Mine Reclamation hit with claim that could be 'hundreds of millions'

By Caroline Salls

Pittsburgh, April 3 - Mine Reclamation, LLC had a claim filed in its Chapter 11 bankruptcy case by the County Sanitation District No. 2 of Los Angeles County that could amount to or exceed "hundreds of millions of dollars," according to an 8-K filed Tuesday by Kaiser Ventures LLC.

Kaiser Ventures, which holds an 84.247% ownership interest in Mine Reclamation, said the proof of claim did not specify an exact amount.

The district also claims that it will seek recovery of its damages from Kaiser Ventures independently of the bankruptcy proceeding, the company said in the 8-K.

Kaiser Ventures said it and Mine Reclamation will "vigorously defend the allegations asserted by the district."

Mine Reclamation filed for bankruptcy in October on the heels of a lawsuit challenging its Eagle Mountain landfill project's land exchange, which the company said sends the project back to the drawing board after a nearly 25-year permitting and legal battle.

According to an Oct. 31 news release, the Los Angeles County Sanitation District had the option of purchasing the landfill project as is or terminating its purchase and sale agreement with Mine Reclamation.

In response to the company's refusal to extend the purchase deadline beyond Oct. 31, the district threatened to sue to compel Mine Reclamation to further proceed with the permitting of the landfill at its own expense and risk.

Mine Reclamations said it had already spent nearly $85 million to permit and defend the landfill project.

Mine Reclamation is an Ontario, Calif.-based developer of the Eagle Mountain landfill project. The company filed for Chapter 11 bankruptcy on Oct. 30 under case number 11-43596.

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