http://www.news.com.au/common/story_page/0,2294,301911%255E1702,00.html

Miner faces fine over 'catastrophic' contamination
 From AAP
09feb00

10.30am (AEDT) AN Australian mining company could face international legal 
action for compensation following claims of "catastrophic" poisoning of 
rivers in Hungary by a joint venture gold mine in neighbouring Romania.

The Baia Mare gold tailings project, 50 per cent owned by Perth-based 
Esmeralda Exploration, is being blamed for spilling cyanide into rivers 
flowing into Hungary, killing fish and poisoning drinking water to around 
2.5 million people.

"The cyanide pollution that originated in Romania has caused an extremely 
serious environmental catastrophe in the Hungarian section of the Tisza 
river," said Hungarian foreign ministry deputy state secretary, Gabor Bagi.

Hungary banned fishing and all contact with water from the Somes and Tisza 
rivers last week after a leak from the Baia Mare mine, of which Romanian 
state-owned companies own the other half.

"Hungary's Foreign Ministry ... will make all the possible diplomatic and 
legal steps to enforce Hungarian compensation demands," ministry spokesman 
Gabor Horvath said journalists in Budapest.

Bagi conveyed this message to Romania's ambassador to Budapest, Petru 
Cordos, he said.

The poison killed all animal life in the Hungarian section of the Somes 
river and killed tonnes of fish when it contaminated Hungary's second 
largest river, the Tisza, water protection authorities said.

"Imagine a carpet over the river surface which is made up of the dead 
bodies of fish," Mr Horvath told ABC radio.

"Some of them which are rare and unique to that part of this waterway are 
forever exterminated."

He said the rivers provided drinking water to about 2.5 million people in 
nearby cities, towns and villages.

"This is the first most serious environment catastrophe in the 21st century 
and we will use international public law as well as international private 
law to seek and claim restitution for whatever damage has been done to my 
beautiful country," he said.

Meanwhile, Hungarian officials said a second cyanide leak into the Somes 
river, a subsidiary of Hungary's second-largest, Tisza, had been confirmed 
to have occurred on Sunday, although it was not as large as last week's.

"The amount and cyanide contents of the residue let in the Somes on Sunday 
was much smaller than last week," environment ministry department head Pal 
Fehervari told a news conference.

The poisons continued to flow downstream, although it was being 
progressively diluted. By today it had reached the central town of Szolnok, 
authorities said.

Emergency services continued to block the Tisza with barges at the northern 
village of Tokaj to remove the dead fish from the water, they said.

The Tisza flows into the Danube in Yugoslavia.

Experts said the technique used in the Romanian mine, using a cyanide 
solution to dilute the ore, had been banned in the European Union.

After years of negotiations and delays forced by bad weather, Esmeralda 
began construction work on the $US28 million ($44 million) Baia Mare gold 
tailings treatment project in northern Romania in October 1997.

The first gold was produced in April last year, according to Esmeralda's 
company website.

The plant is expected to produce 50,000 ounces of gold and 250,000 ounces 
of silver per annum.

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