History of the Crandon Mine Project and Implications of Lessons Learned

Transcription

1 History of the Crandon Mine Project and Implications of Lessons Learned Larry Lynch, P.G., Hydrogeologist -Wisconsin DNR SME Wisconsin Annual Conference Partnering for Sustainable Mining: Hard Rock and Soft Rock Mining in Minnesota and Wisconsin Eau Claire, Wisconsin October 8, 2014

2 Project Background Crandon Project A large proposed underground Zinc-Copper mining project in northeast Wisconsin Two failed attempts at permitting What Happened? What Can be Learned?

3 Project Location

4 Project Area

5 Discovery and Early Activity Discovered in 1975 through aeromagnetic surveys and exploratory drilling by Exxon Minerals Company Concurrent legislative activity due to increased exploration in state and Flambeau Mine permitting experiences Chs. 421 (Regulation) and 423 (Taxes) Laws of 1977 Administrative rule-making from tailored to address Crandon project Environmental baseline data collection begins in 1982

6 Schematic E-W End View of Ore Body

7 Schematic S-N Profile of Ore Body Massive Ore 8.4% Zn 0.6% Cu 0.7% Pb + Ag, Au Stringer Ore 0.7% Zn 1.8% Cu Minor Pb, Ag, Au

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9 Project I Facilities Plan Rendering

10 Project I Chronology Baseline Data Collection begins in Company decides not to pursue prospecting December 1982 Permit applications are submitted Late Project redesigned to mine massive ore first revised applications submitted May 1986 DNR/PSC releases Draft Environmental Impact Statement June 1986 Mandatory informational hearing conducted November 1986 Final EIS released Master Hearing on permits and FEIS to be held in early 1987 December 1986 Company withdraws permit applications

11 Project I - Significant Permitting Issues Mine Inflow Estimates Extent of groundwater drawdown and resultant impacts to surface water resources Groundwater quality impacts from the tailing facility and compliance with applicable standards Surface water quality related to wastewater discharge and seepage from waste facilities

12 Project II Facilities Plan

13 Project I & Project II Site Layouts

14 Project II Chronology - part 1 Late 1993 Crandon Mining Company is formed (Exxon Corp. and Rio Algom Ltd.) Feb Notice of Intent/Scope of Study is submitted April 1994 Public hearing on NOI/SOS Spring 1995 CMC submits permit applications and Environmental Impact Report April 1997 Governor creates Wisconsin Advisory Council on Mining Conducted independent review from

15 Project II Chronology - part 2 January 1998 Exxon sells its interest to Rio Algom, company renamed Nicolet Minerals Co. Significant Project Changes are proposed (1998/1999) and applications resubmitted in late 1998 Intensive grouting program Pyrite separation, pyritic tailings used as backfill Wastewater discharge location changed form Wisconsin River to on-site soil absorption system April 1998 Moratorium Law Passed Compliance Information submitted December 1998 June Groundwater Rule Changes Adopted January 2000 Irrevocable Trust Fund Rule Adopted

16 Project II Chronology - part 3 Late 2000 Billiton acquires Rio Algom and later merges with BHP to from BHP Billiton, the new owners of Nicolet Minerals Company April 2003 Project is sold to Northern Wisconsin Resources Group, LLC, a subsidiary of a Wisconsin logging and wood manufacturing company October 2003 Project sold to Sokaogon Chippewa Band of Lake Superior Indians and the Forest County Potawatomi Community Permit applications withdrawn

17 Project II - Significant Permitting Issues Mine Inflow Estimates Extent of groundwater drawdown and resultant impacts to surface water resources Groundwater quality impacts from the tailing facility and the backfilled mine and compliance with applicable standards Surface water quality related to wastewater discharge and seepage from waste facilities Moratorium compliance demonstration Irrevocable trust fund structure and funding

18 Lessons Learned # 1 Need a committed applicant Be prepared for a long and costly process Minimize significant changes to the project during review process have a well designed project from the beginning Submit quality work products Applicant should engage the regulators early and work with them to address concerns Avoid battling models

19 Avoid moving targets Lessons Learned # 2 Project changes Statutory and regulatory changes Avoid duplication State/federal processes State/local processes Science Advisory Council Clear and unambiguous regulatory criteria Prospecting valuable but onerous process Groundwater quality standards application Mining moratorium compliance and utility

20 Lessons Learned # 3 Need clear definition of what is expected in terms of information, level of analysis and timeframe Effective project management and decisionmaking by the applicant and regulator Open communication Agencies/applicant Agencies/public Applicant/public

21 Questions Larry Lynch, P.G,. Hydrogeologist Wisconsin DNR (608)