Mining

EPA sharply critical of Pebble draft; ‘preemptive veto’ revisted

Environmental Protection Agency headquarters leaders want their Pacific Northwest colleagues to again consider rescinding a proposed restriction for the Pebble mine. At the same time, those regional officials have several questions about the thoroughness of the ongoing environmental review of the project. EPA Region 10 Administrator Chris Hladick signed off on 174 pages of comments July 1 to U.S. Army Corps of Engineers Alaska officials overseeing the Pebble environmental impact statement, or EIS, and the closely related Clean Water Act wetlands fill permit. The public comment periods on the draft EIS and the Clean Water Act Section 404 permit application closed July 1. The 115 pages of EIS comments stress a desire from EPA Region 10 leaders to see significantly more analysis regarding possible damage to the environment and subsistence activities, among other things from the proposed mine and its expansive network of support infrastructure. “Given the substantial potential impacts and risks of the proposed project and weaknesses in the (draft EIS), the DEIS likely underestimates adverse impacts to groundwater and surface water flows, water quality, wetlands, fish resources, and air quality. Therefore, conclusions that the project will not violate applicable water quality and air quality standards should be further supported,” Hladick wrote in an accompanying letter to Corps of Engineers Project Manager Shane McCoy, who is in charge of the Pebble EIS. Hladick is a former commissioner of the Alaska Department of Commerce, Community and Economic Development under former Gov. Bill Walker and has served as manager to several local governments across Alaska, including the City of Dillingham, a commercial fishing hub in the Bristol Bay region. As currently proposed, the Pebble project would consist of a 608-acre open pit mine with a depth of nearly 2,000 feed accompanied by two large tailings storage facilities, water management ponds and other structures such as the ore mill, a worker camp and a large power plant. The megaproject would also require support infrastructure including 77 miles of new roads from the mine site to tidewater; an ice-breaking ferry across Iliamna Lake to haul metal concentrates; a deepwater port in Kamishak Bay on the west side of Cook Inlet; and a 188-mile cross-Inlet natural gas pipeline from the southern Kenai Peninsula to the mine site to provide feedstock gas for the power plant. The mine site would cumulatively disturb more than 8,000 acres, nearly half of which would be from the tailings storage facilities. The overall project would result in the destruction of approximately 3,500 acres of wetlands and 80 miles of streams, according to Pebble’s wetlands fill permit application. The EPA determined in 2014 — based on the conclusions of its Bristol Bay Watershed Assessment — that any project resulting in the loss of more than 1,100 acres of wetlands and water bodies in the area would be an unacceptable impact. How Pebble will, or can, sufficiently mitigate the wetlands losses is unclear at this point and is an issue Region 10 officials and many groups opposed to the mine have highlighted. EPA’s comments on the draft EIS insist the roughly 1,400-page EIS does not provide sufficient baseline data regarding the ecological functions of the potentially impacted wetlands and other water bodies; therefore, it is difficult to develop a requisite mitigation plan to offset the project’s impacts. Similar work needs to be done in regards to the prospective impacts on fish populations and their habitat, Region 10 officials concluded. “The EPA recommends significant improvements to: (fish) habitat characterization, assessment, quantification, and spatial referencing; assessment of linkages between the loss and/or degradation of habitat and impacts to fish species and life stages [i.e., incubating eggs, spawning fish, and rearing juveniles]; groundwater and surface water flow characterization at a scale that is more relevant to fish and fish habitat; and analysis of the potential population-level effects and effects on genetic diversity in the context of the Bristol Bay salmon portfolio,” the comment document states. The U.S. Army Corps of Engineers adjudicates wetlands fill permit applications under the Clean Water Act. The EPA has the final authority to veto a permit for projects it deems would result in unacceptable environmental damage. The Democrat-controlled U.S. House of Representatives passed a spending bill June 19 with language — known as the Huffman amendment — prohibiting the Army Corps of Engineers from spending money to finalize the Pebble EIS in the 2020 federal fiscal year. That legislation is now under consideration in the Senate. Region 10 officials also note that Pebble’s draft compensatory mitigation plan “includes only a conceptual discussion” of potential means to offset the project’s substantial impacts to wetlands and water bodies and does not mention specific mitigation work the company could employ. Pebble’s draft compensatory mitigation plan in the EIS notes that restoring wetlands near the project — a common practice for project proponents elsewhere in the U.S. — is impractical because the area is undeveloped. As a result, it states the company will likely focus on fish habitat restoration in adjacent watersheds such as the Kenai, Susitna and Matanuska “through culvert rehabilitation and other fish passage improvements that have the potential to benefit the greater Bristol Bay and Cook Inlet watershed areas.” Pebble Partnership spokesman Mike Heatwole said Pebble plans to develop more specific wetlands mitigation measures as the permitting process continues and the exact permit requirements become more clear, which he said is common for large projects such as the mine. According to the EPA, the draft EIS also lacks up-to-date information regarding subsistence activities in and near the project area. Much of the information it contains regarding subsistence harvests is from a 2004 Alaska Department of Fish and Game analysis and other studies up to 2008; Region 10 officials recommend more recent data be collected or more justification as to why the included subsistence data is sufficient be provided. The EPA also suggests the final EIS should include development alternatives for lining the tailings storage facilities to prevent contaminated water from percolating into the water table. Heatwole contends that lining the tailings storage facilities would be counter to the water management plan the company developed specifically in response to concerns about a potential tailings dam failure. Currently, Pebble plans to allow water to flow through the tailings facilities to prevent additional pressure buildup behind the dams. The water will be treated to meet state and federal water quality standards before it is released into the environment, according to Pebble. Many mine opponents stress the water at the mine site will need to be treated in perpetuity — something they argue can’t be guaranteed. Finally, the Region 10 officials contend the draft EIS should contain more information about the impacts of potential further development of the Pebble copper and gold deposit beyond what the company is currently applying for. They note Pebble’s parent company, Vancouver-based Northern Dynasty Minerals has discussed mining the larger, deeper eastern portion of the deposit as recently as 2017. For that and other reasons, the EIS should consider an expanded mining scenario in more detail or explain why evaluating the impacts of additional mining is unnecessary, according to the EPA. Pebble opponents also emphasize that the current smaller, 20-year mine plan is an attempt by the company to get a mine approved that will undoubtedly grow. According to Pebble’s Clean Water Act wetlands fill permit application, the 20-year plan would recover 6.7 billion pounds of copper, 353 million pounds of molybdenum and 10.7 million ounces of gold, while the overall Pebble deposit is estimated to contain more than 80 billion pounds of copper, 5.5 billion pounds of molybdenum and 107 million ounces of gold at higher average grades than the initial mining area. The latest Northern Dynasty investor presentation dated June 2019 also touts the Pebble deposit as containing precious metal resources equivalent to “1.8 percent of all the gold ever mined” in human history. It also contends the draft EIS is “robust and comprehensive” and is the result of more than $150 million worth of environmental baseline data collected over 10 years. The draft document contains “no substantive data gaps” and “no significant impacts” that cannot be sufficiently mitigated, according to Northern Dynasty. ‘Preemeptive veto’ revisted While EPA Region 10 officials were busy critiquing the draft Pebble EIS, the agency’s headquarters leaders in Washington, D.C. were asking them to also revisit lifting a proposed ban on building the mine. EPA General Counsel Matthew Leopold directed Hladick in a June 26 memo to reconsider the agency’s July 2014 preliminary determination that it should use its Clean Water Act authority to prohibit mine development in the Bristol Bay — commonly referred to as a “preemptive veto” of the mine. Leopold noted that the proposed veto determination is still pending five years after it was reached and has not been finalized either way; it must be lifted as an administrative requirement before the Corps of Engineers can approve Pebble’s 404 wetlands permit application. Former EPA Administrator Scott Pruitt in January 2018 unexpectedly chose to keep the Obama administration’s proposed determination in place, at the time citing “serious concerns” the agency had about the impacts of mining activity on the Bristol Bay watershed and the salmon it supports. Pebble sued the agency in 2014 alleging the EPA was biased in its proposed action after improperly colluding with anti-Pebble groups to reach its conclusion. A subsequent 2017 settlement company called for the agency to consider rescinding the proposed veto determination. The current situation has caused confusion about where the agency stands in regards to the project, according to Leopold. “To remove any confusion and uncertainty, Region 10 should lift the ‘suspension’ and withdraw the 2014 proposed determination or leave it in place,” Leopold wrote. According to Region 10 officials, Hladick, as regional administrator, is believed to be the decision-maker on the proposed determination, but that decision will be made in close coordination with headquarters officials. Current EPA Administrator Andrew Wheeler last year recused himself from all Pebble decisions because he had worked for a law firm that provided services to a client related to Pebble issues. Pruitt had indicated the EPA would hold additional public hearings on the determination if it were ever revisited; however, Leopold wrote that Region 10 should forgo more public input given the several rounds of public comments the EPA and Corps of Engineers have solicited on Pebble in recent years. Leopold also urged Hladick to invoke “elevation procedures” for Pebble under a 1992 EPA-Army Corps agreement that provides for additional scrutiny on projects that could cause “substantial and unacceptable impacts to aquatic resources of national importance.”

BLM lifts Alaska land withdrawals, opens 1.3 million acres

More than 1.3 million acres of federal land in Alaska are a big step closer to being “open for business.” Assistant Interior Department Secretary Joe Balash signed directives June 26 in Anchorage revoking decades-old federal public land orders, in the process making more than 1.3 million acres overseen by the Bureau of Land Management eligible for conveyance to the state, Alaska Native corporations and other uses. Balash said lifting the PLOs will allow the federal government to make good on longstanding commitments to the State of Alaska and Native corporations. “We know that these lands can be unlocked for development responsibly without sacrificing (public) access,” Balash said during a speech to the Resource Development Council for Alaska prior to acting on the orders. Balash also led the Department of Natural Resources under former Gov. Sean Parnell. The PLOs covered two areas: approximately 1.1 million acres of BLM land in eastern Interior Alaska, generally between Delta Junction, Tok and the Yukon River, as well as about 200,000 acres east of the Copper River delta and near the large Bering Glacier. Both areas are known for their mineral potential. The Interior Fortymile region is an area popular among Alaska placer miners and revoking the orders will open the areas to new federal mining claims. The actions take effect in 30 days, according to BLM Alaska officials. According to Balash there are 17 such withdrawals that impact the use of roughly 50 million acres in the state. Most of them were put in place shortly after Congress passed the 1972 Alaska Native Claims Settlement Act to allow for careful evaluation of land-use classifications at a time when the State of Alaska and Native corporations were selecting millions of acres to receive from the federal government. Balash said the PLOs were a prudent step when they were put in place but largely are no longer necessary. “This is the first of many (PLO revocations) that will take place over the next several months. We’re going to have a conveyor belt operating here,” he said. Gov. Michael J. Dunleavy, whose administration has stressed the motto that “Alaska is open for business” said Interior Department officials are serious about doing the right thing in lifting the withdrawals. The governor was headed to meet with President Donald Trump, who was making a Air Force One refueling stop at Joint Base Elmendorf-Richardson, and said he would thank the president for his administration’s push to open more land in the state to development. “It’s land that Alaska can use to hopefully create wealth,” Dunleavy said during a press briefing. He has also expressed a desire to transfer more state land to private ownership. The members of Alaska’s congressional delegation also commended the moves, citing the economic development opportunities and the need to fulfill land conveyance commitments to the state and Native corporations. The State of Alaska is entitled to 104.5 million acres from the federal government under the Alaska Statehood Act and to date has received title to approximately 99.3 million acres. In total, Alaska covers roughly 365 million acres and BLM manages about 70 million of those acres. Balash said the state has selections in the eastern Interior-Fortymile area that will become available, but has already “over-selected” acreage for conveyance beyond what it is entitled to, meaning state officials have to determine which selections they want to move forward with. Elwood Brehmer can be reached at [email protected]

GUEST COMMENTARY: America’s energy, tech and defense future needs mining

As the recent trade war with China has escalated, Beijing has implied that it may retaliate by withholding rare earth minerals. Such a strategic vulnerability — and America’s alarmingly high reliance on imported minerals and metals — is now in the spotlight for all the world to see. China’s rare earth threat underscores just how perilous U.S. mineral import reliance has become. While rare earths are currently the focus, America’s overall reliance on imports of these minerals is indicative of a far larger problem. According to the U.S. Geological Survey, the U.S. is now 100 percent import-reliant for 18 minerals and metals, and 50 percent or more reliant for another 30. Despite ever-growing demand for these minerals and metals in defense technologies — such as stealth and night vision technologies — or consumer goods and green energy technology, U.S. import reliance has doubled over the past 25 years. Notwithstanding the nation’s vast mineral reserves, mining investment in the U.S., and production of essential minerals, has steadily declined. The atrophying of the nation’s materials supply chain shouldn’t just be chalked up to the march of globalization and large-scale economic integration. It’s also the product of a decades-long adversarial approach to domestic mining that can be seen in federal land-withdrawals and a mine permitting process that now regularly stretches to 10 years or more. Modern, responsible, and well-regulated mining should be encouraged in the U.S., not pushed aside. To meet the material needs of our advanced tech, manufacturing, energy, and defense sectors, America will need almost exponential growth in the mining and refining of a vast array of minerals and metals, many of which can be produced here at home. While materials recycling should be a key part of meeting this demand, it’s hardly a cure-all. It’s past time for the U.S. to place strategic importance on mining and the greater materials supply chain. China is already years ahead in this industrial arms race, prioritizing mining as a cog of its industrial policy. For example, China is the top resource holder for 10 of the minerals and materials vital to wind, solar and battery technologies. A new report from the Commerce Department stresses the urgency of action. It warns that the U.S. has become “heavily dependent” on foreign sources for 31 of the 35 minerals recently designated as “critical” by the Department of the Interior. While the U.S. has fallen far behind, there are signs of hope. Bipartisan legislation introduced by Sen. Lisa Murkowski and Sen. Joe Manchin, D-W.V., The Minerals Security Act, is an important step forward in responding to China’s dominance and beginning to right our supply chain. The legislation would streamline a variety of mine permitting and regulatory processes currently sapping U.S. mining competitiveness. Their leadership in beginning to address this issue deserves strong, bipartisan backing. The technologies of tomorrow — whether they’re energy technologies or the defense applications that keep us safe — are more materials-intensive than what they’re replacing. It’s essential we build a supply chain to support them. Failing to do so won’t just be an economic missed opportunity. It would be a geopolitical blunder that undermines our global leadership. The time for decisive action to encourage domestic mining, and rebuild our industrial base, has arrived. Retired U.S. Army Brig. Gen. John Adams served more than 30 years in command and staff assignments as an Army aviator, military intelligence officer, and foreign area officer in Europe, Asia, the Middle East, and Africa. He is president of Guardian Six Consulting.

Alaska senators gain support on transboundary mining issues

Senators from the Western U.S. are joining the Alaska congressional delegation to press the issue of Canadian mining practices in transboundary watersheds . The bipartisan group of six senators — Mike Crapo, R-Idaho; Jim Risch, R-Idaho; Jon Tester, D-Mont.; Steve Daines, R-Mont.; Maria Cantwell, D-Wash.; and Patty Murray, D-Wash. — sent a letter along with Alaska Sens. Lisa Murkowski and Dan Sullivan June 13 to British Columbia Premier John Horgan highlighting the steps states and the federal government have taken to monitor transboundary rivers and what they want provincial officials to do in return. They were compelled to send the correspondence because there weren’t enough delegates to the International Joint Commission from either country to hold its biannual meeting in April, according to the letter. IJC spokeswoman Sally Cole-Misch said it took roughly a year for President Donald Trump’s three appointees to the commission to be confirmed by the Senate and Canadian Prime Minister Justin Trudeau appointed three new Canadian commissioners as soon as the terms of those appointed by his predecessor were completed. The panel of six new IJC commissioners was sworn in May 17. The Boundary Waters Treaty with Canada established the IJC in 1909 specifically to settle disputes over watersheds that cross or comprise the international border. For years, members of the Alaska congressional delegation have been asking provincial leaders, and domestically, State Department officials, to address potential water quality problems from large hard rock mines at the upper reaches of transboundary watersheds in British Columbia; this is the first time senators from other border states have formally joined them. In the Lower 48, transboundary concerns have centered on Canadian coal mines. While numerous Alaska environmental, commercial fishing and Alaska Native groups have called for IJC involvement to provide further protection for Alaska salmon fisheries downstream from mining activity, the commission can only be spurred by a formal call from either the State Department or Canada’s Global Affairs Department. Attempts by the Alaska delegation to get former Secretary of State John Kerry to review Alaska’s concerns regarding Canadian mining activity in transboundary watersheds largely proved unfruitful. Concerns over the British Columbia mine permitting process were heightened after the 2014 Mount Polley mine tailings dam failure. The Mount Polley copper and gold mine is in the upper reaches of the large Fraser River watershed, a major salmon producer for Canada and the U.S. A British Columbia auditor general report concluded the Mount Polley dam breach was the result of inadequate engineering and poor oversight from regulators. The senators’ letter notes that the departments of State, Interior and the Environmental Protection Agency set up a joint working group to determine what could be done to safeguard U.S. economic interests related to the commercial fisheries and tourism enterprises that could be compromised by the impacts from upstream mines. Congress last year approved $1.8 million for Interior Department agencies to spend on improved downstream water quality monitoring systems in transboundary rivers. “While we appreciate Canada’s engagement to date, we remain concerned about the lack of oversight of Canadian mining projects near multiple transboundary rivers that originate in B.C. and flow into our four U.S. states,” the senators wrote to Premier Horgan. “To address these concerns, we have taken steps in partnership with our federal and state governments to improve water quality monitoring and push for constructive engagement with Canada. “In sharing an update on our efforts, we hope to encourage you, in your role as Premier, to allocate similar attention, engagement, and resources to collaborative management of our shared transboundary watersheds.” Alaska Tribes and conservation groups insist a host of mines proposed in the Canadian portions of large salmon-bearing transboundary rivers that flow into Southeast Alaska, such as the Stikine and Unuk, could degrade water quality and endanger those fisheries. They also contend Canadian bonding requirements for mining companies are inadequate. “This is a multi-state, international problem for which we need a multi-state, international solution,” United Fishermen of Alaska Executive Director Frances Leach wrote in a formal statement following the release of the senators’ letter. “Right now B.C.’s massive open-pit mines and waste dumps put some of Alaska and B.C.’s most important salmon rivers, and the fishing jobs that rely on them, at risk. Alaska fishermen and the thousands of people across the world who enjoy wild salmon expect and deserve better from B.C regulators.” Former British Columbia Minister of Energy and Mines Bill Bennett said in a prior interview with the Journal that the provincial and federal Canadian governments have environmental protection requirements for mines on par with the U.S. and Alaskans’ concerns come from a lack of adequate communication between the governments on the issue. Bennett is now a director for the British Columbia-based mining exploration firm Eagle Plains Resources Ltd. The Alaska delegation specifically has asked provincial environmental regulators to provide State of Alaska officials, tribes and Alaska Native corporations a formal consultation process during mine permit reviews. In November 2015 former Gov. Bill Walker and then British Columbia Premier Christy Clark signed a memorandum of understanding to create a transboundary Bilateral Working Group to facilitate the exchange of best practices, marine safety, workforce development, transportation links and joint visitor industry promotion. Bennett said at the time that the MOU represented a significant change in how the state and province interact. Last November British Columbia mine regulators began the process of seeking firms to clean up acid rock leakage from the Tulsequah Chief mine in the Taku River drainage east of Juneau. State officials contend the multi-metal mine that operated for just six years has been leaking acid wastewater into the Tulsequah River, which feeds the Taku, since it was closed in 1957. ^ Elwood Brehmer can be reached at [email protected]

Report: US needs more domestic sources for critical minerals

Filling the country’s domestic deficit of numerous minerals and metals has been a priority of the Trump administration, which on June 4 released a plan for addressing what it considers to be a national security issue. The Commerce Department report, entitled, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals” lays out the ways in which the administration believes the U.S. can improve domestic control over 31 of the 35 often hard to pronounce minerals designated as “critical” in a May 2018 Interior Department report. Interior’s critical minerals list notes that the country imports more than 50 percent of its supply of 31 minerals and relies completely on outside sources for 14 of those, including graphite and many minerals that are essential for modern energy storage and advanced technologies. For several years, the U.S. imported all of its rare earth elements — used in very small quantities in many electronic devices from smartphones to components for fighter jets — until the Mountain Pass rare earths mine in southern California reopened last year. The Interior Department also highlights the fact that China is the country’s primary source for many of the minerals it imports, which provides leverage to a government the administration is now at odds with over trade issues. The reports were compiled following a December 2017 Executive Order signed by President Donald Trump directing the Agriculture, Commerce, Defense, Energy and Interior departments to prioritize addressing the nation’s critical mineral situation. Among the priorities in the critical minerals strategy is a push for federal agencies to thoroughly assess the country’s resources for the various imported minerals and for specifically the Forest Service and the Bureau of Land Management to reform their land-use planning methods to protect access to those resources. BLM oversees 245 million acres of federal land — about 10 percent of the country — and subsurface mineral rights to roughly 700 million acres. According to the bureau, BLM-controlled lands hold approximately 30 percent of the nation’s minerals. The Forest Service manages nearly 193 million acres. The report states that many mineral deposits cannot be developed because of existing land withdrawals, reservations or other land-use restrictions. It notes that those designations can serve useful purposes for everything from wildlife protection to military use, but recommends the Forest Service and BLM coordinate with the U.S. Geological Survey along with state and Tribal governments and mining industry representatives to evaluate areas with use restrictions for mineral resources. “Any (mineral resource) analysis performed should quantify and qualify the economic and national security implications of: reducing the size of an existing withdrawal, reducing the area affected by a land-use designation, changing planning allocations, or revoking an existing withdrawal,” the report states. It further emphasizes a desire to prioritize reviews of withdrawn areas based on the potential for discoveries of critical minerals. Sen. Lisa Murkowski, who chairs the Energy and Natural Resources Committee, said she welcomed the strategy report in a statement from her office. “(The report) provides clear direction on how to reduce our reliance on foreign minerals and thereby strengthen our economy and national security. I urge the administration to swiftly implement its recommendations, especially those that encourage domestic mineral production and continued research into processing technologies, and will continue my work to compliment these efforts with new legislative authorities,” she said. In May, Murkowski co-sponsored the American Mineral Security Act along with Sen. Dan Sullivan, which, among other things, would require the Interior Department to update a list of critical minerals every three years. The Mineral Security Act would also mandate nationwide assessments for the availability of each mineral on the critical list as well as direct Interior and Forest Service mineral project permitting reforms aimed at reducing the time to reach permit decisions and authorize research for critical mineral recycling or replacement materials. While many policymakers and national security experts regularly raise concerns about the United States’ reliance on China for many of the minerals the country imports — such as graphite, rare earths, bismuth, barite and others — the strategy recommends strengthening trade ties with current geopolitical partners and allied countries that could be preferable sources for some minerals. Bokan rare earths Alaska is rich in many minerals and a deposit near the southern tip of the state has the potential to be a significant domestic source of rare earth elements. The Bokan Mountain rare earth underground mine prospect near tidewater on southern Prince of Wales Island holds more than 4.7 million metric tons of indicated rare earth ore, according to a 2015 resource assessment by Nova Scotia-based Ucore Rare Metals Inc., the company working on the project. That translates to approximately 63.5 million pounds of collective rare earth metals. However, Ucore has shifted its attention away from advancing the mine since 2015 following a drastic fall in global rare earth prices. Instead, the company has focused on developing a small mineral processing facility in nearby Ketchikan by late 2020. Ucore leaders have discussed the prospect of financing at least part of the estimated $25 million strategic minerals complex through the state-owned Alaska Industrial Development and Export Authority. The Alaska Legislature in 2014 authorized AIDEA to issue up to $145 million in bonds to help finance the Bokan mine project, which the company estimated in 2013 would cost $221 million to develop. Ucore CEO Jim McKenzie said recent U.S.-China trade tensions have highlighted the importance of addressing domestic mineral supply issues and have recently boosted prices particularly for heavy rare earth elements. There are 17 minerals defined as rare earth elements, but “heavy” rare earths — such as europium, terbium, and ytterbium with a greater atomic weight — are the most sought after and are used in products that rely on high-temperature magnets. More common lighter rare earths are used in a plethora of applications including LED displays. Heavy rare earths account for roughly 40 percent of the mineralization at Bokan, according to Ucore. “The Bokan deposit is unique in the U.S., with its unusual skew towards these valuable (heavy rare earth elements). Bokan is also unique in its ease of access, its limited projected development cost, and its significant financial backing by the State of Alaska,” McKenzie said in a formal statement. “We applaud the Trump administration for identifying these critical resources and streamlining their route to production.” Ucore officials declined to comment on the progress of the Ketchikan processing facility because of Utah and Nova Scotia court battles the company is in with Utah-based IBC Advanced Technologies, a metal processing technology company Ucore had entered into a joint-venture agreement with. The companies are now in litigation over that agreement. Ucore Vice President Randy MacGillivray did write via email that the company completed drilling and resource assessment work in 2014 and is satisfied with the results of the 2013 preliminary economic assessment of the Bokan project. Once Ucore officials decide to move ahead with the mine, they expect it will require two-plus years of permitting before construction can begin, according to MacGillivray. ^ Elwood Brehmer can be reached at [email protected]

Southeast metal prospect has major potential

A Southeast Alaska multi-metal prospect has the potential to produce a big payback if developed into a mine largely due to its proximity to established infrastructure, according to an early evaluation of the project. Constantine Metal Resources’ underground Palmer copper-zinc-precious metals prospect north of Haines could generate $266 million in after-tax cash flow despite a projected mine life of just 11 years based on the results of a preliminary economic assessment, or PEA, released by the company June 3. The Palmer project is a joint venture between Vancouver-based Constantine as the majority and Dowa Holdings, a Japanese metal manufacturer. The deposit is adjacent to the Alaska-Canada border and near the Haines Highway about 40 miles northwest of Haines along the Klehani River, which flows into the Chilkat River. It is on a mix of federal mining claims surrounded by land owned by the Alaska Mental Health Trust Authority, which is open for development. If developed as currently envisioned, the Palmer project would be an underground mine that would process up to 3,500 metric tonnes of ore per day, or approximately 12.5 million metric tonnes over the life of the mine. From that, the mine would produce more than 1 billion pounds of zinc, 196 million pounds of copper, 18 million ounces of silver, 91,000 ounces of gold and nearly 2.9 million tonnes of barite, a common industrial mineral, according to Constantine. The mine would cost $278 million to develop and require another $140 million for sustaining capital and reclamation costs for an estimated all-in cost of $418 million. Those costs translate to an operating-capital cost of approximately $65 per tonne with operating income of $92 per tonne of ore, according to the PEA figures. Constantine CEO Garfield MacVeigh said in a corporate release that the PEA is a major milestone for the Palmer project and demonstrates “a high-quality project with strong economics and a progressive, environmentally conscious mine design.” Advanced zinc-copper projects such as Palmer with favorable economics are scarce in North America, MacVeigh said. “What sets the Palmer project apart from its peers is excellent access by paved all-season highway and secondary roads, close proximity to an existing Pacific port ore terminal, reasonable and manageable capital costs, significant district-scale upside for additional mineral resources, and a joint venture that includes a global leader in the zinc smelting business,” he said further. Constantine expects the project would support about 260 full-time jobs during operation. Constantine plans to truck copper and zinc concentrates to the Haines port, where the material would be barged about 15 miles to the deepwater ore terminal in nearby Skagway, which is owned by the Alaska Industrial Development and Export Authority. The barite concentrate would be barged separately from Haines to a rail terminal in Prince Rupert, British Columbia, just south of Ketchikan. Barite is an important industrial mineral in drilling mud for oil and gas wells and has other applications in the medical field. Barite from Palmer would be ready for use and not require additional refinement, according to Constantine. The Palmer deposit currently consists of indicated resources of 539 million pounds of zinc at an average grade of 5.3 percent; 154 million pounds of copper at a 1.5 percent average grade; and 1.1 million tonnes of barite along with gold and silver resources. Inferred resources include more than 1 billion pounds of zinc; 124 million pounds of copper; more than 2.6 million tonnes of barite. According to the PEA, zinc would account for 48 percent of the total value of all the concentrates produced from the Palmer project. Constantine touts Palmer as an environmentally sound project largely due to a design that would eventually store potentially acid-generating rock underground — backfilling mined ore — preventing exposure to rainwater and potential acid leaching. Constantine estimates that 78 percent of the mine tailings would be used as backfill. A portion of the potentially acid-generating waste rock would need to be stored above ground early in the mine’s life until space was available to begin the backfilling underground. “Desulfurized tailings,” accounting for about 15 percent of the total processed material, would permanently be stored above ground, according to the company. However, the Palmer project has detractors. The Chilkat Indian Village of Klukwan and several local conservation groups sued the Bureau of Land Management in December 2017 for not adequately considering the potential impacts of future mine development when approving exploration permits for the project. Alaska U.S. District Court Judge Timothy Burgess rejected the claims in a March 15 ruling that has since been appealed to the U.S. 9th Circuit Court of Appeals. Southeast Alaska Conservation Council staff scientist Guy Archibald said in an interview that the group and others oppose the project because of its location — in the upper reaches of a salmon-bearing watershed — and the omnipresent potential for acid leaching from massive sulfide deposits such as Palmer. Archibald said Constantine’s overall plan to permanently store potentially acid-generating tailings underground is a better plan “on paper” than other traditional mine operations, but he also noted “that even the best laid plans quite often go awry.” Elwood Brehmer can be reached at [email protected]

Resource potential expands at Alaska graphite prospect

The potential of a unique Western Alaska mineral deposit keeps growing as its developers inch closer to making it a mine. Stan Foo, chief operating officer of Graphite One Inc., told a gathering of the Alaska Support Industry Alliance on May 9 in Anchorage that infill drilling done last year at the company’s Graphite Creek prospect on the Seward Peninsula helped significantly increase the resource estimates for the deposit. “We’re very excited about the improvements we made. We increased the resource by about 14 percent last year,” Foo said. Located on the northern face of the Kigluaik Mountains about 40 miles north of Nome, the Graphite Creek deposit holds measured and indicated resources estimated at nearly 11 million metric tons of ore at an average grade of about 8 percent graphite. The inferred resource is now at approximately 92 million metric tons of ore at 8 percent graphite, a 29 percent increase from figures released in a June 2017 preliminary economic assessment of the project. Overall, Graphite One now believes the deposit could hold more than 7.3 million metric tons of graphite, according to company filings. Foo said some areas of the deposit are more than 20 percent graphite and chunks of the mineral are scattered on the ground in the exploration area. “Some of this graphite is so continuous it looks like an oversized pencil lead when you see the core box (drilling samples),” he said. “It’s a very prominent mineral in the area.” Formerly Graphite One Resources Inc., the company recently dropped “Resources” so its name would better reflect plans to become an integrated graphite producer and manufacturer, instead of being solely a mine operator, according to Foo. Small-scale mining took place in the early 1900s but the area has mostly gone undeveloped since. Graphite One leaders envision a mine that would be much larger than what was done in the area previously, but would still be fairly small by today’s standards, Foo said. Current plans are for mining about 1 million tonnes of ore per year, which would be distilled at an on-site processing plant into about 60,000 tonnes of 95 percent graphite concentrate. The rough concentrate would then be shipped to a purification plant the company hopes to develop somewhere in the Pacific Northwest, where it would be refined into several types of more than 99 percent pure graphite concentrate. Graphite One partnered with the Alaska Industrial Development and Export Authority in 2017 to analyze the prospect of siting the purification plant in Alaska; however, access to lower-cost power in the Pacific Northwest drove the decision to site the plant further south, according to Foo. Overall development cost for the mine and processing plant was pegged at $233 million in a 2017 preliminary economic analysis of the project. The purification-manufacturing plant would cost another $130 million. Full development would also require about 270 employees at the mine, according to the PEA. The mine itself would be a relatively small open-pit operation, Foo said, and the ore would be processed using basic flotation methods. Other Graphite One officials have characterized the prospective mine as an “oversized gravel pit,” as there is no need for the chemical leaching processes commonly found at metal mines. The Graphite Creek deposit contains four types of graphite — a rarity — which led Graphite One to coin the term “STAX” graphite for its spherical, thin flake, aggregate flake, and expanded flake graphite structures, Foo said. The various types of graphite each have characteristics that make them suitable for different applications, but demand for the mineral these days mostly comes from lithium ion battery makers for use in electric vehicles and other high-stress battery applications. “These are all naturally occurring qualities of this deposit, which makes it very unique and the (U.S. Geological Survey) will be studying our deposit this year to determine exactly why this occurrence has these qualities and can we find others in the United States,” he said. He also noted that lithium ion batteries have 10 to 30 times more graphite than lithium. “We like to think they should be called graphite ion batteries. You talk to the cobalt guys; they’d like them to be called cobalt ion,” Foo quipped. In addition to being a primary component for modern energy storage, graphite has long been a popular dry mechanical lubricant. Its resistance to heat also makes it useful in high-temperature applications and its strength and flexibility make it the go-to material for fishing rods and many other uses — in addition to pencils. If developed, Graphite Creek would be the sole domestic source of graphite. China currently controls most of the world’s supply and graphite is on the U.S. Geological Survey’s critical minerals list as a strategically important material for which the country relies on imports. This year, the company will continue its resource evaluation and environmental baseline data collection work while also conducting a pre-feasibility study to evaluate the viability of the project in more detail, Foo said. He added that environmental permitting could be “very straightforward” and suggested the project could warrant a simpler environmental assessment — avoiding the rigorous environmental impact statement process — depending on the U.S. Army Corps of Engineers’ determination on the likely impacts to wetlands. If it all goes as planned, Foo said Graphite One could be turning ground in about four years. Elwood Brehmer can be reached at [email protected]

FISH FACTOR: Pebble mine critics cite concerns over dust from operations

Editor's note: In response to the statement below that "little to no baseline data on soil or sediments is presented in the draft environmental impact statement, or DEIS, compiled by the U.S. Army Corps of Engineers," the Pebble Partnership supplied the following links to appendices in the DEIS containing the baseline soil and sediments data: Appendix K3-14 discusses soils  Appendix K3-18 discusses sediments  Analytical chemistry database  EBD Chapter on Trace Elements  According to the Pebble Partnership, the appendices contain data from approximately 20,000 soil/sediment sample results collected from 150+ sites across several hundred square miles.  ORIGINAL STORY Bulldozers, blasters, excavators, vibrators, jaw crushers, drillers, graders, crushers, huge trucks and other heavy equipment are tools of the trade when building and operating large mines — and they all kick up a lot of dust. In the case of the Pebble mine, the project is expected to generate 8,300 tons of so called fugitive dust in its annual mining operations. Another 5,700 tons will come from building the 83-mile main road to Cook Inlet, and the 35 times daily round trips trucking mineral concentrates will churn out 1,500 tons of road dust each year. When it’s blowing in the wind, the dust will land on at least 1,500 acres of wetlands and 300 acres of lakes, ponds and streams, according to analyses done for the United Tribes of Bristol Bay, a tribal consortium representing 15 Bristol Bay tribal governments that represent more than 80 percent of the region’s total population. The dust will contain particles of the metals being mined, notably, copper, which when it leaches into water bodies, has been proven to be toxic to the olfactory system of salmon. “Increases in copper concentrations of just 2 to 20 parts per billion, equivalent to two drops of water in an Olympic-sized swimming pool, have been shown to impact the critical sense of smell to salmon,” said Dr. Thomas Quinn, a professor at the School of Aquatic and Fishery Sciences at the University of Washington. “Salmon use smell to identify predators, prey, mates, and kin. And importantly, they use sense of smell to return to their natal streams.” But little to no baseline data on soil or sediments is presented in the draft environmental impact statement, or DEIS, compiled by the U.S. Army Corps of Engineers that is currently undergoing public review. “One of the most eye-opening things was, when you’re looking at fugitive dust, you’re looking at it from the perspective of human health and there are 10 or 11 hazardous air pollutants that you must look at when you’re permitting for air quality. Copper is not a human health hazard, so that was completely omitted from any mention in the discussion on dust,” said Kendra Zamzow, an environmental geochemist with the Center for Science in Public Participation. Zamzow, who is from Chickaloon, has pored over thousands of supplemental documents to the DEIS called requests for information, or RFI, on behalf of the United Tribes. “They have a table in the soils chapter that lists how much they expect in concentrations of things like arsenic or cadmium or mercury increases over time in soils based on loading from dust. But there is no mention of copper. And this is going to be a copper mine,” Zamzow said. “We know from the element analyses they’ve done on concentrations in the ore and the waste rock that copper will be one of the top two components in the rock, and probably the highest of the trace metals. “And there’s absolutely no mention of the copper, which to me is really surprising because we know how copper is toxic to aquatic life, and everyone knows impacts to aquatic life is the entire reason that people are concerned about the Pebble mine.” The copper will inevitably leach into water bodies where fish and aquatic life in general will be exposed. “A lot of these particles could become available to the base of the food chain, the benthic feeders and zooplankton,” Zamzow said. The copper-saturated dust would blow from the mining area, whereas road dust would likely have a different composition. “The road dust is expected to impact a lot more waters than the mine site. But we don’t know to what extent concentrates could be making up part of the dust because it is not discussed at all. And mitigation mostly talks about watering the road,” Zamzow said. According to a 2014 Assessment of Potential Mining Impacts on Salmon Ecosystems at Bristol Bay by the Environmental Protection Agency, the transportation corridor in the Kvichak River watershed would cross approximately 64 streams and rivers of which 55 are known or likely to support migrating and resident salmonids, including 20 streams designated as anadromous waters. The corridor would run near Iliamna Lake and cross multiple tributary streams. Lower Cook Inlet also will get impacts from the Pebble dust as Amakdedori Creek in Kamishak Bay will be the export terminal to ship out the mined materials. Trucks from the mine site will transport the finely powdered concentrates to ice breaking barges for an 18 mile daily transit across Iliamna Lake, truck it on a 30-mile road to the coast, load it onto barges, then offload to a mothership 12 miles or more offshore. “They’re going to take 38-ton shipping containers off of trucks, lower them into a ship’s hold and turn them upside down to dump out the concentrates. And it will have very high concentrations of copper,” Zamzow said, adding that the DEIS says the transports will include nearly 630,000 tons of materials per year. Pebble’s mine site structures will include an open pit, a tailings storage facility, low grade ore and overburden stockpiles, quarry sites, water management ponds, milling and processing facilities, a 188-mile natural gas pipeline from the Kenai Peninsula to the site, a power plant, water treatment plants, camp facilities and storage facilities. “Building and powering a mine like Pebble or Donlin is like adding a new city to Alaska,” said Zamzow. “Dust is another example of how the Corps of Engineers has not done their job and is not holding Pebble up to a high standard of scientific rigor that Bristol Bay demands. And our decision makers are letting them,” said Alannah Hurley, United Tribes executive director. The public comment period for the Pebble Mine has been extended to June 29. Find more information at www.pebbleprojecteis.com. Expo No. 3 The third annual Bristol Bay Fish Expo is just weeks away as the region gears up for the world’s biggest sockeye salmon fishery. The event is a fundraiser for local childcare held in Naknek, the fishing hub for 10 major seafood processors and a fleet of nearly 1,000 boats. “There was no child care whatsoever in the community,” said Sharon Thompson, Expo co-organizer and board president of Little Angels Childcare Academy. The Expo so far has raised nearly $40,000 to open the doors and pay staff at the Academy, which received its state license last week to serve up to 15 children. “It has been the reason that Little Angels could continue existing while we got through the licensing process,” Thompson said. The Expo is on track to match or beat the 50 trade show vendors from last year. Other features include the premiere of The Wild, a film by Mark Titus and a visit from renowned sushi chef Taichi Kitamura who will be serving salmon dishes. Two of the biggest Expo hits are the Fashion and Wearable Art Show followed by an Auction featuring Bristol Bay fisherman and auctioneer Kurt Olson. (Donations are needed for the auction.) Invitations also have been sent to Alaska’s policy makers. “Those who are in public service and our politicians are forming the policies that will affect everything from our industry to our way of life. So, we are putting invites out to Sen. (Lisa) Murkowski, Gov. (Michael J.) Dunleavy, and a lot of others because it is an important part of our show,” Thompson said. The Expo theme this year is “feeding our families and fueling our dreams,” which Thompson said is exactly what the Bristol Bay salmon do. “We are just so grateful because our wild salmon resource is supporting all of this,” she said. “In times of budget crises, they’re putting food on our table, food in our freezers, and the wild salmon has provided a child care facility.” The Bristol Bay Fish Expo is set for June 9 and 10 at the Naknek school. See more at www.bristolbayfishexpo.com. ^ Laine Welch lives in Kodiak. Visit www.alaskafishradio.com or contact [email protected] for information.

No plan for Seward coal terminal three years after last shipment

Nearly three years after it went dark, the future of the Seward Coal Loading Facility is still unclear. The conveyor-belt loading dock extends out into Resurrection Bay from a yard near the Alaska Railroad Corp.’s terminal in Seward. From 1984-2016, it was used to load export shipments from the Usibelli Coal Mine near Healy. At its peak in 2011, the railroad moved about 200 coal trains back and forth to supply export demands, and the operation employed about 100 people between operator Aurora Energy Services, the railroad and Usibelli, according to information from the Alaska Railroad Corp. That changed in 2016, when the railroad decided to shutter the facility indefinitely after years of coal export declines. By that time, exports had decreased about 95 percent from a peak of 1.1 million metric tonnes in 2011 to 68 tonnes in 2016, only serving one ship as opposed to the 18 required in 2011. Cheaper coal from Indonesia and Australia pushed down the market price, cheaper natural gas entered the scene and the U.S. dollar was very strong, making it harder for Usibelli’s export business to pencil out. With that little volume, the railroad corporation operated the facility at an approximately $1.2 million deficit, according to the 2016 document announcing the closure. The facility isn’t useful for much else, but would remain intact for now, according to the announcement. “While unsuitable for unloading passenger vessels or cargo ships, the SLF dock can provide mooring services,” the announcement stated. “In light of the railroad’s mission to foster economic development, the facilities will be left intact for now to facilitate resumed operations in support of our customer if new opportunities arise. That meant Usibelli’s coal would be kept in Alaska to supply the state’s six coal-fired power plants. At its peak, about half of the mine’s production was being exported, so the operations took a hit when the export market disappeared. The company still views it as a temporary halt in its exports and is constantly looking for ways to reenter the market, according to Lorali Simon, the vice president of external affairs for Usibelli. However, the railroad corporation’s decisions about its coal operations have made that a higher threshold, she wrote in an email. “The Railroad, who has experienced tough financial circumstances for many years, made certain decisions regarding the Seward Facility that make it difficult to respond quickly to export opportunities,” she wrote. “The Railroad sold the coal cars used for the export business; (and) the Railroad put the facility into ‘cold storage.’ It will take capital (both time and money) to get the facility back up and running.” In 2016, the railroad corporation estimated that it would cost about $200,000 to bring the facility back online, take a 30- to 90-day lead time and require about eight shiploads annually to break even. However, that was before some of the coal cars were sold. In its 2016 announcement, the railroad corporation stated that it offered the aluminum coal hoppers to Usibelli for purchase, but the coal company declined. The railroad corporation does still maintain a fleet of coal cars. Though the railroad corporation does not have updated figures, it’s likely more expensive than that to get the facility online again, said Tim Sullivan, the director of external affairs for the railroad. “It’s probably a little bit more than that now,” he said. “If you leave it to lay fallow for a while, the costs go up.” Sullivan didn’t have an estimate available for what it would cost to dismantle the facility. At this point, the railroad’s plans for the coal loading facility haven’t changed, he said. Though it can’t be used for much else, ships can moor to it if necessary although that has been infrequent. The railroad has been reevaluating its facilities in Seward in recent years, aiming at repairing the passenger and freight docks, but those plans don’t really affect the coal loading terminal at present. The loss of the coal exporting business hit both companies in the wallet. Usibelli, which in 2011 employed 150 people, today employs about 100 people. Most of those employees have been lost through attrition rather than layoffs, Simon said. “Since roughly 30 percent of our employees are second-, third-, and fourth-generation employees, and the average tenure was close to 15 years in 2011, many folks naturally retired,” she wrote. The railroad corporation has taken hits in several markets in recent years, with a decline in the coal export business and in the oil field. Freight makes up the majority of the railroad’s revenue, with much of that coming from shipping materials north for oilfield explorations. Though the oil patch has been rebounding with increased exploration on the North Slope and potential new exploration in the Arctic National Wildlife Refuge, the last few years have still been financial tough on the railroad; its workforce has declined by about 100 to 150 year-round employees, Sullivan said. “We’re focused on the services that we continue to provide,” he said. “We saw the export coal market reduced and went away, and at the same time we were seeing the refined jet petroleum coming down from the North Pole refinery … decline and then disappear as well. It was a couple big hits for the Alaska Railroad. We’ve taken measure of those issues and we think we’ve gotten to a point where we can continue to weather what’s going on.” Since the beginning of the year, average coal prices on the market have declined, with production so far in 2019 about 7.2 percent behind the production at the same time in 2018, according to the U.S. Energy Information Administration. The long-term projections are for coal’s share in the U.S. energy generation sector to decline between the present and 2050, giving way to renewables and natural gas, according to the EIA’s 2019 Annual Energy Outlook. The U.S. is expected to continue to be a net coal exporter, but the actual amount of coal exported is not expected to increase because of competition from other producers closer to global markets, according to the outlook. At the same time, in the years since the Seward Coal Loading Facility closed, the federal administration has drastically changed to one much friendlier to coal. President Donald Trump’s administration has made several moves to change rules previously set in place during Barack Obama’s administration, including moving to reduce restrictions on emissions from coal-fired power plants. Congress also invoked the Congressional Review Act to repeal the Stream Protection Rule put in place during the Obama administration. Simon noted the repeal of the Stream Protection Rule and said the reduction in regulations “has allowed the mining industry to get back to work.” Elizabeth Earl can be reached at [email protected]

Trilogy keeps refining Arctic project as it awaits road permit

Trilogy Metals is in the midst of advancing two mineral prospects in Northwest Alaska but it’s still on the lookout for additional opportunities in the region. The Vancouver-based mining company is preparing its most advanced Arctic copper, zinc and precious metal deposit for permitting. CEO Rick Van Nieuwenhuyse wrote via email that Trilogy is specifically developing an environmental evaluation document to ostensibly organize and vet all of the information about the prospect and planned open-pit mining operations before it is submitted in formal state and federal permit applications. The environmental evaluation goes hand-in-hand with a feasibility-level study of the mine and its forecasted economics, according to Van Nieuwenhuyse. Trilogy has $7 million budgeted for the feasibility and environmental work this year with a goal of having the feasibility study done in early 2020. He expects to formally start the permitting process once the Ambler Mining District Industrial Access Project is “substantially permitted” through its own environmental impact statement process, he wrote. Generally referred to as the Ambler road, the access project is a state-led plan for a 211-mile unimproved industrial road off of the Dalton Highway to reach the large Ambler mining district, which holds Trilogy’s Arctic and Bornite prospects, among others, on the southern flank of the Brooks Range. The road project has drawn opposition from residents of the area and environmental groups who are worried the project will disrupt caribou migrations, which Van Nieuwenhuyse acknowledges is the most significant subsistence food source in the region. The proposed mines have also drawn scrutiny for potential impacts to salmon and whitefish runs in the Kobuk River drainage. The Alaska Industrial Development and Export Authority is leading development of the road, which has an estimated cost of between $305 million and $346 million for a basic, single-lane gravel road. It would be financed by the authority with bonds that would be paid back through tolls paid by Trilogy Metals and any other companies that would develop one of the other prospects in the Ambler mining district. The Bureau of Land Management is writing the road EIS and the first draft of the environmental review is expected in late summer or early fall with a final EIS published towards the end of 2019, according to BLM’s project website. At its core, the Arctic prospect is about as good as undeveloped metal deposits come these days, according to Van Nieuwenhuyse. With just more than 43 million metric tons of probable reserves averaging 2.3 percent copper, 3.2 percent zinc and smaller amounts of lead, gold and silver, it’s roughly 10 times the average grade being mined in many other open pit copper mines today, he has said previously. Trilogy’s prefeasibility study of Arctic estimates the relatively small but high-grade prospect would cost $911 million to develop and operate over a short 12-year life but with roughly $450 million in annual free cash flow it would have just a 2-year payback. The mill and other facilities at Arctic could also be used for the company’s other, larger, but less explored Bornite copper and cobalt prospect about 20 miles to the southwest. While most of the exploration drilling at Arctic is done, Trilogy has a $9.2 million drilling program planned for the upcoming summer at Bornite. That work will be a combination of infill and expansion drilling for the existing known deposit, according to a company presentation. The Bornite prospect is on NANA Regional Corp. lands and under a partnership with Trilogy, the Alaska Native corporation can receive up to a 2.5 percent royalty on the ore concentrates produced from the prospect if it is developed into a working mine. Trilogy drilled 12 boreholes at Bornite in 2018. The prospect holds about 900 million pounds of indicated copper and 77 million pounds of indicated cobalt with another nearly 5.5 billion pounds of copper inferred, according to Trilogy’s resource analysis. Finally, Trilogy is also spending $2 million this year in a joint venture with South 32 Ltd. to conduct an electromagnetic geophysical survey of the entire roughly 75-mile long Ambler district belt. The airborne survey is being done as a new way to hunt for metal deposits in the area where dozens of prospects have been identified over the years. Targets identified by the survey will be examined more closely with follow-up drilling, Van Nieuwenhuyse said in a February company release. “It is exciting to be drilling new exploration targets again,” he said. “We are confident that we can find additional high-grade polymetallic resources along this prolific mineral belt.” ^ Elwood Brehmer can be reached at [email protected]

Corps releases draft EIS for Pebble

Alaskans interested in the future of the Pebble mine project should get their reading glasses ready. The U.S. Army Corps of Engineers is asking for feedback on its approximately 1,400-page draft environmental impact statement, or EIS, released Feb. 20 for the Pebble project. A 90-day public comment period begins March 1. Opponents of the mine contend the Corps limited its focus to environmental impacts at the mine site and ignored potential downstream effects, particularly to fisheries. To the contrary, Pebble Limited Partnership CEO Tom Collier said the company didn’t identify any major data gaps or substantive impacts that couldn’t be addressed in the draft document. “We see no significant environmental challenges that would preclude the project from getting a permit and this shows Alaska stakeholders that there is a clear path forward for this project that could potentially generate significant economic activity, tax revenue and thousands of jobs,” Collier said in a formal statement. Pebble estimates the project will generate about 2,000 jobs during its four-year construction and about 850 full-time positions over its 20-year life. “We have stated that the project must coexist with the important salmon fishery in the region and we believe we will not harm the fish and water resources in Bristol Bay. Now we have a science-based, objective assessment of the project that affirms our work,” Collier continued. The draft EIS examines Pebble’s proposed project submitted to the Army Corps of Engineers in December 2017. The Corps adjudicates Clean Water Act Section 404 wetlands fill permit applications on behalf of the Environmental Protection Agency and the size of the Pebble project triggered a full EIS review under the National Environmental Policy Act. While the plan is scaled back from previous mine concepts, the overall project would still stretch 187 miles from the mine site north of Iliamna Lake to the edge of the Sterling Highway on the southern Kenai Peninsula. In between would be a natural gas pipeline up to 12 inches wide traversing the Cook Inlet sea floor for 95 miles from the Anchor Point area to a deepwater port at Amakdedori west of Augustine Island. From there, a two-lane, private road would run 35 miles northwest to a ferry terminal on the south shore of Iliamna Lake. An ice-breaking ferry would then shuttle materials 18 miles across roughly the midpoint of the large Iliamna Lake. Another 30 miles of industrial road would connect the north ferry terminal near the village of Newhalen with the mine site. The gas pipeline would follow the rest of the transportation corridor to the mine. According to the EIS, the 8,086-acre Pebble mine site would permanently displace 3,458 acres of wetlands and 73 miles of streams. The site would consist of a large bulk tailings dam and storage facility, a pyritic tailings storage facility, a 270-megawatt power plant, multiple water management ponds and plants and a 608-acre open pit, among other facilities. It would all support processing of about 1.4 billion tons of mine material during the 20 years of production based on Pebble’s initial plans. Roughly 100 acres of wetlands would be lost in development of the transportation corridor, according to the EIS. There would be indirect impacts from fugitive dust and partial dewatering to another approximately 1,900 to 2,100 acres of wetlands depending on which development alternatives are chosen for the final project, according to the document. Alternative construction options beyond Pebble’s proposal include a more northerly ferry and pipeline route across Iliamna to Pile Bay at the far east end of the lake with a corresponding deepwater port at Diamond Point near Williamsport instead of Amakdedori to the south. Summer-only ferry operations are also considered and would require additional storage at the mine for metal concentrates, fuel and general goods. Residents around the lake have raised concerns that a year-round ferry could disrupt winter travel across the lake ice. Another transportation alternative would eliminate the ferry altogether and instead calls for an 82-mile road around the north and east portions of Iliamna to the Diamond Point port. Pedro Bay Corp., which owns much of the land north and east of Iliamna Lake, issued a statement Feb. 22 saying the Native village corporation continues to oppose Pebble and recently rejected a right-of-way agreement for a transportation corridor across its land. Additionally, Bristol Bay Native Corp. owns subsurface rights to lands owned by area village corporations and executives have told the Journal the regional corporation may use its subsurface title to try and prevent Pebble from burying a pipeline or developing gravel quarries to build roads across village corporation lands. Alaska Peninsula Corp. owns lands south of Iliamna Lake and has a surface access agreement with Pebble. Shane McCoy, the Corps’ manager for the Pebble EIS, said in a conference call with reporters that the EPA suggested a concentrate pipeline along the north road right-of-way. The pipeline would eliminate copper-gold concentrate trucking, but 18 round trips per day between the mine and port would still be needed to haul molybdenum concentrate, fuel and other goods. The pipeline alternative also considers a second pipeline to send concentrate slurry water back to the mine for reuse. McCoy said he is not aware of other specific mines that employ lengthy concentrate pipelines but he was told the concept is in use elsewhere. The only significant change considered at the mine site is constructing a bulk tailings dam with the downstream buttress method, which is generally considered to be more stable and requires more material than the common centerline method Pebble has proposed. Corps officials note the state Department of Natural Resources is in charge of reviewing Pebble’s dam designs when the company applies for its state permits. Dry stack tailings storage — which would eliminate the risk of a bulk tailings dam failure — was discounted early in the evaluation because Pebble’s proposed mining operation would be about four times larger than the largest mine using the dry stack tailings method. It involves filtering water out of the bulk tailings until the material is 75 to 85 percent solid and “soil-like,” according to an appendix of the EIS. “(The dry stack) option would greatly complicate the logistics of the milling operation to include frequent clogging of filters, the need for an emergency storage (tailings storage facility) when the filter plant is down for maintenance, and the large number of personnel and equipment needed to transport and place the filtered tails. The option is not practicable,” the document states. Time to comment Critics of the Corps’ process contend the agency is rushing its evaluation of Pebble to fall within the four-year timeframe — starting in May 2017 — before the EPA can revisit its authority to “veto” the project. Those were the main parameters of a 2017 settlement between Pebble and the EPA that resolved a lawsuit the company filed against the agency in 2014. Former EPA Administrator Scott Pruitt declined to finalize rescinding the proposed Pebble “veto” in January 2018; it’s an outstanding issue that must be resolved before the Corps can issue Pebble a Section 404 permit, if it decides to do so. Jason Metrokin, CEO of Bristol Bay Native Corp., which has led opposition to the project, said in a statement provided to the Journal that the 90-day comment period should be much longer. “A 270-day comment period on the (draft) EIS is the first — and necessary — step in holding PLP accountable during the permitting process. Bristol Bay cannot become a laboratory to test unproven and unprecedented mining practices,” Metrokin said. McCoy noted the 90-day comment period is twice the statutorily required 45 days and the Corps released the draft EIS to the public a week before the comment period begins to give interested individuals a head start on reading it. He said Corps Alaska District officials are discussing the possibility of extending the comment period. Pebble advocates argue many who are insisting on a longer comment period simply want to delay the EIS process in any way possible. Metrokin and leaders for Bristol Bay Native Association and Bristol Bay Economic Development Corp. wrote to Army Corps officials Feb. 5 requesting a 270-day draft EIS comment period. They stressed that Pebble has proposed to increase the amount of material it would mine by 25 percent since first applying for its wetlands permit and “some of the aspects of (Pebble’s) proposal appear to us to be unprecedented in the world of hard rock mining.” Sen. Dan Sullivan told reporters shortly after the EIS was published that he would likely be making a formal request to the Corps for a longer comment period given the scope and significance of the document. Sullivan has previously said he would generally like to reform and streamline the NEPA process to prevent unnecessary delays for development projects. Sen. Lisa Murkowski told the Journal in a Feb. 22 interview that her initial reaction was that the comment period should also be longer than 90 days for similar reasons but she couldn’t specify exactly how long would be appropriate because the EIS had just been released two days prior. She encouraged Alaskans to take the comment period seriously and said she will meet with Corps officials after having a chance to review the draft EIS herself. “The expectation of Alaskans and certainly my expectation is that this process that (the Corps of Engineers) is going through has to be rigorous; it has to be thorough; it has to be robust; and anything less than that is just not right and in fairness is just not acceptable,” Murkowski said of the Pebble EIS. Elwood Brehmer can be reached at [email protected]m.

DEC nominee: Experience a plus, not a problem

Jason Brune insists his time working for a former investor in the Pebble mine project and advocating for other resource developments in Alaska is experience that benefits his newest role leading the Department of Environmental Conservation, despite claims by many detractors that it should disqualify him from consideration. Among the first appointments to Gov. Michael J. Dunleavy’s cabinet in November, Brune told Senate Resources Committee members during a Jan. 25 hearing on his confirmation that the questions regarding his professional background are “appropriate and fair,” while also noting that he has no financial interests in the Pebble Limited Partnership and has sold all of his stocks in oil and mining companies that work in the state. He highlighted a belief that Alaska has the most stringent environmental protection standards in the world and as DEC commissioner he demands everyone in the state be held to them. “My personal environmental ethic is ‘think globally, develop locally.’ I believe that provided that the companies that are trying to invest here do uphold the highest environmental standards, we should work with them to try to allow that investment and the development of those resources to occur here,” he said. Brune worked as the U.S. public affairs manager in Anchorage for London-based mining major Anglo American from 2011-14. Anglo American was a 50 percent partner in the Pebble project and invested more than $540 million in exploration and pre-development work at Pebble before announcing it would walk away from the project in September 2013. Before agreeing to lead DEC, Brune most recently worked as the lands and resources director for Cook Inlet Region Inc. He also spent more than a decade with the Resource Development Council for Alaska with about half of that time as executive director. The RDC is an organization that promotes Alaska’s oil and gas, mining, timber, tourism and fishing industries. Public testimony during the Senate hearing was overwhelmingly against Brune’s confirmation as DEC commissioner. Nearly all the individuals that testified in opposition to his confirmation cited his prior work history, contending he could not be objective in reviewing permit applications Pebble would need to submit to DEC before it can develop the large copper and gold mine. DEC is often most visible through its Spill Prevention and Response, or SPAR, Division, but the department also has primacy over several federal Clean Air and Clean Water Act programs as well as overseeing drinking water and food safety in the state. Opposition in written testimony offered to the Resources Committee before the hearing also centered on permitting Pebble. Brune received written support from industry groups such as the Alaska Miners Association, the Council of Alaska Producers and the Alaska Independent Power Producers Association. State commissioner-designees must be confirmed by a majority of legislators in a joint House and Senate vote that is usually held in spring near the end of the legislative session. Brune said in a Jan. 11 interview prior to the hearing that he doesn’t have a position on the highly contentious mine plan. “As a regulator I have the requirement to objectively look at what Pebble has to do to go through the process, so no, I don’t support the Pebble project. I don’t oppose the Pebble project. I think they deserve to have a fair hearing,” he said. The results of an annual poll of Alaskans by the Republican-led Senate majority caucus on current policy issues show that 61 percent of poll respondents oppose development of Pebble even if the company can secure all the requisite environmental permits. An outlier in the debate over Brune’s work history, Icicle Seafoods spokeswoman Julianne Curry, who is also a former executive director of United Fishermen of Alaska, wrote in support of his confirmation. “We have worked with Mr. Brune in the past and have found him to be knowledgeable and interested in finding solutions to problems facing Alaska. His hard-working nature and ability to cut directly into issues will help make him an asset in DEC,” Curry wrote. Brune said his experience in the resource industries can be beneficial to leading DEC and he believes it’s one of the reasons the Dunleavy administration asked him to apply for the job. “I’m not going to rubber stamp any permit for any project — for Pebble, for an oil and gas permit, for a fishing permit. I’m going to look at it and I’m going to make sure that they’re doing what they need to do to protect the environment but that we’re working alongside them to ensure that they’re given a fair process and that we’re partners in bringing responsible resource development jobs to the state,” he said in an interview. Brune’s undergraduate education is in biology and is what originally brought him to Alaska. He spent a summer in the early 1990s as an intern with the U.S. Fish and Wildlife Service cleaning and monitoring sea otters impacted by the Exxon Valdez oil spill in Prince William Sound. He later came close to a master’s degree in environmental science from Alaska Pacific University, but never completed his thesis. “(The otter work) was very impactful on me because I saw, of course, how resource development can be done in the worst way possible. The impacts of the oil spill, we never, as Alaskans, want to see that again. That never should have happened and it’ll never happen again hopefully and we need to put protections in place to make sure it never happens again,” Brune said. On other issues, he said DEC needs to be adequately funded so it can adjudicate permit applications but at the same time he and DEC division directors are working with Dunleavy’s Budget Director Donna Arduin to determine what the department can and can’t afford to do when the state is faced with major deficits and dwindling savings. One of the programs Brune suggested could be on the chopping block is the Ocean Ranger program, which he has heard there isn’t much support for continuing. The program was established in 2006 via a voter initiative and requires certified marine engineers or individuals with expertise in marine safety and environmental protection to monitor marine discharges from large cruise ships operating in the state. DEC also has other regulations and sampling programs to monitor cruise ship discharges, according to the Ocean Ranger web page. “There are things that in these fiscally austere times that we have to ensure are still appropriate,” Brune said. “We have things on the books that are unfunded mandates or that are not necessarily doing anything to protect the environment; they’re just adding regulatory hurdles for companies and we have to evaluate those.” Brune also stressed a belief that “local problems are best met by local solutions,” particularly noting that he hopes DEC can successfully implement recommendations on how to best improve at times dangerously poor winter air quality in the Fairbanks area from a local stakeholder group. He continued to say that he expects the issue of PFAS contamination in drinking water supplies, particularly in rural Alaska, to be a growing issue DEC will have to address during his tenure if he is confirmed. Per- and polyflouroalkyl substances, known as PFAS chemicals, are artificial chemicals used, among other things, as highly effective fire suppressants at airports. Brune said DEC is working with DOT to test wells near airports in several rural Southeast and Western Alaska communities and has found the contaminants in each well that has been tested, in addition to Fairbanks. “I think we need to be a resource for the citizens of Alaska to give them the confidence that the water they’re drinking, that the things they’re doing, are safe,” he said. ^ Elwood Brehmer can be reached at [email protected]

Major projects have permitting milestones ahead in 2019

Environmental reviews are underway on a suite of development projects that could permanently change the face of Alaska. The fate of several of those projects could largely be known by this time next year. It doesn’t get any bigger than the Alaska LNG Project. Estimated to cost roughly $43 billion by the Alaska Gasline Development Corp., it would be one of the largest infrastructure developments in the history of the country and the 18,000 jobs the Labor Department says it could generate by all accounts would send Alaska into a building frenzy. Long term, Alaska LNG is seen as a means not only to monetize the state’s stranded North Slope gas reserves, but also as the key to unlocking economic development in the Interior and other remote regions of the state by providing more affordable natural gas to areas that currently rely on fuel oil for heat and diesel for power generation. Former Gov. Bill Walker, the project’s biggest champion, insists increased access to natural gas could spur the development of other, currently economically challenged resource projects across Alaska, notably Interior mines. The Federal Energy Regulatory Commission is scheduled to release the first draft of the Alaska LNG environmental impact statement in February, with a self-imposed final EIS deadline coming Nov. 8, 2019. The subsequent deadline for a record of decision on the project is set for Feb. 6, 2020, according to FERC’s schedule. Gov. Michael J. Dunleavy was roundly critical of Walker’s state-led Alaska LNG Project plan during his campaign, but he has mostly been quiet about his plans for the project — particularly on the financing-partner side — since being elected. Regardless, Dunleavy’s administration is expected to continue the federal permitting effort, given FERC approval would be needed for any iteration of an LNG export project. A record of decision is also expected any day for AGDC’s smaller, in-state Alaska Standalone Pipeline, or ASAP, gas project from the U.S. Army Corps of Engineers. On the North Slope, a couple big projects are in the midst of EIS reviews as are a couple contentious federal land-use plans. The next step for the Nanushuk oil project, now led by Australian-based Oil Search Ltd., is also a record of decision after the Corps issued its final Nanushuk EIS Nov. 2. With the potential to produce upwards of 120,000 barrels per day the Nanushuk project is the largest oil prospect moving towards development in the state. Oil Search Alaska President Keiran Wulff said in November that the company plans to exercise a $450 million option to purchase additional Alaska assets from Armstrong Energy sometime next year. Oil Search bought an operator stake in the Nanushuk project from Armstrong for $400 million in a deal announced in late 2017. First production from the Nanushuk project in the Pikka Unit is scheduled for the end of 2023, according to Wulff. The Bureau of Land Management is in the early stages of drafting an EIS for ConocoPhillips’ $4 billion to $6 billion Willow oil project to the west of Nanushuk in the federal National Petroleum Reserve-Alaska. BLM issued a notice of intent for the EIS in August after the company submitted its “Master Development Plan” for Willow. ConocoPhillips estimates Willow could produce upwards of 100,000 barrels of oil per day at its peak; first oil is pegged for the mid-2020s. A timeline for the Willow EIS is not yet available; however, Deputy Interior Secretary David Bernhardt has issued a directive to Interior agencies including BLM to have environmental impact statements done within a year. BLM also kicked off the scoping period to begin revising the NPR-A Integrated Activity Plan Nov. 21, a move made with the intent of opening more of the reserve to oil and gas leasing and potential road development. The emergence of the Nanushuk geologic formation as a major oil target across the Slope since the last plan was written, as well as advances in drilling technology make it an appropriate time to rewrite the federal land-use plan, according to Assistant Interior Secretary Joe Balash. The most prospective Nanushuk area, according to the U.S. Geological Survey, is in the northeast portion of the NPR-A around Teshekpuk Lake that was made off-limits to oil and gas leasing in the 2013 plan. Balash said when scoping commenced that rewriting the NPR-A Integrated Activity Plan should take about a year or a little longer. The scoping period for the NPR-A plan is open through Jan. 7. To the east, BLM is busy — or will be when the government shutdown ends — working on the Arctic National Wildlife Refuge oil and gas lease sale EIS. The agency released a draft version of the two-volume, 756-page document Dec. 20 on the eve of the shutdown that started at midnight Dec. 21. The draft EIS offers three leasing scenarios with varying limitations on available acreage and activity timing intended to account for wildlife migrations and local subsistence activities. Each alternative would allow for at least 400,000 acres of the 1.5 million-acre ANWR coastal plain to be open for leasing over multiple lease sales Congress ordered be held before 2025. Interior officials have said they very much want to hold the first ANWR lease sale in late 2019, which would require a completed EIS. Public comments on the draft ANWR EIS are being accepted through Feb. 11. BLM has yet another EIS in the works for a project a ways down the Dalton Highway from the North Slope oil fields. The Alaska Industrial Development and Export Authority is leading development of a 211-mile industrial road to access the Ambler mining district, which stretches for about 75 miles along the southern flank of the Brooks Range in the upper Kobuk River drainage. BLM is writing the EIS for the road and the first draft of that document is expected in March 2019, with a final EIS following late next year, based on the current schedule. The $280 million to $380 million limited-access gravel road is seen as the first step towards developing multiple mines in the Ambler mining district, which holds more than 30 known metal deposits; but its remoteness has precluded significant development. Not coincidentally, Trilogy Metals Inc., which for years has been exploring the Ambler district, intends to initiate an EIS for its Arctic copper, zinc and precious metals prospect next year, too, according to CEO Rick Van Nieuwenhuyse. Finally, the long-anticipated draft EIS for the Pebble mine project is expected in January from the Army Corps of Engineers. Corps Pebble project manager Shane McCoy said in a November briefing on the work that the draft EIS will evaluate three development alternatives in addition to the requisite “no-action” option. However, because of the large scope of the project — infrastructure including 35 miles of roads, a subsea natural gas pipeline, a ferry across Iliamna Lake and a major port — the EIS will have multiple “sub-alternatives” for the mine’s support infrastructure, according to McCoy. The draft Pebble EIS will touch on, but not delve into, one of the primary concerns held by those who oppose the project, McCoy said. The Army Corps of Engineers is primarily tasked with adjudicating Pebble’s Clean Water Act Section 404 wetlands fill application — a construction permit. As such, evaluating the likelihood of and potential consequences from a mine waste release is not in the Corps’ purview. That is a job for state Dam Safety Program officials and Pebble hasn’t yet applied for its tailings dam permits. However, McCoy said the Corps conducted a cursory review of spill risks given it was a prominent topic in the comments the agency received during the scoping phase of the EIS. “We did convene folks together for a very high-level spill risk scenarios that included the folks from Pebble, the folks from the state as well as AECOM’s specialists, but it’s at a much higher level than what would be required for an actual dam permit,” he said. AECOM is the third-party contractor tasked with compiling the EIS data for the project. A final Pebble EIS is tentatively scheduled for December of next year. Additionally, Pebble Limited Partnership spokesman Mike Heatwole said conducting a preliminary economic assessment for the project is on the company’s “to-do list” but it’s not a pressing matter at this point. Pebble’s opponents have long questioned the economic viability of the mine, particularly the smaller mine plan the company is currently advancing. Pebble CEO Tom Collier told the Journal in April that he wanted to have an economic analysis of the project published sometime in 2018. Attempting to permit a large mine before conducting multiple reviews of its economics is a departure from typical mine development processes. Corps officials have said they would like Pebble to provide them economic information for inclusion in the final EIS, but Heatwole contended it is not a requirement for completing the document.   Elwood Brehmer can be reached at [email protected]

Year in Review: Donlin, WOTUS, Ambler and Fort Knox

In August, after nearly 25 years of work, Donlin Gold LLC got one thing every major project developer in the country desires: a favorable record of decision from the federal government. In this instance, it came as a first-of-its-kind joint ROD issued by the U.S. Army Corps of Engineers for the environmental impact statement and by the Bureau of Land Management for the project’s natural gas pipeline right-of-way authorization across federal land. Donlin’s final EIS was published in April; the Corps of Engineers recommended the company’s preferred project plan for approval in its ROD. Later in August the Alaska Department of Fish and Game approved a slew of Title 16 permits for development activity in salmon habitat. Donlin Gold was also one of the primary players in the successful effort to defeat Ballot Measure 1, which would have greatly increased the state’s requirements for obtaining a Title 16 permit and would have seriously challenged development of the mine, especially under its current plan. As envisioned, Donlin would be one of the world’s largest open-pit gold mines, extracting about 33 million ounces of gold over an initial 27-year life. The company is open to partnerships to help build out much of its support infrastructure — including 30 miles of road, ports and a 315-mile gas pipeline from west Cook Inlet to the Kuskokwim River mine site — which could help mitigate some of the high fixed costs the project faces, according to spokesman Kurt Parkan. A 50-50 joint venture between Canadian companies Barrick Gold Corp., the world’s largest gold producer, and NovaGold, Donlin Gold LLC has spent roughly $500 million exploring and permitting the open-pit gold project over nearly 25 years, Parkan said to the Alaska Miners Association in November. Still, that money is not factored into the $6.7 billion estimated construction cost calculated during a 2011 economic study of the project. Parkan said in an interview that the seven-year-old figure is what the company continues to work from; the focus now is on bringing it down. As a result, Donlin’s owners are resistant to putting a definitive timeline on the project, according to Parkan. While Donlin has its federal Clean Water Act Section 404 wetlands permit, the BLM right-of-way and a special permit from the Pipeline and Hazardous Materials Safety Administration, it still needs state approvals that will take several more years to acquire. 2. WOTUS revamped President Donald Trump administration took a big step towards limiting which waters and wetlands the federal government has authority over Dec. 11 when a new, draft version of the waters of the U.S. rule was released. The move is the final step in the Trump administration’s nearly two-year effort to replace an Obama-era version of the rule, oft referred to as WOTUS, finalized in 2015 but challenged in court by 12 states including Alaska. Acting Environmental Protection Agency Administrator Andrew Wheeler and Assistant Secretary of the Army R.D. James signed the proposed rule Dec. 11. The Corps of Engineers adjudicates applications for development permits in navigable waterways across the country on behalf of the EPA. The EPA has the final say over regulating development in and around navigable waters through is Clean Water Act authority. The new WOTUS rule covers traditional, large navigable waters and their tributaries that contribute year-round or intermittent flow and wetlands adjacent to other jurisdictional waters. It focuses on wetlands and other areas with surface water connections as falling under federal jurisdiction. The 2015 rule had a broader scope, including areas with subsurface water flow. Development in waters that fall under the Clean Water Act typically require some sort of mitigation or offset to the impacts of the activity, which development proponents often lament as being very costly. The members of Alaska’s congressional delegation welcomed the announcement in statements from their offices. In February 2017 President Donald Trump issued an executive order titled, “Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the ‘Waters of the United States’ Rule.” That order led to a lengthy public process to repeal the 2015 rule, which concluded earlier this year. The rule had been suspended from taking effect by the 6th Circuit Court of Appeals in Alaska and the other mostly western states that sued to stop it in 2015. 3. Ambler cost drops; permitting on horizon as road advances Early in the year Trilogy Metals CEO Rick Van Nieuwenhuyse said the overall cost to build and operate the company’s proposed copper, zinc and precious metal mine in the Ambler mining district was coming down. By the end of the year Van Nieuwenhuyse was saying the company plans to start permitting the mine in the first half of 2019. The pre-feasibility study for Trilogy’s Arctic deposit was released Feb. 20 with a development cost of $780 million, up about 9 percent from a 2013 estimate. However, a 60 percent drop in expected annual operating and 20 percent decrease in closure and reclamation costs — to about $65 million each — cut the all-in cost for the initial 12-year mine by 5.5 percent from $964 million in 2013 to $911 million today. Trilogy executives said during a call with investors that the drastic drop in operating costs is due to changes in the plan for waste rock and tailings management, fuel and federal tax reform. The Alaska Industrial Development and Export Authority is leading development of a 211-mile industrial road to access the mining district. The Bureau of Land Management is writing a separate EIS for the road and the first draft of that document is expected in March 2019, with a final EIS following late next year, based on the current schedule. The National Park Service is also preparing an environmental and economic analysis that is also expected to be finished next spring. At its core, the Arctic prospect is about as good as undeveloped metal deposits come these days, according to Van Nieuwenhuyse. With just more than 43 million metric tons of probable reserves averaging 2.3 percent copper, 3.2 percent zinc and smaller amounts of lead, gold and silver, it’s “about 10 times the average grade being mined in open pit copper mines today,” he said in October. The Clean Water Act Section 404 wetlands fill permit from the Corps — large enough to trigger an EIS — is likely the only federal permit the mine will need, according to Van Nieuwenhuyse, noting the Environmental Protection Agency has oversight of the water and air quality permits issued by the State of Alaska. 4. Fort Knox expands Interior business interests got welcome news in June when they heard one of the largest employers in the region should be open for 10 years longer than originally planned. Kinross Gold Corp. announced June 12 that it has decided to move forward with a $100 million expansion to the Fort Knox gold mine about 25 miles northeast of Fairbanks. A feasibility the Toronto-based Kinross conducted on the prospect, known as the Gilmore project, indicates it could yield 1.5 million ounces of gold and initially extend operations at Fort Knox to 2030. Milling at the mine is expected to stop in late 2020 without it, according to Kinross. Now, mining is expected to continue into 2027 with ore processing running to 2030. The mine opened in 1996. Gilmore also increased the proven and probable gold reserves at Fort Knox by 2.1 million ounces to 3.4 million ounces overall, according to a company statement.] CEO J. Paul Robinson said the company will likely be able to fund the $100 million expansion with Fort Knox’s existing cash flow, which will help Kinross maintain financial flexibility. Fort Knox is on land owned by the state Alaska Mental Health Trust Authority; the expansion, known as the Gilmore project, is on a recently acquired 709-acre parcel of state land just to the west of the existing mine pit that was previously held by the federal National Oceanic and Atmospheric Administration. First gold from the Gilmore project is expected in early 2020.

British Columbia seeks bids to remidate Tulsequah Chief mine

British Columbia mining regulators have taken the first step toward paying to clean up an abandoned mine that has been leaking acid runoff into Alaska waters for decades. The British Columbia Ministry of Energy, Mines and Petroleum Resources issued a request for proposals Nov. 6 soliciting bids to remediate the Tulsequah Chief mine located in the Taku River drainage about 10 miles upstream from the Alaska-British Columbia border. State officials contend the multi-metal mine that operated for just six years has been leaking acid wastewater into the Tulsequah River, which feeds the Taku, since it was closed in 1957. The Taku River empties into the Pacific near Juneau and is one of the largest salmon-bearing rivers in Southeast Alaska. The Alaska congressional delegation and Gov. Bill Walker’s administration have stepped up their demands for provincial officials to address the situation in recent years — largely at the behest of Southeast commercial fishing and Native groups — after the mine’s latest owners, Toronto-based Chieftain Metals Ltd., began bankruptcy proceedings in 2016. Sen. Dan Sullivan and former Lt. Gov. Byron Mallott traveled to Ottawa to meet with Canadian officials in February to discuss their environmental and fishery concerns about government oversight of mining activity within transboundary watersheds in the province that flow into Alaska. A burst of mining activity in the remote northern region of the province has led to numerous new mines and mine proposals in transboundary watersheds. At the same time, the Energy, Mines and Petroleum Ministry has come under scrutiny for its regulatory requirements of mines after a British Columbia auditor general report concluded the 2014 Mount Polley mine tailings dam breach was the result of inadequate engineering. The Mount Polley copper and gold mine is in the upper reaches of the large Fraser River watershed. Alaska officials have also requested their provincial counterparts assist in conducting baseline environmental studies in the lower reaches of transboundary watersheds to monitor things such as water quality in advance of upstream mine development. Sullivan said in a Nov. 19 statement from his office that he is encouraged the provincial government has finally taken a more active role in cleaning up the troubled and abandoned mine. “The announcement that the government intends to move forward and develop a remediation plan is a step in the right direction. As voices on both sides of the border have been asking for years, it’s time for the B.C. government, the state of Alaska, Alaska Native and First Nations communities to work together to remove this and other looming threats over our rivers, fisheries, communities’ health and wellbeing,” Sullivan said. Gov. Walker wrote to British Columbia Premier John Horgan Oct. 31 thanking him for the work the state and province have done on transboundary issues but reiterated an ongoing worry about whether the financial assurances the province requires of mining companies are adequate to protect such rivers. “These concerns arise, in significant part, because statutory decision-makers in British Columbia may accept less than full security based on a company’s financial strength, and the public has less access to the data and analyses used to set the amount of financial assurances in British Columbia,” Walker wrote. He continued to stress that the decades-old problems with the Tulsequah Chief mine do not inspire confidence in the province’s oversight of its mines. “As long as contaminants from the site continue to drain into the Tulsequah River and downstream to the Taku River, people on our side of the border will worry about the health of the fish and other marine life in Alaska that depend on the quality of these waters,” Walker wrote. “Alaskans will also continue to question the ability of Canada and the province to assure mineral development is done without sacrificing environmental values.” Chris Zimmer, an Alaska director for the Juneau-based transboundary watershed conservation advocacy group Rivers Without Borders said Nov. 13 that since two companies have gone bankrupt after attempting to re-open the mine, “Permanent mine closure with full reclamation would be the best and most cost-effective solution to the Tulsequah Chief issue and we urge the B.C. government to adopt such a plan, as opposed to partial interim measures such as on-site water treatment.” Chieftain Metals acquired the underground mine in 2010 with plans to re-open it. The company installed a water treatment plant to resolve the acid drainage problem in 2011 but the plant was shut down in June 2012 after just nine months because it did not perform up to expectations. Chieftain stopped permitting efforts to resume mining in 2015, according to provincial regulators. Proposals to clean up Tulsequah Chief are due by Dec. 13. It’s unclear how much the effort will cost.

Donlin Gold notches wins in 2018, but still far from finish line

This has been a big year for those behind the Donlin Gold project. They received a favorable record of decision from the U.S. Army Corps of Engineers and the Bureau of Land Management Aug. 13 — a first-of-its-kind joint decision for the project’s environmental impact statement and right-of-way approval for a natural gas pipeline across federal lands. Later that month the Alaska Department of Fish and Game approved a slew of Title 16 permits for development activity in salmon habitat. Donlin Gold was also one of the primary players in the successful effort to defeat Ballot Measure 1, which would have greatly increased the state’s requirements for obtaining a Title 16 permit and would have seriously challenged development of the mine, especially under its current plan. However, there are still many unknowns surrounding the development and plenty left to do, according to Donlin Gold spokesman Kurt Parkan. A 50-50 joint venture between Canadian companies Barrick Gold Corp., the world’s largest gold producer, and NovaGold, Donlin Gold LLC has spent roughly $500 million exploring and permitting the open-pit gold project over nearly 25 years, Parkan told a gathering at the Alaska Miners Association conference Nov. 8. Still, that money is not factored into the $6.7 billion estimated construction cost calculated during a 2011 economic study of the project. Parkan said in an interview that the seven-year-old figure is what the company continues to work from; the focus now is on bringing it down. As a result, Donlin’s owners are resistant to putting a definitive timeline on the project, according to Parkan. And the price of gold plays a big role in that, too. It’s safe to say, however, that current prices of about $1,200 per ounce will not suffice. “They hesitate to really reveal what they feel is the trigger point because if we hit it that still may not be the time to pull the trigger,” he said while emphasizing the company is focused on the process of the project and letting extraneous factors settle themselves. “It’s not going anywhere. The price of gold is going to go up, it’s just a matter of when and how much,” Parkan added. “This project will be developed at some point.” As envisioned, Donlin would be one of the world’s largest open-pit gold mines, extracting about 33 million ounces of gold over an initial 27-year life.The company is open to partnerships to help build out much of its support infrastructure, which could help mitigate some of the high fixed costs the project faces, he said. “If somebody wants to finance the pipeline, we’ll buy the gas. If somebody wants to build the power plant, we’ll buy the power,” Parkan said. The 14-inch, 315-mile natural gas pipeline the company plans to build from Cook Inlet to provide feedstock for the 220-megawatt power plant at the Southwest Alaska mine site has been estimated to cost about $1 billion. Additionally, the project will require about 30 miles of new roads and two new ports. Parkan also noted that technical changes might need to be made to the current design in order to secure the remaining necessary permits, which could add cost as well. While Donlin has its federal Clean Water Act Section 404 wetlands permit, the BLM right-of-way and a special permit from the Pipeline and Hazardous Materials Safety Administration, it still needs state approvals that will take several more years to acquire. Parkan said Donlin is waiting on for rulings on its reclamation and closure plan and integrated waste management permit yet this year; the public comment periods for both are closed. In the coming years the company will look to get its pipeline right-of-way and other land authorizations from the State of Alaska as well as its water rights and dam safety permits. The tailings dam safety permit will require additional field seasons for geotechnical drilling, he said. All that work means the project is still a long ways from completion; the mine and associated infrastructure will take another three to four years to build whenever the last of the preconstruction work is wrapped up. Elwood Brehmer can be reached at [email protected]

Sullivan: deregulation will be a relief to Alaska economy

U.S. Sen. Dan Sullivan continues his push to purvey positivity to Alaskans, which he says is largely a result of federal policy changes over the past two years. He acknowledged Alaska is still facing the challenges of a lingering recession— possibly coming out of it this year — crime and substance abuse during an Election Day speech at the Alaska Miners Association convention, but stressed there are positives on the horizon for the economy. “There’s a lot of things where I think, just around the corner, if we make good choices today, to be blunt and continue the trajectory on, I think we’re looking at the possibility of a real jobs and economic boom coming to our state,” Sullivan said. He contended the corporate tax cuts Congress passed last December have helped U.S. businesses be more competitive and make job-creating investments. A point he makes regularly, Sullivan noted the second and third quarter GDP growth of 4.2 percent and 3.5 percent, respectively, which he said simply didn’t occur after the Great Recession during the Obama administration. “What really made this country great was consistent 3.5, 4 percent, 5 percent, 6 percent GDP growth, which was normal — Democrat, Republican, doesn’t matter — that’s what we used to do for 200 years,” Sullivan stressed. The job creation that has driven national unemployment as low as it’s been in 50 years, according to Sullivan, at 3.7 percent in September should be headed to Alaska, he said. To the crowd of miners he specifically discussed his efforts and those of Congress in concert with the Trump administration to roll back environmental regulations that he says were often intended to stymie resource industries. Sullivan cited the repeal of the Army Corps of Engineers 2015 wetlands jurisdiction update known as the Waters of the U.S., or WOTUS, rule. Proponents argued it simply clarified what waters the Corps of Engineers and the Environmental Protection Agency have jurisdictional authority over. Republicans and some Democrats said it would have drastically increased the scope of the agencies’ authority and would have led to Clean Water Act permits for development and agriculture in many places they are currently aren’t required. The Republican majority in Congress has used the Congressional Review Act to block or rescind primarily environmental regulations from the Obama administration 16 times in the past two years, according to Sullivan. He recalled a phone conversation he had with President Donald Trump early in his presidency in which Sullivan outlined his Regulations Endanger Democracy, or RED Tape Act, legislation that would require federal agencies to repeal an old regulation each time another is promulgated. “(Trump) said, ‘You know, one in, one out, I’m actually more interested in one in, two out,’” Sullivan said of the call. “And if you actually look at what (the administration) has done, I think they’re actually around one in, nine out.” He highlighted that the administration has also incorporated portions of his Rebuild America Now Act — legislation to reform the landmark 1969 National Environmental Policy Act that established the comprehensive environmental impact statement review for large development projects — into its executive actions. His bill, which he said he will be pushing again in the next Congress, would put one agency in charge and place a “two-year shot clock” on NEPA project reviews, according to Sullivan. Deputy Interior Secretary David Bernhardt said during a trip to Alaska in March that he handed down a directive for Interior agency staff to limit EIS reviews to one-year. Partially as a result of that, BLM is expected to hold an oil and gas lease sale for the Arctic National Wildlife Refuge coastal plain sometime in 2019, Sullivan added. “This isn’t cutting corners; this isn’t trying to pollute the environment. This is just common sense,” he said. “All of these things are completely common sense. If you look at the things other industrialized democracies — Canada, Australia — do permitting mines. These are what they do; things we need to do.” In other forums Sullivan has been questioned Canadian environmental standards related to mining. He has urged British Columbia officials review the province’s environmental requirements for mines, particularly as they relate to active or potential mines in the several large salmon-bearing rivers that flow from the province and through Southeast Alaska. An issue that is starting gain bipartisan traction in Congress, according to Sullivan, is that of China’s dominance in the rare earth metals sector, and what can be done to reverse the trend. China is the primary producer of rare earth elements used in technological devices and by the Department of Defense in advanced weapons systems. “It just makes sense” to produce such critical minerals in the U.S., he said. The 2019 National Defense Authorization Act passed last summer includes provisions discouraging the Defense Department from purchasing products or devices containing rare earths sourced from a short list of countries including China. Finally, Sullivan said before votes were tallied that he does not usually comment on state policy initiatives, but emphasized how large of a threat he feels Ballot Measure 1, the anadromous fish habitat initiative is to development in Alaska. “We have challenges, but I am so optimistic about the future, assuming that Ballot Measure 1 gets defeated today,” he said. The measure was defeated soundly by a nearly 2-1 margin. Elwood Brehmer can be reached at [email protected]

Mining exploration on the rebound at new, old prospects

A recent resurgence in oil exploration in Alaska has been a topic of much discussion for the potential revenue it could eventually generate for state coffers, but there is ample exploration activity in the state’s mining sector as well. At existing mines, Teck Resources Ltd., which operates the Red Dog zinc mine near Kotzebue in Northwest Alaska, has been exploring the Aktigiruq prospect about seven miles north of the mine facilities. Teck CEO Don Lindsay has said it could end up being “one of the best undeveloped zinc deposits in the world” if initial drilling results are proven up. Red Dog is already one of the largest zinc-producing mines on Earth. Earlier this year Kinross Gold Corp. announced it would start work on a $100 million expansion to the Fort Knox gold mine just northeast of Fairbanks that is expected to keep the mine open for another 10 years through 2030. The Gilmore project, as it is known, could yield up to another 1.5 million ounces of gold for the open-pit mine that opened in 1996, according to a feasibility study Kinross conducted on the prospect. Production from Gilmore could start in early 2020, the company estimates. Geologist Bonnie Broman told a gathering at the Alaska Miners Association in Anchorage Nov. 6 that the newly formed private Alaska exploration firm Valhalla Metals Inc. has acquired 230 mining claims covering 36,000 acres in the Ambler mining district farther north of Fairbanks and west of the Dalton Highway. Valhalla’s claims include the Sun copper and zinc prospect that the company plans to advance in the coming years. The easternmost deposit in the Ambler district, the Sun prospect was first discovered in 1974 by Sunshine Mining Co. and has changed hands frequently since. Valhalla is the 10th company to control the claims since Sunshine made the initial discovery, according to Broman. The Sun prospect was regularly drilled in the years immediately following its discovery, but the work mostly stopped in the 1980s and 1990s following the passage of the Alaska National Interest Lands Conservation Act in 1980, as did much of the mining exploration activity going on in the state at the time, Broman said. The area was most recently explored from 2007-12 by Canadian Andover Mining Corp., which went bankrupt in 2014. Overall, more than 19,100 meters of drilling has been done at Sun since it was first discovered. “This area has had quite a bit of work done to-date. There’s quite a lot of known prospectivity in the region,” Broman said. The Sun deposit sits east of the Arctic and Bornite multi-metal prospects currently being advanced by Trilogy Metals. Trilogy plans to begin permitting Arctic early next year but development of the remote Ambler prospects is dependent upon construction of the roughly 211-mile Ambler industrial access road. The Alaska Industrial Development and Export Authority is leading development of the industrial road to access the mining district. The Bureau of Land Management is in the midst of writing an environmental impact statement for the road and the first draft of that document is expected in March 2019, with a final EIS following late next year, based on the current schedule. AIDEA officials believe the access the road would provide could spark further exploration activity in the region, as well. Specifically to Sun, Broman said mineralization has been intersected over a 3.5 kilometer strike. So far it’s estimated the deposit holds 10.7 million metric tonnes of indicated and inferred resources of 4.2 percent zinc, 1.5 percent copper and 1.4 percent lead. It also has prospectivity for silver and small amounts of gold, she added. Broman said unlike the Arctic and Bornite prospects, Sun would likely be an underground mine and it’s not uncommon for mineralization in similar sulfide deposits to continue to depths of 1,000 meters. “There is potential to add resources at Sun by drilling the down dip portion,” she said, as it has not been explored at depth. Valhalla expects to continue exploration drilling at Sun in the coming years and will also be looking for new deposits elsewhere in its claims area, she said. Icy Cape progress Along Alaska’s south coast the Alaska Mental Health Trust Land Office continues to advance its unique heavy industrial minerals prospect in the beach sediments of Icy Cape. About 75 miles northwest of Yakutat, the roughly 30-mile long, 50,000-acre Mental Health Trust property is approximately half covered by sediments containing heavy industrial minerals, according to Trust Land Office Minerals and Energy Chief Karsten Eden. The Trust Land Office manages roughly 1 million acres of land across Alaska for real estate and resource development purposes, the proceeds of which go to fund the Alaska Mental Health Trust Authority’s work to benefit Alaskans with mental health and addiction challenges. “It’s a totally different kind of geology and it’s a totally different kind of exploration, but it’s exciting,” Eden said during a presentation at the AMA convention Nov. 6. The eastern portion of the large property contains sediments from the glaciers of Icy Bay, while the river deposits on the coastal plain influence the area to the west. All of the sediments contain heavy minerals, according to Eden. The heavy minerals are often used in industrial applications in which hard, abrasive materials are required, such as sandpaper and sandblasting. The sediments also contain ilmenite, which is highly magnetic and is a common industrial mineral often used as white pigment feedstock in paints and plastics, he said. The Trust Land Office has been investigating the prospect for four years; drilling started in 2017 and continued last summer. During the 2018 work season the TLO spent roughly $3 million, had a crew of 24 working at the Icy Cape camp and built a 60-foot by 40-foot sample processing facility — a shed — to further evaluate the drilling samples. Eden said the office has had to use sonic drilling to bore through the sediments. “The drilling conditions are really challenging. Those are abrasive sands,” he commented. The multiple sources mean the sediments are separated into two distinct layers, which provide different mineral grain sizes, an important benefit to the project, according to Eden. “Particle size is very important because it has an impact on recovery,” he said. “Out there we have mineable and recoverable particle sizes including platinum group minerals. It’s a poly-mineralic and poly-metallic deposit. It’s very, very interesting. If developed, the Trust property would be the only source for some heavy minerals such as garnets on the West Coast, Land Office officials have said. There is currently a global shortage of garnets, another abrasive, as India, the world’s longtime primary supplier has stopped exporting mineral sands altogether in an effort to halt illegal private exports, Eden added. The Trust Land Office plans to continue exploring the area in the coming years, he said. Elwood Brehmer can be reached at [email protected]

Permitting to start on Ambler copper prospect early next year

More than 60 years after it was initially prospected, Trilogy Metals is almost ready to apply for the major environmental permits it will need for the first project in one of Alaska’s premier areas with mining potential. Trilogy Metals Inc. CEO Rick Van Nieuwenhuyse said Oct. 4 that the company has started pre-permitting work with the U.S. Army Corps of Engineers for its Arctic copper, zinc and precious metals prospect in advance of an environmental impact statement that should be initiated in the first half of 2019. The Clean Water Act Section 404 wetlands fill permit from the Corps — large enough to trigger an EIS — is likely the only federal permit the mine will need, Van Nieuwenhuyse said, noting the Environmental Protection Agency has oversight of the water and air quality permits issued by the State of Alaska. The Arctic prospect is roughly in the middle of the extensive Ambler mining district. Stretching for about 75 miles along the southern flank of the Brooks Range, there are more than 30 known metal deposits in the district, but its remoteness has precluded significant development. The Alaska Industrial Development and Export Authority is leading development of a 211-mile industrial road to access the mining district. The Bureau of Land Management is writing a separate EIS for the road and the first draft of that document is expected in March 2019, with a final EIS following late next year, based on the current schedule. “This project is in the middle of nowhere and this road has been studied, discussed, many, many, many times,” Van Nieuwenhuyse said. The road project, which is separate from Trilogy’s mine work, has drawn stiff opposition from residents of the area and environmental groups who are worried the project will disrupt caribou migrations, which Van Nieuwenhuyse acknowledges is the most significant subsistence food source in the region. The proposed mines have also drawn scrutiny for potential impacts to salmon and whitefish runs in the Kobuk River drainage. The National Park Service is also preparing an environmental and economic analysis that is also expected to be finished next spring. AIDEA estimates constructing the most basic single-lane gravel road would cost between $305 and $346 million. It would be financed by the authority with bonds that would be paid back through tolls paid by Trilogy Metals and any other companies that would develop one of the other prospects in the Ambler mining district. The plan is very similar to the Red Dog mine-DeLong Mountain Transportation System — also an AIDEA-owned and financed mine access road —in far Northwest Alaska that development proponents have cited as a model for other isolated resource prospects in the road-scarce state. At its core, the Arctic prospect is about as good as undeveloped metal deposits come these days, according to Van Nieuwenhuyse. With just more than 43 million metric tons of probable reserves averaging 2.3 percent copper, 3.2 percent zinc and smaller amounts of lead, gold and silver, it’s “about 10 times the average grade being mined in open pit copper mines today,” he said. “It’s not a huge mine, but it produces metal above its weight class because of the grade — 160 million pounds of copper annually, 200 million pounds of zinc, 33 million pounds of lead, over 3 million ounces of silver and 30,000 ounces of gold.” Those numbers are based on a short, 12-year mine life. According a pre-feasibility study released in February, Arctic would generate costs of $911 million to build and operate over that time but with roughly $450 million in annual free cash flow would have just a 2-year payback. “We don’t need higher metal prices to make this thing work,” Van Nieuwenhuyse said. “We just need a road.” The mill and other facilities at Arctic could also be used for Trilogy’s other, larger but less explored Bornite copper and cobalt prospect about 20 miles to the southwest or other undeveloped prospects in the area, he added. The company currently estimates Bornite contains upwards of 6 billion pounds of copper, a figure that could grow this coming winter when the results from this year’s drilling campaign. The last two years of exploration at Bornite have been funded by $10 million annual payments from the Australian mining company South 32, which, after a third payment, will have the option of investing another $150 million in the project and forming a 50-50 joint venture with Trilogy, according to Van Nieuwenhuyse. Trilogy has spent $122 million exploring its Alaska prospects overall. The company also has a partnership with NANA Regional Corp., the Northwest Alaska Native regional corporation, which owns land at Bornite. NANA can receive up to a 2.5 percent royalty on the ore concentrates produced from Trilogy’s mines under the partnership, according to a company presentation. Another open-pit prospect, Bornite holds about 125 million metric tons of reserves with about 1 percent copper, but there is potential for an underground mine with 58 million tons of 3 percent copper, he noted. Bornite was also discovered in the 1950s by a prospector well known in mining circles named Riney Berg, according to Van Nieuwenhuyse, who offered a brief anecdote about his work. “He was out there looking for uranium; he had worked at the Kennecott mine so he knew what copper minerals looked like, found some on the surface, did some trenching and got the Kennecott guys all excited. They eventually wrote him a check for $6 million,” he said, noting the value of that much money roughly 60 years ago. “Riney, being a good prospector, spent it all on prospecting. There’s probably a dozen different prospects in Northern Alaska that have his name on it.” Trilogy is also finishing up an study to see if ore sorting systems used by recycling companies can be applied in mining Arctic. The process uses sensors similar to magnetic resonance technology that “recognize what rocks have copper, silver, lead and what rocks don’t,” Van Nieuwenhuyse said. “If we could just mine the stuff we want we could get 3 percent copper, not 2 percent,” he said. The sorting process is proven to work, it’s just not proven to be economic yet, he added. Elwood Brehmer can be reached at [email protected]

Pebble permit scoping report first step toward EIS

The summary released Aug. 31 by the U.S. Army Corps of Engineers of the topics the public wants studied in the lead up to a permitting decision for the proposed Pebble mine was met with criticism from groups who feel the mine review is being fast-tracked. The comments that make up the scoping report are, as the name implies, intended to guide the scope of analysis in the environmental impact statement, or EIS, the Corps is in the midst of drafting for the large mine project. Not meant to be a referendum on the controversial mine plan, the Corps received 174,889 comments during the 90-day scoping period that ran until June 29, according to the report. The Corps extended the original 30-day comment period shortly after it opened April 1 following requests to do so from Sen. Lisa Murkowski and Gov. Bill Walker’s administration, who suggested the month-long comment period could be insufficient given the scale and complexity of the project. Public meetings were also held in nine communities during scoping, but mine opponents contended more should have been held in the numerous remote villages and small towns across the Bristol Bay region that have the potential to be impacted by the project. Much more than a large surface mine, the Pebble project would stretch over 187 miles from the start of a natural gas pipeline near Anchor Point on the Kenai Peninsula, across Cook Inlet to a new port that would be built near Amakdedori on the west side of the Inlet. From there, the transportation corridor would include 53 miles of new road plus a ferry across massive Iliamna Lake that would lead to the mine itself. “The input we received is insightful and helpful, informing our analysis and potential alternatives to be included in the draft EIS,” Corps Project Manager Shane McCoy said in a prepared statement. Though the Corps received nearly 175,000 submissions during scoping, just 3,653 were considered individual comments, with the remaining roughly 171,000 being various form letters, according to the report. More than one-third of the non-form comments focused on the potential socioeconomic impacts of the project; the rest were split roughly evenly between suggestions and concerns regarding the National Environmental Policy Act process, the proposed tailings dam facility and prospective project impacts to fish and wildlife. More than half of the form letters focused on the NEPA process. Groups opposing the project were critical of the 37-page scoping report, alleging it glosses over many important issues that need review in the EIS. United Tribes of Bristol Bay, Commercial Fishermen For Bristol Bay and Trout Unlimited Alaska all called for state and federal leaders, particularly Murkowski, to pressure the Corps to slow or stop the EIS until a more thorough review of the project’s potential impacts is done. Trout Unlimited Alaska stated in a press release responding to the publication of the report that more than 400,000 comments were submitted that raise concerns about Pebble’s permit application. Pebble Limited Partnership spokesman Mike Heatwole said simply via email that the company will continue to work closely with the Corps to help the complete the draft EIS in a timely manner. The totality of the Corps’ review is unclear at this point given the draft EIS has not yet been published, but the aggressive schedule set for the Pebble EIS has also been a point of contention. Pebble Limited Partnership submitted its project plan to the Corps for review in late December 2017 and Corps officials plan to have a draft EIS finished in January 2019, or between six and seven months after the scoping period closed. Comparatively, it took the agency nearly three years to draft the first version of the EIS for the Donlin Gold mine permit application, a large surface mine proposal with extensive support infrastructure similar to Pebble. Corps regulatory officials insist they are applying best practices learned during the Donlin review to the Pebble EIS, allowing them to speed up the process while performing the same level of analysis. Aside from expected comments highlighting the economic opportunities the project could provide to a region with few year-round jobs and the potential harm a tailings dam failure could have on salmon habitat downstream of the mine, many commenters stressed the need to study possible impacts to subsistence activities not only in the Bristol Bay area but also near the gas pipeline origin on the Kenai Peninsula. Some noted the mine could reduce out-migration from the region, helping to maintain enrollment in small schools in the area, while others contended the mine — with a 20-year initial life — would simply create a greater boom-and-bust economic cycle that would end with lost jobs when the mine closed. Suggestions were made to require an economic assessment of the project be conducted to determine if Pebble Limited Partnership’s plan is financially viable. Pebble CEO Tom Collier said in an April interview with the Journal that the company plans to release a preliminary economic assessment of its latest project plan by the end of the year. Heatwole said in a Sept. 4 email that he had no further information to provide about the status of the economic report. Elwood Brehmer can be reached at [email protected]

Pages

Subscribe to RSS - Mining