The West Coast Regional Council is pursuing legal action against Elect Mining Ltd after it allegedly caused a slip to fall into Minehan Creek - the main source for the Ross water supply - last August.
The Ross water supply had to be chlorinated as a result, leading some residents to opt to buy or source their own water.
Elect Mining was alleged to have been working on unpermitted earthworks upgrading a 4WD track, Mount Greenland Road, as part of its mining exploration permit which led to the slip.
West Coast Regional Council consents and compliance manager Heather McKay said yesterday charges had been laid, although details were not available and she could not comment on whether reparation would be sought.
The Westland District Council is also seeking reparation from the company.
When the slip occurred Ross Community Society chairman Charlie McBeath said he hoped any associated costs would be met by the mining company and not by ratepayers.
Elect Mining operates Butlers alluvial goldmine near Ross and attempted to establish a goldmining operation at Canvastown, in Marlborough, last year.
NZ Petroleum and Minerals approved a permit to extract gold but an application for resource consent from the Marlborough District Council was declined by Auckland commissioner Graham Mackay.
The company estimated $120 million of gold was on the site. The application was for a floating plant alluvial mine.
Elect Mining is 90% American owned, with the two major shareholders Michael Lane and Matthew Lane based in Houston, Texas.
