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Mine to Pay Spain’s Farmers $6.5 Million

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<i> Reuters</i>

Boliden Ltd. said Wednesday that it will pay up to $6.5 million to compensate farmers for thousands of acres of rural land, including farms, orchards and pastures, poisoned by a toxic spill last month at the Canadian company’s zinc mine in southern Spain.

The compensation package, negotiated between Toronto-based Boliden and Spanish officials, covers damage caused after a mining reservoir ruptured April 25, discharging a torrent of toxic sludge into the Guadiamar River and surrounding land.

Spanish agriculture officials estimate that the spill has destroyed the crops, property and livelihood of 2,000 families.

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Boliden’s compensation offer was less than the $10 million previously demanded by Spanish farmers groups, which have offered higher estimates of the extent of contaminated land.

Boliden has already pledged to pay the full cost of the cleanup.

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