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Providing coverage of Alaska and northern Canada's oil and gas industry
November 2003

Vol. 8, No. 46 Week of November 16, 2003

Greens Creek tailings disposal expansion approved

Patricia Jones

Petroleum News contributing writer

The Greens Creek, Alaska, tailings disposal expansion project has advanced another step, as the U.S. Forest Service — the lead agency for the permitting approvals process — released the final environment impact statement and accompanying record of decision on Oct. 31.

The record of decision, signed by Tongass National Forest Supervisor Forrest Cole, approves a tailings expansion plan for the underground mine first proposed in January 2001 by operator Kennecott Greens Creek Mining Co.

A 45-day appeal period must be complete before permits are issued. Deadline for appeals is Dec. 29. Kennecott likely will receive permits and the go-ahead for construction next February.

Greens Creek, which produces gold, silver, lead and zinc, is located near Hawk Inlet on northern Admiralty Island about 18 miles southwest of Juneau, Alaska. Mining started at Greens Creek in 1989 and at current production rates, the company will run out of room for tailings in February 2005.

Another 20 years

The planned tailings expansion will allow the mine to operate another 20 years, a significant economic impact to the region’s economy. Greens Creek employs 265 workers year-round. In 2002, the mine produced a record 733,507 tons of ore, according to the Alaska Mineral Industry report. That included 80,000 tons of zinc, 27,500 tons of lead, almost 11 million ounces of silver and 102,600 ounces of gold.

The agencies’ preferred expansion alternative outlined in the environmental impact statement would increase the tailings footprint from the 29 acres allowed under existing permits to 62.2 acres. Total land leased to the company after the expansion would be 123 acres, up from 56 acres under the existing permit.

Part of the tailings disposal and leased land is within the Admiralty Island National Monument. Prior to its expansion, Greens Creek was leased 38 acres of monument land. Under the approved expansion, the mine would lease 68 acres of monument land.

Admiralty National Monument comprises 955,747 acres of which 937,396 acres are designated as wilderness, according to a Forest Service press release.

In addition to approving an expanded tailings disposal site, the record of decision requires Kennecott to add carbon to tailings to enhance sulfate reduction within the tailings pile.

The agency decision requires a 30-month study to determine how much carbon should be added to tailings, what form will be most effective and how to incorporate the material in tailings.






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