Nicolet Minerals Co. names three mines for review under the 1998 mining moratorium law
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"Environmentalists question new mining law's intent"
Company press release Jan. 5, 1999

Nicolet Minerals Co. names three mines for review under the 1998 mining moratorium law
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Wisconsin DNR release

January 5, 1999
Contact: Larry Lynch, (608) 267-7553,
or Bill Tans, (608) 266-3524

Madison, Wis. The company proposing to develop an underground mine near Crandon today submitted the names of three mines and data about the mines' environmental performance for review under the 1998 mining moratorium law.

"With the receipt of these materials, the department can now begin the process of verifying whether the mines Nicolet Minerals Company identified meet the test laid out in the mining moratorium law," said George Meyer, Department of Natural Resources Secretary. "We will be sharing all the information we have with the public, and are interested in any relevant information the public can provide to help us in the verification process."

The law, commonly called "the mining moratorium law" and passed by lawmakers in early 1998 and signed by Gov. Tommy G. Thompson on Earth Day, sets up an additional requirement for mining companies to meet in order to receive a permit to mine in Wisconsin. The law requires a mining permit applicant to submit data which demonstrates that an example mine has been closed for 10 years without causing significant environmental pollution, and an example mine has operated for 10 years without causing significant pollution. The DNR may not issue a mining permit unless two mines-or the same mine-meet the test.

Under the moratorium law, an example mine must be within a sulfide ore body that has the potential to create acid runoff, as does the proposed Crandon mine. The example mine may not have caused "degradation that results in any violation of any environmental law as determined by an administrative proceeding, civil action, criminal action or other legal proceeding."

In addition, an example mine cannot be an abandoned property nor ever have been included on the federal Superfund program. The Superfund program targets waste sites that pose the biggest threat to human health and the environment.

Wisconsin has no metallic mines in production now, but Nicolet Minerals Co. is seeking permits from the DNR to develop an underground zinc and copper mine five miles south of Crandon. The company proposes to develop a 550-acre site, and to operate a mine, mill and all related facilities for 28 years, to extract 55 million tons of zinc, copper and lead ore, plus small amounts of silver and gold.

The company identified these mines, all of which are contained in sulfide ore bodies, as meeting the mining moratorium requirements:

McLaughlin Mine, near San Francisco, Calif., owned and operated by Homestake Mining Company, which Nicolet submitted as an example mine meeting the law's requirement for a mine that has operated for 10 years without causing significant pollution. The McLaughlin Mine, an open pit gold operation, began operations in 1983.

Cullaton Lake Mine, in Northwest Territories, Canada, now owned by Homestake Canada Inc., of Vancouver, which Nicolet submitted as an example mine meeting the requirement for a mine that's been closed for at least a decade without causing significant pollution. The Cullaton mine, an underground gold mine, was developed and operated between 976 and 1985 and has been closed since.

Sacaton Mine, near Casa Grande, Ariz., owned and operated by ASARCO, of New York, which Nicolet submitted as an example mine meeting both requirements. The open pit copper mine operated from 1972 until 1984.

The DNR will begin to review and verify information submitted on the example mines and will eventually develop a recommendation on whether or not the mines meet the moratorium requirements. That recommendation will likely be presented in 2000 at the same time the DNR submits to an administrative law judge its recommendations on Nicolet's applications for a mining permit, as well as all other department permits, approvals, licenses and the final environmental impact statement. This environmental impact statement will describe the short and long-term effects the proposed mine could have on air quality, surface waters, groundwater animals, plants, and the area's social and economic systems.

At the master hearing, the judge will gather evidence from Nicolet, the department and other interested parties. After the hearing, the judge has 90 days to decide if the mine can be permitted, and so, under what conditions. The judge will include in his or her decision a determination of whether the example mines comply with the mining moratorium law.

All information collected will be available for public inspection at DNR offices in Madison and Rhinelander. People can submit information about any of the example mines directly to the department any time before the department makes its recommendation to the administrative law judge.

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"Environmentalists question new mining law's intent"

by Ron Seely, Environmental reporter
Wisconsin State Journal, Saturday, Jan. 9, 1999

A Wisconsin environmentalist said Friday that Nicolet Minerals Co.'s permit application raises questions about the intent of the state's new mining moratorium law.

Nicolet, in seeking permission this week for a mine in the Crandon area, cited Arizona's Sacaton Mine as meeting the requirements of the new mining moratorium law. The law requires that Nicolet identify a mine that operated for 10 years without causing pollution and a mine that has been closed for 10 years without pollution.

Arizona environmental officials said Friday that they can't say whether the Sacaton Mine, which closed in 1984, has caused pollution because state regulations do not require monitoring of the mine. (see above story)

David Blouin, with the Mining Impact Coalition, an anti-mining group, said the Sacaton Mine raises questions about the intent of moratorium law and whether its implementation by the Department of Natural Resources should take into consideration such circumstances.

Is it good enough, Blouin asked, if the mines cited by Nicolet simply meet the letter of the law? And, he continued, is a comparison valid if another state has laws less strict than in Wisconsin?

Bill Tans, who is overseeing the Nicolet permit process for the DNR, agreed that the situation with the Sacaton Mine shows the difficulties of implementing the moratorium law. He said the agency has just started verifying Nicolet's claims about the mines they submitted.

In checking out the McLaughlin Mine in California, Tans said the agency discovered that the gold mine covers parts of three counties and falls under the jurisdiction of 10 regulatory agencies.

"This is not a simple task," Tans said, "I think it's going to be a very complicated task and it is going to take many months."

For several months, environmentalists such as Blouin have been asking the DNR to write rules that help clarify and implement the moratorium law. But DNR Secretary George Meyer said the law needed no rule making because the language was very clear as it came from the state Legislature.

Although Tans said the agency will verify whether the mines submitted by Nicolet meet the requirements in the law, a final decision on the matter will be made by the judge who presides over the permit hearing.

That hearing won't come for at least two years, Tans said.



For the record, the Mining Impact Coalition of Wisconsin is not an "anti-mining group" as described in the above article. It is true that our organization is on record in opposition to Rio Algom's proposed "Crandon" mine due to the identified difficulties with operating a mine at the site and the inherent long-term risks associated with it. It is not true that this organization is opposed to all mining. The Mining Impact Coalition is a watchdog organization committed to factual research and education about the mining industry's impact on our social, cultural, and environmental landscape.



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Company press release

January 5, 1999

Nicolet Minerals Company Completes Major Regulatory Permit Submissions; Also Provides "Mining Moratorium" Compliance Document to DNR

(Crandon, January 5, 1999) - Nicolet Minerals Company has nearly completed its first year as owner of the Crandon Project. During that year, NMC accomplished the goals that they set when they announced that they had purchased 100% of the project last January. Their stated accomplishments included:

  • implementing an active public consultation process,
  • identifying the key public concerns,
  • re-engineering the project to address those concerns,
  • revising all major permitting documents; and,
  • complying with the moratorium law.

"We have done everything that's been asked of us by the DNR, the legislature, and the citizens of Wisconsin," said Dale Alberts, Public Affairs Director at Nicolet Minerals Company. "We have also complied with the requirements set forth in the 'moratorium law'."

"The 'moratorium law' has served its purpose. The lessons learned from this evaluation demonstrate that, when a company approaches a mining project with the right philosophy, the best proven technology, and a commitment to protecting the environment, a mining project can be built, operated, and reclaimed without causing damage to the environment. The example mines submitted demonstrate that," according to Alberts.

The submission describes three mining operations - two in the United States and one in Canada - that meet the specific criteria included in this new statute, and it includes hundreds of pages of supporting documents. The three examples represent both large and small operations, both underground and open pit mining methods, and a variety of geologic and geographic settings. Most importantly, they demonstrate that metallic sulfide mines can, indeed, be designed, built, operated and reclaimed so as not to pollute ground or surface water resources.

The moratorium law contains two major components. The first requirement is for the mining applicant to provide evidence to the DNR that an example mine operated for at least 10 years with no violations or significant pollution resulting from acid rock drainage or the release of heavy metals.

*The McLaughlin Mine, a gold mine located in Northern California is submitted as a mine that meets the operating criteria. This exemplary mine has operated since 1983 with no disqualifying notices of violation. The McLaughlin Mine has won numerous awards recognizing its sound environmental practices. Homestake Mining Company, the owner of the McLaughlin Mine, was commended by the Yolano Group of the Mother Lode Chapter of the Sierra Club for its efforts to establish an environmentally sound mining operation.

The second requirement of the moratorium law was to provide an example of a mine that has been closed for at least 10 years with no violations or significant pollution resulting from acid rock drainage or the release of heavy metals.

*The Cullaton Lake Mine, located in the Northwest Territories, Canada is the example that meets the closure criteria. This underground gold mining operation, also owned by Homestake, Canada has been closed since 1985 with no violations.

*The Sacaton Mine, located near Casa Grande, Arizona, is owned and operated by Asarco of New York, New York. The Sacaton Mine meets both the operating and closed criteria. This open pit copper mine operated from 1972 until its closure in 1984, and has been closed since. it is located in a predominately agricultural and residential area. The mine has an excellent track record and has never - during operations or since closure - been cited for a violation.

"NMC is pleased to have been able to comply with the toughest test ever put before an industry. However, it is important to keep these types of comparisons in the proper perspective. No two ore bodies and therefore no two mines are exactly alike," Alberts said. "Industrial facilities such as the Crandon Project must be designed for the site-specific conditions that exist."

"Nicolet Minerals Company is committed to building and operating a mine that is best suited for the conditions that exist in Northern Wisconsin. As a result of the considerable public input we identified the key concerns that local residents had about the project and we have addressed those concerns. We have incorporated the best science, engineering and technology in designing a mine that meets both the exacting regulatory requirements and the expectations of our neighbors in Forest County.

NMC remains committed to building a mine that the residents of Forest County, Rio Algom, the mining industry, and all of Wisconsin will be proud of," said Alberts.

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