance

Instrument type: Order for financial assurance

ERO number
019-1795
Ministry reference number
6528-BP4PYS
Notice type
Instrument
Act
Environmental Protection Act, R.S.O. 1990
Posted by
Ministry of the Environment, Conservation and Parks
Notice stage
Proposal Updated
Proposal posted
Comment period
May 26, 2020 - July 10, 2020 (45 days) Closed
Last updated

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Update Announcement

A decision for this proposal has been published as a Bulletin under ERO 019-2350 on October 8, 2020.

This consultation was open from:

May 26, 2020
to July 10, 2020

Proposal summary

The ministry intends to issue a Director's Order for the use of funds collected as a condition of an Environment Compliance Approval to Ontario Graphite, LTD., in Kearney, Ontario. The order will allow the ministry to make the funds available to the Crown to pay for the compliance with and performance of any action specified in the issued approval.

Location details

Site address

2142 Forestry Tower Road
Kearney, ON
P0A 1M0
Canada

Site location details

Kearney Graphite Mine

Site location map

The location pin reflects the approximate area where environmental activity is taking place.

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Proponent(s)

Ontario Graphite, Ltd
2142 Forestry Tower Road
P.O. Box No. 138
Kearney, ON
P0A 1M0
Canada

Why consultation isn't required

On April 1, 2020, the Ontario Government made a temporary regulation to respond to the COVID-19 outbreak. Ontario Regulation 115/20 exempts all proposals for policies, acts, regulations and instruments from posting requirements under the EBR until 30 days after the declared emergency is terminated.

Proposal details

The Kearney Graphite Mine originally operated from 1990 to 1994 as an open pit graphite mine and mill facility. The Environmental Compliance Approval issued for the site includes a Financial Assurance section which requires the owner to submit to the director sufficient funds to pay for the compliance with and performance of any action specified in the approval including the clean-up, monitoring and post closure care of the approved works.

On February 12, 2020, a secured creditor of Ontario Graphite, Ltd. (OGL) made an application to the Ontario Superior Court of Justice for protection under the Companies’ Creditors Arrangement Act (CCAA). On February 20, 2020, the Court extended the stay of proceedings to April 29, 2020, and approved a court-supervised sales process of OGL’s assets. The proceedings ended on April 29, 2020 as the creditor was unable to find a successful bidder for the assets.

On April 29, 2020, the CCAA proceedings were terminated and the ministry was advised that $45,000 remained in OGL’s bank account. OGL’s remaining funds are not sufficient for the compliance with, and performance of, action specified in the ECA including the clean-up, monitoring and post closure care of the works.

As a result, the director intends to issue an Order which will make available, to the Crown, the financial assurance for the performance of the environmental measures specified in the ECA including the clean-up, monitoring and post closure care of the works as defined in the ECA.

Supporting materials

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Comment

Commenting is now closed.

The comment period was from May 26, 2020
to July 10, 2020

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