LoVE Search 2

Custom Search

Love Search

Custom Search

Bankruptcy Doesn’t Excuse Mining Co. from Cleanup Duty

Bankruptcy Doesn’t Excuse Mining Co. from Cleanup Duty
Bankruptcy Doesn’t Excuse Mining Co. from Cleanup Duty

Thursday, April 23rd, 2009

The mining company Asarco LLC is not absolved of its obligation to clean up leaks from its Leadville, Colorado mine simply because the company went bankrupt, according to the U.S. Department of Justice (DoJ). Asarco filed for bankruptcy in 2005 as it was dealing with several complex environmental issues regarding its Black Cloud mine, including hundreds of asbestos lawsuits citing asbestos poisoning.

Massive Release of Toxins Is Imminent

Documents from the DoJ released in federal court on Wednesday describe the dangers from the Black Cloud mine:
"There are ongoing releases and there is a threatening massive release from the [mine’s] Yak Tunnel." Asarco maintains that it is not responsible for leaks from the mine because the mine is owned by a joint venture that was created in 1956. The reorganization of the company has hampered efforts to resolve environmental issues.

Duty to Prevent an Environmental Disaster

The DoJ says that Asarco cannot use bankruptcy or the joint-venture structure to escape its duty to prevent an environmental disaster at the mine, where lead and zinc were mined for decades. Asarco, based in Phoenix, Arizona, has been hit with claims of asbestos poisoning that demand about $2.6 billion in damages, and other creditors are seeking a total of about $13.5 billion from the company.

Settlement Talks Ongoing

Settlement talks are being held among Asarco, the state of Colorado, and federal officials. Asarco’s vice president for environmental affairs, Tom Aldrich, said that Colorado’s claim for cleanup costs at the Black Cloud mine has increased from $160 million to $200 million since the original claim filed after Asarco started its bankruptcy action.


Has asbestos poisoning impacted your life? Contact a qualified asbestos attorney to discuss your legal rights.
« W.R. Grace Goes to Trial for Libby Asbestos Exposure- Tremolite
Predicting Mesothelioma Survival Times with Gene Analysis »

Bankruptcy Doesn’t Excuse Mining Co. from Cleanup Duty

You Can help More People... Submit here....!!!!

Enter your email address:

Delivered by FeedBurner