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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: John McCarthy3/21/2007 2:02:49 AM
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Court decision stalls Alaska mine

by Jason Moore
Tuesday, March 20, 2007

ANCHORAGE, Alaska -- The U.S. 9th Circuit Court of Appeals dealt a blow to the Kensington Mine north of Juneau.

In a ruling that could have widespread implications for the entire mining industry in Alaska, the court said the mine's permits from the U.S. Army Corps of Engineers violated the Clean Water Act.

The Corps issued permits allowing the mine's tailings, or waste rock, to be dumped into Lower Slate Lake.

Southeast Alaska Conservation Council' Executive Director, Russell Heath agrees with the court's decision.

"This stuff is a pollutant. It's chemically processed, it's not clean and it's going to kill the lake. You can't call it fill - it's a pollutant," Heath said.

Alaska Miners Association's Executive Director, Steve Borell said the problem is the court.

"To me, the real issue is the 9th Circuit. I mean, they have proven to the world again that it's time to break up that court and make it effective," Borell said.

The court has yet to release a detailed ruling, but Department of Natural Resources' Large Mine Project Manager Tom Crafford said the decision could be far reaching.

"The big picture, I think, is not entirely clear, but I think definitely it's a potential issue of major significance," Crafford said.

It's significant because the court implied the Clean Water Act expressly prohibits waste rock mixed with water and chemicals from being discharged into lakes or wetlands.

If that is indeed the ruling, projects like the controversial Pebble mine in the Bristol Bay region could face major obstacles.

In an early-development concept at Pebble, the tailings facility would entirely cover what is now Frying Pan Lake.

"In general, I think it is fair to say the ramifications are potentially large because virtually all mining projects and all tailings disposal sites are going to involve some level of impact to wetlands," Crafford said.

For now, all sides are waiting for a final ruling, knowing at least one mine will be stalled and others may follow.

Once the detailed ruling is released, it could be appealed to the U.S. Supreme Court.

One study shows that the Supreme Court reversed or overturned 61 percent of Ninth Circuit decisions between 1994 and 2006.

e-mail Jason Moore at jmoore@ktuu.com

ktuu.com
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