9/20/2016. Primary Factors for Successful Redevelopment. First Case Study: The CR Kendall Mine CR Kendall Mine Undergoing Reclamation

Transcription

1 Primary Factors for Successful Redevelopment Key Factors for Successful Mining Redevelopment Global Mining Law Center Brownfields Mine Development Symposium Impediments to Mining September 16, 016 By Carolyn McIntosh Squire Patton Boggs (US) LLP Valuable Resource Presence Mining Company Strength Leadership Vision Skilled community engagement Fiscal capability Continuity Commitment Regulatory Environment Land Use Constraints Environmental Issues Community Attitude First Case Study: The CR Kendall Mine CR Kendall Mine Undergoing Reclamation Gold Mine Initially operated from 1880 until 194 Redevelopment started in 1981 Several owners 199: A River Runs Through It 1995: BLM land exchange 1998: MT adopts cyanide ban CR Kendall existing operations grandfathered 3 4 1

2 CR Kendall Reclaimed Process Pad CR Kendall Factor Analysis Factor Number & Description CR Kendall MDEQ took > years for closure EIS Company cancelled EIS process due to delay Submitted application for final reclamation and closure MDEQ took > years for that evaluation also Closure by custodial trust 1 Valuable Resource Yes-Gold Mining Company Strength Leadership Vision Community Engagement Fiscal Capability - Continuity Commitment 3 Regulatory Environment Negative 4 Land Use Constraints None specifically 5 Environmental Issues Cyanide Ban July 015 photograph of Process Pad 4 (foreground) and Process Pad 3 (background) 6 Community Attitude Negative 5 TOTAL POINTS Positive: 3 Negative: 3 6 Second Case Study: Robinson Nevada Mining Company The Robinson Resource Copper discovered in 1857 Operated from Cu: 4 B lbs.; Au:.7 MM oz. Owners: Guggenheims, Kennecott, BHP, KGHM Redevelopment started 1994 Located on US 50: The Loneliest Highway in America 1996 Consent Decree New crusher & flotation 015 production CU: 57k tons; Au: 56,700 oz.; Mo Robinson Winter 009 Haul Road into the Pit 7 8

3 Robinson Redevelopment Robinson Factor Analysis Factor Number & Description Robinson 1 Valuable Resource Yes-Copper, Gold, Silver, Molybdenum Mining Company Strength Leadership Vision Community Engagement Fiscal Capability + Continuity Commitment + 3 Regulatory Environment Positive 4 Land Use Constraints NEPA review required 5 Environmental Issues Historic Releases 6 Community Attitude Positive Cuprite and Malachite 9 TOTAL POINTS Positive: 4.5 Negative: Third Case Study: Comstock Mining North Comstock Lode Shafts 1850 Gold discovered 1859 Comstock Lode discovery 1st major US silver deposit; 1859 silver rush From Comstock produced $30,000,000: Ag 56% & Au 44% Mine process innovations Historic use of Hg = Superfund Area is in 3 historic districts 010 Redevelopment

4 South Comstock Lode Shafts The Bullion Mine, Virginia City, NV The View from Gold Hill in 186 Comstock History & Innovation

5 The Redevelopment Opportunity Comstock Mine Moving Underground Dayton Exploration Holes New Harris Portal Three Historic District Boundaries Land Use Constraints Vista Preservation?

6 Comstock Foundation Story Board Comstock Mining Factor Analysis Factor Number & Description Comstock 1 Valuable Resource Yes-Gold, Silver Mining Company Strength Leadership + Vision + Community Engagement + Fiscal Capability Continuity Commitment + 3 Regulatory Environment Mixed, Negative 4 Land Use Constraints BLM, NHPA 5 Environmental Issues Superfund Site 6 Community Attitude Negative TOTAL POINTS Positive:.5 Negative: 4 Comstock Era Ore Cart Retrieved from Billy the Kid Pit 1 Conclusions Valuable Resource Early project assessment Gather resource data Evaluate environmental sensitivities Gauge regulatory environment & community attitude Mining Company Strength Can overcome unfavorable factors Leadership Vision Creative Approaches Community Engagement Incorporate an integral strategy Educate Get ahead of negative perceptions Develop Trust Sustained dedication 3 6