The Filipino government has imposed a fine on a unit of Lafayette Mining Ltd, Australia, for two cyanide spills that contaminated the water system on Rapu-Rapu island. An initial fine of us $198,000 was levied, together with an additional fine of us $3,790 per day, until Lafayette Philippines Inc complies with the country's environmental standards.
Lafayette's operations have been suspended since October 31, 2005, when the second spill occurred. The first spill occurred on October 11, 2005. Lafayette claims the leaks were accidents caused by heavy rain. Cyanide, a toxic chemical, is used to segregate gold from ore.
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