FEDERAL INDICTMENT – The U.S. Department of Justice Nov. 18 that a federal grand jury in Anchorage has indicted XS Platinum, Inc. and five of its officers and employees on five felony violations, including conspiracy to violate the Clean Water Act and for submitting material false statements. The indictment charges XS Platinum and five of its officers and employees – Bruce Butcher and Mark Balfour (both Australian citizens); James Slade (a Canadian citizen); and Robert Pate and James Staeheli, (both U.S. citizens residing in Washington state) with conspiracy to violate the Clean Water Act during platinum mining operations on the Salmon River in Western Alaska, along with various related charges. The mine contains placer deposits of platinum, along with smaller amounts of gold and palladium. The majority of XS Platinum’s claims were on land managed by the U.S. Bureau of Land Management. The Salmon River is important for the spawning of all five species of Pacific salmon (chinook, chum, coho, pink, and sockeye), and the rearing of coho and sockeye salmon. According to the indictment, beginning in 2010 and continuing through 2011, XS Platinum and the individual defendants knowingly discharged industrial wastewaters from placer mining operation at the Platinum Creek Mine into the adjacent Salmon River in violation of the terms of the company’s CWA permit. According to the indictment, XSP told federal regulators in its mining and CWA permit applications that the operation of the mine would recycle all of its wastewater and result in “zero discharge” of mine wastewater to the Salmon River. The indictment alleges that the defendants conspired to violate the CWA by concealing the mine wastewater discharge violations from federal officials, and submitting material false statements to federal agencies. Alaska Miners Association Executive Director Deantha Crockett and members of her board of directors are working with state environmental regulators to get further information on the alleged water violations by the Australian-based XS Platinum. “If violations are proven to be true, the company should be held accountable and receive swift and appropriate consequences,” said Crockett. “Any operating company should hold itself to the highest possible standards, and if they do not, I fully support federal and state agencies taking enforcement action.”

PLACER RECLAMATION – Bureau of Land Management Alaska Nov. 17 said it is providing guidance establishing clear and consistent standards for rehabilitating placer-mined streams on public lands managed by the BLM. This guidance is intended to assist the placer mining industry comply with national reclamation regulations and policies. In addition, it requires that mining operations are adequately bonded thus ensuring the public does not bear reclamation cost of streams mined on BLM-managed public lands. Implementation of the guidance will be phased in over the next two years. The BLM is working with the State of Alaska to ensure miners continued access to the State of Alaska bond pool. “The new guidance will help placer miners meet standards aimed at ensuring clean water,” said Steve Cohn, deputy state director for resources, BLM Alaska. “Working with industry, state government, and all stakeholders, our agency will fulfill its stewardship responsibilities in managing public land uses and resources.” BLM is actively coordinating with the placer mining industry, the Alaska Miners Association, Alaska Department of Natural Resources, and other partners to provide guidance and technical assistance to help miners with compliance. Miners who may be starting new operations or expanding existing operations are encouraged to contact BLM mining compliance staff to learn more about how this guidance may affect their operations. Additional information about this reclamation guidance can be found at http://www.blm.gov/ak/st/en/prog/minerals.html.