Thursday, December 27, 2001

Spokane

Rock Creek mine plan approved
Critics to continue fighting permit; company needs ore prices to rise

Benjamin Shors
Staff writer

Coeur d'Alene _ Nearly 15 years after the Rock Creek mine was proposed, state and federal regulators approved a plan Wednesday to tap huge silver and copper deposits that lie beneath a wilderness area in northwest Montana.

The decision, announced jointly by the Kootenai National Forest and the Montana Department of Environmental Quality, follows years of debate on the impact the 482-acre mine would have on grizzly bears, water quality and the surrounding wilderness.

The permit all
ows Sterling Mining Co. of Spokane to construct the largest mine of its kind in North America, extracting 10,000 tons of copper and silver ore daily and employing 350 people.

Opponents immediately vowed to continue the fight, both through administrative appeals and in state District Court.

The mine has prompted protests from nearby Noxon, Mont., to Sandpoint, where residents fear that mine tailings stored on the Clark Fork River will flow downstream into Lake Pend Oreille. Supporters say the mine could boost a struggling economy in Sanders County.

Jan Sensibaugh, director of the Montana DEQ, said the agencies have conducted a thorough environmental analysis of the mine, and that state law requires the permit be issued if the mine meets environmental regulations.

"If the project can meet legislative laws and rules, we need to permit the mine," Sensibaugh said. "The agency can't just decide that we can't go forward with the project just because the public doesn't want it."

Mary Mitchell, executive director of the Rock Creek Alliance in Sandpoint, said the mine will release up to 3 million gallons of wastewater each day into the Clark Fork River, which feeds into Lake Pend Oreille.

"There's no question it's going to pollute Lake Pend Oreille," Mitchell said. "I think the agencies know that this is a horrible decision."

The proposal had been stalled for years by negative reviews from state and federal agencies, which found the mine could drain alpine lakes, contaminate mountain streams and jeopardize the area's small grizzly bear population.

Officials continued tinkering with the proposal, on Wednesday approving a revised version that closes roads to protect bear habitat, meets air and water quality standards, and provides a buffer between the mine and surrounding waterways.

The mine was originally proposed in 1987 by ASARCO, and was recently advanced by Sterling, which purchased the property in 1999.

The company, which currently employs eight people, must produce a $77 million reclamation bond, one of the highest ever required by the state of Montana. Another $4.2 million bond is required to protect grizzly bear habitat.

Frank Duval, president of Sterling, said copper and silver prices need to rise about 20 percent to develop the mine, and other investors may be brought in to the project.

"We would like very much to have a partner with deep pockets," Duval said.

Duval, who helped create Pegasus Gold Inc. in the 1970s, has since been involved with two mining ventures that ended in bankruptcy -- the Star Phoenix and Bunker Hill mines.

When asked if his small company will sell the property, Duval said, "Anything is for sale at the right price."

Before the mine can be opened, Sterling must complete an extensive evaluation of the site and pay the bond.

The company plans to begin its evaluation next summer, a process that could take two years as economic feasibility and environmental impacts are further explored.

If state and federal officials are satisfied with the results of that evaluation, the company can proceed, said Bob Castenada, supervisor of Kootenai National Forest near the Idaho-Montana border.

"The mining body is patented and owned by the company, and therefore they have the rights to mine that," Castenada said. "We put conditions on how they mine that."

The record of decision outlines those conditions, requiring that discharge meet the federal Clean Water Act and state water standards, and includes protections for struggling bull trout and grizzly bear populations.

Sterling must provide a conservation easement on 2,350 acres of privately owned grizzly bear habitat and deed it to the Forest Service. The company must also fund two new education and enforcement positions to protect the bears.

Despite the mitigations, Louisa Willcox, project manager for Sierra Club's grizzly bear team, said that the mine -- and a similar mine east of the Cabinet Mountains -- threaten to eliminate the population.

"This is an emergency room situation in terms of grizzly bears," said Willcox, who estimated that only a dozen bears remain in the area. "Most experts who have looked at this proposal say this is a nail in the coffin for this population."

Protecting grizzlies is just part of the cost to develop the mine, estimated at $150 million.

Sterling must also show that the mining operation will not drain a string of alpine lakes in the Cabinets, and that mine tunnels will be deep enough to prevent the soil from subsiding.

Duval estimates that Sterling -- and previously ASARCO -- spent more $20 million developing the project. He said the amount of environmental work needed does not necessarily prevent the project from going forward.

The company estimates that the ore deposit contains 200 million ounces of silver and more than a billion pounds of copper.

"These are huge ore bodies," Duval said.

The mine will be modeled after Sterling's copper-silver mine in Troy, Mont., which hasn't operated since 1993.

"There are people that said the mine contaminated water," Duval said. "I think it showed that the mine can be built to comply with Montana regulations."

Environmental leaders said the Troy mine paid only 30 percent of the predicted property taxes. Nearby waterways contain dissolved iron, manganese, copper and zinc.

"Troy hasn't been reclaimed, and Montana law has not been followed," said Cesar Hernandez of the Montana Wilderness Association. "Everybody says we have assurances. Take a look at how many assurances we have had across the state. The state of Montana has been found lacking."


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