Environmental Management
Northgate is committed to maintaining effective environmental management systems at each of its mining operations and exploration projects and conducts regular corporate audits of all of its properties.
Northgate regularly updates its estimate of future site reclamation and closure costs. The total provision at December 31, 2008 for site closure and reclamation is $46,269,000. The obligations per mine site are as follows:
At December 31, 2008, Northgate had security bonds totalling Cdn$18,409,000 (2007 – Cdn$17,409,000) posted in connection with its reclamation permit for the Kemess South mine and the Young-Davidson property. During 2002, Northgate and the Government of British Columbia amended the reclamation permit such that Northgate agreed to provide additional security installments of Cdn$1,000,000 on December 31 of each year from 2003 to 2008, with a final amount of Cdn$800,000 due on December 31, 2009 for the Kemess South mine. Northgate made a Cdn$1,000,000 installment payment at the end of 2008 in accordance with the reclamation permit.
At December 31, 2008, Northgate also had cash deposits of A$10,463,000 (2007 – nil) as security against performance guarantees relating to the future reclamation of Fosterville and Stawell.