The Yukon Workers Compensation Health and Safety Board has penalized the company operating Dawson City's new sewage treatment plant for its handling of a mould outbreak.

Investigators found the company did not clean up an extensive mould contamination safely, putting workers and visitors at risk.

Corix Water Systems has filed an appeal.

The inspection report from August noted lots of standing water from condensation on pipes and a lack of drainage. Samples confirmed several types of mould.

WCB spokesperson Richard Mostyn says the company was ordered to clean it up safely. Corix officials said they complied.

But last month, investigators found numerous violations of Occupational Health and Safety regulations.

Their report notes the worker doing the cleanup received no training, and a standard vacuum not intended for mould remediation was used.

The report says this increased the risk of spreading contamination through mould spores, resulting in potential exposure to workers and the public.

Mostyn says they're monitoring the situation closely. 

"We've investigated," he said. "We've found their processes lacking and we've issued a penalty."

Mostyn says he can't release details on the the penalty until after the appeal is heard.