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June 3, 2003
Wisconsin
From: Zoltan Grossman zoltan@igc.org
Crandon mine permit process put on hold
Reminder:
Wolf Watershed Educational Project
meeting at Mole Lake Environmental
Center on Saturday, June 14,
10 am-3 pm (same day as tribal powwow).
Owner halts Crandon mine review:
Oft-debated project will go on eventually, he says
By Lee Bergquist
Milwaukee Journal Sentinel
June 3, 2003
http://www.jsonline.com/news/state/jun03/145243.asp
The owner of the proposed Crandon mine in northern Wisconsin wants
to put a government review of the controversial project on hold.
Gordon P. Connor, a North Woods businessman who bought the mine
property in April, expressed frustration Monday with how the state
Department of Natural Resources was handling his application for
an underground zinc and copper mine.
"We thought that we had a plan and an approach," Connor said.
"They (the DNR) have complicated it, so we are going to have to
do a review of where we are."
But Connor emphasized that he has no plans to back away from the
project, and he noted that a mine near Ladysmith also was delayed
for a time before work began.
"This is a very important deposit, and it will be developed,"
Connor said. "Someday this will happen. But we are not under any
time constraints to get it going."
First proposed in 1994, the Crandon mine in Forest County has
been a lighting rod for environmentalists, who say that plans to
extract 55 million tons of ore near the headwaters of the Wolf River
will damage the environment and harm water quality downstream.
But supporters say it would supply badly needed jobs in northern
Wisconsin. After buying the mine property, Connor said it would
employ 200 people and provide mineral, income and forestry property
tax revenue of more than $5 million annually.
Connor formed Northern Wisconsin Resource Group to buy the proposed
mine from a unit of BHP Billiton of Melbourne, Australia. Connor's
company is continuing to look for other investors as partners.
BHP Billiton has retained no equity stake or mineral royalties
to the property.
DNR raises questions
During an interview Monday, Connor said he asked the DNR and the
U.S. Army Corps of Engineers to stop their work on an environmental
impact statement after he received a letter May 21 in which the
DNR expressed safety concerns about how the company would re-fill
cavities after extracting the ore.
Connor's company, which goes by the name of the former owners,
Nicolet Minerals, plans to use a combination of cement and waste
rock to re-fill the underground mine as work progresses.
"Should the backfill not have adequate compressive strength, there
could be structural stability problems affecting mine operation
and safety," the DNR wrote.
The letter, and request for other detailed information, "came
out of the blue," Connor said. "The regulatory process seems out
of whack.
"When you have a process that has been going on for nine years,
and they want to chase things that are probably irrelevant, why
spend the money?" he asked.
He estimated that his newly formed company is spending $100,000
a month for bills from consultants and the DNR. As part of the environmental
review process, the DNR's work is billed to the applicant.
DNR is surprised
The DNR said Monday that Connor's request to put the project on
hold was unexpected.
"This was a surprise to me," said Elizabeth Kluesner, executive
assistant to DNR Secretary Scott Hassett. "Until then, we had received
a clear indication that they wanted to continue with the regulatory
process."
Kluesner said about 30 consultants are working on the project.
She said the agency was trying to determine how to put all of the
work on hold.
Environmentalists were pleased by the delay.
Rep. Spencer Black (D-Madison) - an opponent of the mine - said
the decision to halt regulatory work would be a major blow for the
mine.
"This is something that you cannot start and stop on a dime,"
Black said. "There will not be a mine at the headwaters of the Wolf
River anytime soon.
"The Connors might try to put a good face on this. But if the
review process was going well for them, they wouldn't have asked
for a halt."
Pull the Plug on the Crandon mine proposal
Regulators Should Refuse Request to "Pause" Permitting Work
News from the Sierra Club
June 3, 2003
Contact: Dave Blouin,
Sierra Club - John Muir Chapter,
608-233-8455 burroak15@aol.com
The Sierra Club believes that State and Federal regulators should
reject Northern Wisconsin Resource Group's (NWRG) outrageous request
to "pause" the proposed Crandon mine permitting activities while
the mining company performs an internal review of the project. The
Sierra Club strongly urges State and federal regulators and decision-makers
to reject this unprecedented request, and permanently halt processing
of the current incomplete mine application.
"NWRG cannot simply turn off a permitting effort and then restart
it at its convenience because it failed to do its homework before
buying the mining company," said Dave Blouin, Sierra Club spokesperson.
"State and federal regulators have no obligation to bend over backward
to accommodate this company's incomplete and failed mining application,
and should reject this request."
Since purchasing the mining company less than two months ago,
NWRG has repeatedly demonstrated that it is unqualified to operate
a mine in Wisconsin. Examples include:
* NWRG stated it will not respond at this time to outstanding
requests for information raised on the mining application. WDNR
has requested information such as the regulatory compliance history
of the applicant and data on the applicant and parent company's
financial ability to conduct mining in a responsible manner. WDNR
should not continue work on an incomplete mine permit application.
(see attached text of NWRG's 5/29/03 letter to WDNR and the U.S.
Army Corps of Engineers)
* NWRG stated it will not respond at this time to regulator's
requests for additional technical information about the mine proposal
needed to complete Draft Environmental Impact Statements.
* At a May 28 meeting with the Forest County Board of Supervisors
Mining Committee, a representative of NWRG acknowledged that the
company had not yet found a mining company partner for the mine.
NWRG's owner has publicly acknowledged that he is unqualified to
operate a mine and needs a partner. The Forest County Mining Committee
was told that the NWRG had a partner but was "spooked" by recent
events and withdrew. NWRG's inability to attract any mining company
as a partner demonstrates that it should not be allowed to move
forward with the application.
* At the same meeting, NWRG told the Forest County Board of Supervisors
Mining Committee that county land under a purchase contract with
the mining company would be returned to the county. If so, Forest
County would be required to repay up to $600,000 to the mining company.
? NWRG's unprecedented request throws the jobs of dozens of regulatory
agency employees, contractors and vendors into limbo. At least 30
people contractors and state staff are employed in Wisconsin's permit
review alone and the number involved in the Corps of Engineers'
review is likely much higher.
* Without explanation, NWRG has stated it would employ 200 people
if permitted to mine. This is a reduction of more than 50% of the
number of jobs proposed by previous owners and requires scrutiny
by regulators.
"The evidence is clear that this 'request' is the desperate act
of a company that does not have the resources or the expertise to
operate a mine. Regulators should reject this request - especially
from an applicant which refuses to give regulators information required
of permit applications," said Blouin. "Now is the time to end this
controversy and permanently protect the natural and cultural resources
of the Wolf River headwaters area."
Northern Wisconsin Resource Group purchased Nicolet Minerals Company
from BHP Billiton on April 10, 2003. The Wisconsin DNR and U.S.
Army Corps of Engineers are currently reviewing applications to
operate the proposed Crandon mine in Forest County, Wisconsin.
Nicolet Minerals Company
May 29, 2003
Melissa DeVetter
Crandon Project Manager
Wisconsin Department of Natural Resources
101 South Webster St.
Box 7921
Madison, WI 53707
Robert Whiting
U.S. Army Corps of Engineers
St. Paul District
190 5th St. E.
St. Paul, MN 55101
Re: Crandon Mine Project - Hold on Further Action
Dear Ms. DeVetter and Mr. Whiting:
On April 10, 2003, Northern Wisconsin Resource Group LLC ("NWRG")
purchased Nicolet Minerals Company from BHP-Billiton. As you know,
the previous owners of the Crandon Mine Project have spent over
a decade working with regulators and interested parties in preparing
the necessary application and analyses for approval of the project.
As the new owner we are reviewing those materials to assess how
they fit with NWRG's long range plans, goals and vision for the
project.
With this recent change in ownership and management, it seems
an appropriate time for a pause in the process. This will allow
NWRG to complete its internal review of the project and consult
with other parties, as appropriate. These efforts should provide
an economy of resources in the future approval process for the Wisconsin
Department of Natural Resources (WDNR), U.S. Army Corps of Engineers
(USACE) and the applicant.
With this background, NWRG requests that the WDNR and USACE:
1.Stay further processing of all pending applications and approvals
for the Crandon Mine Project.
2.Delay further work on the draft environmental impact statements
until NWRG completes it internal review of the project.
3.Direct all employees, vendors and consultants under WDNR and
USACE control to stay all work on the Crandon Mine Project.
During this stay period, NWRG will:
1.Continue monitoring regional groundwater levels, wetland levels,
and lake levels to aid in the State and Federal environmental impact
process and to establish baseline data.
2.Agree to toll any statutory or regulatory deadlines by which
the WDNR and USACE are required to act on permit applications or
requests for approval. This tolling shall end upon the applicant
requesting that the WDNR and USACE reinitiate the application/approval
process.
3.Not withdraw the permit applications or requests for approval
that were previously filed for the project. In this regard, NWRG
is not seeking to cease approval of the proposed mining project
- just place that approval process on hold.
4.Hold the tailings testing program in a stable environment by
flooding the cells with deionized water and sealing the cell ports
to eliminate tailings exposure to the atmosphere.
5.Not respond to any outstanding requests for information or concerns
raised on the application (eg. the mining moratorium and paste backfill
submittals). The applicant will file responses, as appropriate,
after the stay.
We look forward to working with the WDNR and USACE in the future.
In the interim, please do not hesitate to contact me.
Sincerely,
Gordon R. Connor
Project Manager
Cc:Stephen V. Donahue, Foth & Van Dyke
Cindy Emmons, Emmons & Associates
Monday, June 2, 2003
www.thewheelerreport.com/releases/Jun03/Jun2/0602blackmine.PDF
Black Hails Decision To Put Mine on Hold
Today's action by the owners of the Crandon mine to stop regulatory
work on the project is a good news for the environment and for Wisconsin,
according to Representative Spencer Black, author of the state?s
mining moratorium law.
"The mining company's action to stop all consideration of its
Crandon mine application means there will not be a mine at Crandon
any time soon," Black said.
"This is a victory for the citizens of Wisconsin who worked so
hard to pass the mining moratorium law. The mining moratorium law
prevents a sulfide mine like the one at Crandon from opening unless
the owners can show a similar mine has operated and closed without
harming the environment. As today's letter from Nicolet Minerals
indicates, the Crandon mine's owners have been unable to meet that
requirement," Black said.
"Construction of the Crandon mine, which is located at the Wolf
River headwaters, would pose a significant threat to one of our
state's most pristine waterways. That's why today's announcement
is good news," Black said.
Indigenous Mining
Campaign Project
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