The management of the Gold Ridge mine on Guadalcanal in Solomon Islands has scotched a claim that a tailings dam could overflow and release poisonous waste into the adjacent community.
The new police minister Augustine Taneko recently toured the area and at the weekend said villagers near the dam are threatened by a possible overflow.
But the mine's manager Dick Bainbridge says there is no immediate threat and there is virtually no chance of it failing whatsoever.
The mine has not been operating for nearly three years, which means the company has not been able to have a controlled release from the dam.
But Mr Bainbridge says negotiations are continuing to try and re-open the mine which would allow the company to have a controlled release.