Vol. 3, No. 3
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December 1, 2005
Nevada's Online State News Journal
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CRIMINAL DEFENSE |
COPYWRITING
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Top News Story:
Nevada's Mining Industry Under Attack; Rural Communities To Suffer Most
Gibbons Calls Attack Outrageous, Blasts Critics Of Sustainable Mining Program
by Johnny Gunn
What appears to be lots of misinformation is being spread around by groups and individuals that don't understand or wish to understand what mining means to rural counties, not just in Nevada but around the west. Beginning in the 19th Century and continuing into today, a community built around the workings of a successful mine often found themselves in serious economic stress when that mine shut down.
The concept of Borrasca (Bust) and Bonanza (Boom) hasn't changed much in the mining industry. What has changed is the way the mine must be shut down. Current mining law demands that the mining claims be returned to a natural state. Buildings must be torn down regardless of whether they could be used for some other purpose, roads must be torn up, power facilities must be dismantled, and water and sewage facilities must be taken out of service and dismantled.
Congressman Jim Gibbons (R-NV) has introduced legislation that could save much of this infrastructure for use by rural counties and businesses. As chairman of the Subcommittee on Energy and Mineral Resources, and drawing on his background as a mining engineer Gibbons introduced an update to the 1872 Mining Law as part of the Deficit Reduction Act of 2005.
"After extensive public hearings, I authored this legislation to help rural American families and communities sustain themselves economically when mining operations cease," Gibbons said. Indicating how the program will help combat the social, economic and environmental ills that come from periods of boom and bust, Gibbons said, "Without this measure, the jobs and infrastructures of these communities can literally disappear when a mine closes."
The legislation reduces the crisis created by a mine's closing by allowing companies to work collaboratively with communities to provide a continued source of economic development after the mineral resource has been depleted. This is accomplished Gibbons says, by allowing the companies to purchase their mining lands and work with communities and businesses to provide sustainable private income not related to mining for those communities.
It is this concept of allowing a mining company to purchase the land it is taking minerals from that has created controversy, but some of it "Outrageous," according to the congressman. For some reason those contesting the idea have forgotten or never knew that the original 1872 mining law allowed for the "patenting" of a claim if it proved itself, that is became economically viable. That land then was treated as real estate and property taxes were levied by counties and other government entities.
"Unfortunately, several special interest groups have dishonestly portrayed this measure as a giant land sale and giveaway to developers," Gibbons said. Going into more detail, he continued, "Not only is this rhetoric false, it is an affront to the rural American families whose livelihoods depend on sustained economic development." He called the attacks on his legislation "appalling." "We cannot allow the scare tactics of a few anti-energy, anti-development, and anti-private property special interests to threaten thousands of American families."
Under the Gibbons plan, a claim could be patented for $1,000 per acre not the current $2.50 called for. There are thousands of mineral claims in Nevada but not that many that would meet the requirements of the proposed legislation. Nevada's largest property owner is the federal government, which has a claim on about 87 percent of the state. Some of that land is under the authority of the Bureau of Land Management, other owners are the National Forest Service, the U.S. military with bombing ranges and secret bases, and of course withdrawals for such things as Yucca Mountain.
From a tourism standpoint the concept of a ghost town is a favorable option, but if one happens to own property or a business in a community in which the economic base is a mining complex, the concept of a ghost town is distressing at best.
Reduction of Mercury Continues
Prior to 1998 there were no rules or standards for the release of mercury and other heavy metals into the atmosphere. Mercury, tungsten, and other heavy metals are naturally occurring throughout most of Nevada, and during mining and milling operations the metals are released into the air. When the first standards were being discussed Nevada's mining operations were responsible for releasing as much as ten tons of mercury into the air. Nevada became the number one state for mercury emissions.
State and federal standards were set and Nevada's mines have reduced these emissions to just 3,755 pounds, a reduction of more than 80 percent. The state's environmental agency along with the Nevada Mining Association just announced even stiffer standards and an agreement to meet the standards. According to state officials, "This is the first regulatory program of its kind to control mercury emissions from mining operations."
Scrubbers are already in use on smokestacks in recovery operations at Nevada's mines and even stronger methods are about to be put in place to reduce the heavy metals being released. Environmental authorities in Idaho and Utah have been complaining about the release of the heavy metals and have threatened federal lawsuits if Nevada's mines didn't put stiffer controls on the emissions.
Prior to the new program, emission controls have been on a voluntary basis according to Russ Fields, Executive Director of the Nevada Mining Association. He anticipates a boost in the success of the program because of the agreement between the mines and the state EPA.
Barrick's Power Plant on Line
A boon to Storey County's meager economy has been put on line by Barrick Goldstrike Mines, Inc.'s new power plant. Located on the Storey County side of the Truckee River, the plant will help supply power to its mine operations north of Carlin in eastern Nevada.
The plant is a 116-megawatt plant and any extra energy that is developed will be made available to Sierra Pacific Power Co. (SPPCo). Nevada Governor Kenny Guinn was at the ribbon cutting ceremony establishing the energy facility.
Barrick is one of the world's largest producers of gold and is headquartered in Toronto. Company officials say having a power plant of their own will reduce the cost of producing an ounce of gold. Gold, like any other product of industry carries a cost to the producer. In the case of Nevada gold a mine and mill is considered economically viable if the cost per ounce to produce can be held near $150.
The natural gas powered plant is the first to be established under a 2003 law that allows a company to produce outside the state regulated energy industries. The law would have allowed Barrick to either buy power from a wholesale source or produce its own power. The company elected to produce its own power and sell any leftover to SPPCo.
According to Barrick officials the gas-powered generators will use about 200 gallons of water per week and they compared that to the hundreds of gallons per minute that are used by conventional gas turbine power plants.
Storey County officials are pleased with the concept of the operation. According to one commissioner, this certainly adds to the tax base of Nevada's smallest county. Along with the power plant, Storey officials are also anticipating the opening of a giant Wal-Mart distribution center in one of the largest business and industrial parks in the state. The Wal-Mart center will not be a retail outlet but rather a distribution point for western states. One Storey official told The Nevada Observer, "Wal-Mart is forcing some of the largest manufacturers in the country to build near their distribution plant. They are an incredible economic factor for Storey County."
According to Barrick Goldstrike officials, the new power plant took about a year to build and met the planned budget of about $98 million.
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