I believe it was used to leach gold out of the ore or something like that. Basically, the corporations bailed out once the gold was gone and left the public on the hook for the massive cleanup. A few years before that, there was also labour dispute, which caused the deaths of several miners. Gold can cause a lot of grief.
http://www.cbc.ca/stories/2004/02/04/giant_cleanup040204"At the Giant Mine site, the concern is what to do with 237,000 tonnes of arsenic trioxide dust - a byproduct of more than 50 years of roasting and milling of arsenopyrite ore -which is stored underground.
"I can't think of another example anywhere in the world where there's so much arsenic dust stored at one location," says Bill Mitchell, manager of the Giant Mine Remediation Project. In mid-January, the public heard first-hand about management possibilities from the technical advisor firm SRK Consulting, during a public workshop in Yellowknife. An Independent Peer Review Panel, with nine of Canada's top scientists, risk assessment professionals, toxicologists and mine engineers, has examined the consultant's recommendations."
http://www.ainc-inac.gc.ca/pr/pub/pni/pni04_e.html"The Giant Mine opened in 1948 using roasting technology and continues to operate as the last of its kind in Canada. There is no proven clean-up technology or plan for the huge volumes of arsenic trioxide stored underground within a few hundred metres of Great Slave Lake and the entire Mackenzie River watershed.
Clean-up costs have been estimated at $70-900 million for the arsenic. The Department of Indian Affairs and Northern Development holds a $400,000 security bond on behalf of the Canadian public for the clean-up. The Faro mine opened in 1969 and closed again in 1998. The federal government holds $14 million in security for the estimated clean-up now put at over $100 million. The mine is creating acid mine drainage which, if left untreated, could affect fragile northern aquatic ecosystems for hundreds of years."
http://www.miningwatch.org/emcbc/news/giant_faro.htm