Final EIS for Pogo released

Patricia Jones

Petroleum News contributing writer

State and federal agencies released Sept. 19 a final Environmental Impact Statement for the proposed $250 million Pogo gold mine located about 40 miles northeast of Delta Junction, Alaska.

Final permits have yet to be issued by the Alaska Department of Natural Resources, U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency. The go-ahead for development may follow a 30-day appeal period mandated by EPA.

“I can’t say that we’re going to permit. All I can say is that I can’t really see anything that would trip it up at this point,” said Ed Fogels, DNR’s project manager.

A review of the mine’s impact on Alaska’s wetlands opened last Friday, with the comment period open until Oct. 20.

Construction of the mine would result in the permanent loss of about 140 acres of wetlands, said Victor Ross, Army Corps of Engineers project manager.

The owners of the mine proposed payments of $500 per acre lost toward a conservation fund of the corps’ choice to help offset the wetlands loss.

Permitting agencies have reviewed and evaluated development plans for the underground gold mine first submitted in August 2000 by joint venture partners on the project, Teck Cominco Ltd. and Sumitomo Metal Mining Co.

Teck-Pogo’s Alaska Regional Manager Karl Hanneman told Petroleum News Sept. 24 that he’s hopeful the company can begin construction in January 2004.

Final company approval is needed to start spending the $250 million estimated for Pogo construction, an underground mine expected to employ about 300 full-time people working to produce 375,000 ounces of gold a year.

“The timing of that…depends on when the actual permits come through,” Hanneman said.

Some requests for proposals have recently gone out, Hanneman said, for early components needed at Pogo. Those include camp construction, potable water treatment and domestic waste treatment systems needed to house a construction workforce that could peak at 500 workers.

“We’re starting to talk with folks…to get some scope of work out there to be thinking about,” Hanneman said.

Pogo is located in the upper Goodpaster River Valley, currently accessible only by air. Teck-Pogo proposed building a 50-mile all-season industrial road to the project, restricting public access during the mine’s operation. Public testimony supported that plan.