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Web posted Sunday, June 3, 2007

Coeur's court loss may be felt by other mines
Pebble backers don't see any immediate effect

By Margaret Bauman
Alaska Journal of Commerce

Mining interests are reacting calmly to the 9th Circuit Court of Appeals decision prohibiting the Kensington gold mine from releasing tailings into a lake north of Juneau, while environmental interests are hailing the ruling as support of the Clean Water Act.

“We're just reviewing the options right now,” said Tony Ebersole, spokesman for Kensington Mine owner Coeur d'Alene Mines Corp. Meanwhile, Ebersole said May 25, the company is continuing to work at the mine, which has nearly 400 employees.

The May 22 decision from the federal appeals court prompted a news release from the company's headquarters in Coeur d'Alene, Idaho, saying those options include a possible appeal to the U.S. Supreme Court.

While environmentalists hailed the decision for its enforcement of federal clean water legislation, with possible ramifications for the proposed Pebble Mine in Southwest Alaska, Sean McGee, spokesman for Northern Dynasty Mines, didn't see any immediate connection. “Our project isn't designed (yet), so we are not sure what, if any, implications there might be,” he said.

“Our project is going to have to satisfy any and all relevant environmental standards and regulations that are in place at the time we apply for permits. I think the time-frame is still late 2008 and early 2009 to apply for permits, and it could be later than that,” he said.

McGee said the Canadian mining firm's current focus is on the geological exploration and environmental baseline study. Last year Northern Dynasty spent $56 million on the proposed mine, and $90 million more is budgeted for 2007, he said.

“There is a significant increase in our drilling program and environmental study program, but the real driver for the timeline is we really want to understand the full extent of the mineralization,” he said. “Until we determine that, we won't be in a position to develop the optimal mine plan.”

McGee said Alaskans' strong affinity to salmon resources are very legitimate concerns, but he was critical of efforts by some conservationists, whom he alleged are trying to polarize residents and create fear of the mine.

Mining opponents, including the Renewable Resources Coalition, don't see it that way.

“We are thrilled to see the court enforcing the federal Clean Water Act,” said Danny Consenstein, chief operating officer with the RRC. “Future jobs in this region and the sustainability of Alaska's salmon and the Bristol Bay fisheries depend on clean water.

The coalition, and a number of other opponents of Pebble, argue that there is great potential for such a huge mine to pollute the pristine tributaries that feed into the world's largest commercial sockeye salmon fishery, which contributes millions of dollars to the state economy. Sport angler and hunting interests in Southwest Alaska also depend on these waters, which also pump in millions of dollars to the state economy.

Consenstein said he believes the May 22 ruling will have an impact on decisions surrounding Pebble, Northern Dynasty and its partner, Rio Tinto, on proposed dumping of tailings from the mine into a nearby lake.

“Based on this court opinion, we believe dumping tailings in lakes will no longer be an option for the proposed Pebble project,” he said.

Margaret Bauman can be reached at margie.bauman@alaskajournal.com.

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