How is High Country Citizens' Alliance Working to Stop the Mine?

High Country Citizens' Alliance was formed in 1977, when Amax first tried to mine Red Lady. Now, 32 years later, we are deeply engaged in a very similar battle with U.S. Energy and Thompson Creek. While there is as of yet no official mining Plan of Operations, which the U.S. Forest Service needs to begin review under NEPA (National Environmental Policy Act), we are actively beginning to fight the mine on a variety of fronts.

Our strategy is three-fold—

First— Withdrawal.
We want to have the area in the Crested Butte watershed which surrounds the mining claims withdrawn from mineral entry. This would keep mining from ever being allowed in that location, protecting our valleys and streams and the resort town below. Congressional action will be required for this to be accomplished.

Second—Comprehensive NEPA review.
We will insist that the mining proposal be reviewed in its entirety. That means no10-year, partial mine review. The proposed mine could operate for as many as 50 to 70 years, so we want a review that takes into account the mining of all grades of ore, not just the highest grade that could be extracted in ten years. Impacts to our communities would be felt for generations.

Third—1872 Mining Law revision.
Mining in the United States is governed by the antiquated 1872 General Mining Law. It favors mine operators, with no guaranteed protection of environment and nearby communities. We are engaged in promoting revision to this law. A revised version has passed the House of Representatives and we are working towards passage in the Senate in 2008.

Is the mine a done deal? You bet it isn’t.
We are prepared to challenge the permitting process at every step of the way. Mining claims may belong to the mining companies, but they have a lengthy, costly process to go through before they could ever dig one bucketful of ore. Amax walked away after spending $160 million. The water treatment plant, built by Amax, treats some of the effluent from former mines. It still operates and we will work to ensure its continued function far into the future.

On Tuesday, August 19, 2008 U.S. Energy Corp announced that it had attracted a new mining company to purchase an option to invest in the Lucky Jack Project. The company that has purchased this option is Thompson Creek Metals Company based in Denver, Colorado. Thompson Creek is a moderately sized primary producer of molybdenum that operates open pit molybdenum mines in Idaho and British Columbia as well as a molybdenum roasting facility in Pennsylvania.

High Country Citizens' Alliance is not surprised by this announcement because U.S. Energy Corp has been actively seeking a new investor since Kobex Resources pulled out of the project in March 2008 citing an uncertain regulatory climate and local opposition as reasons why the project was not a sound investment. Fortunately, our opposition to the impacts of a mine on Mt. Emmons and the reasons why mining in this location is not a good idea are still the same. HCCA will continue to fight any proposal for a mine on Mt. Emmons and as with all of the companies who have come and gone in the past we are confident Thompson Creek will decide that an investment in the Lucky Jack Project doesn’t make sense.

Details of the Agreement

You can read press releases from the two companies by clicking here and here , but the details of the arrangement are:

Thompson Creek has paid only $500,000 for the initial option to invest in the project.

The agreement requires only another $6 million of investment over the next six years.

This amount is less than Kobex Resources spent on the project during their short involvement.

The agreement is an “option to buy” that allows Thompson Creek to withdraw from the project at any time, for any reason without a significant financial impact.

The Risks Remain the Same

No matter what company comes to town to look into the prospects of a mine on Mt. Emmons the risks to our water, our tourism and agriculture economy and our environment remain the same.

The historic Keystone Mine has existing Acid Mine Discharge impacts in the Crested Butte Municipal Watershed that require expensive and perpetual treatment. Any new mining runs a significant risk of increasing this pollution and need for treatment.

Any new mine would require widespread disturbance of pristine forest for tailings dumps, pipelines, water reservoirs, and mill sites.

Any mining operation would require truck transport for both construction and operation supplies as well as any produced molybdenum. These trucks could travel through historic downtown
Crested Butte bringing dust, noise and traffic around the clock.

Any new mine would impact the desirability of the entire Gunnison Valley as a destination for tourism and home ownership. The economic effects of such a change could be devastating for a successful tourism destination.

HCCA will be learning more about the role of Thompson Creek in the Lucky Jack Project and will keep you informed of developments as they occur. We urge the Gunnison Valley community to remain unified in its opposition to a molybdenum mine on Mt. Emmons. If you have questions about this news please contact Dan Morse at the HCCA office at (970) 349-7104 or dan@hccaonline.org.