Environment:

Closing mine part of bigger battle

State wants to keep feds from regulating industry

Steve Marcus

This open pit gold mine is part of a complex operated by Newmont Mining Corp. near Carlin. The EPA alleges that one of the Carlin mines and another in Nevada improperly disposed of mercury, allowing it to leach into the ground from tailings ponds. The company says it sells, not disposes of, most mercury from the site.

By Lisa Mascaro (contact)

Wednesday, June 3, 2009 | 2 a.m.

LAS VEGAS SUN

Starting point or model on mercury? (4-21-2009)
Regulators OK restart of Nevada mine (3-25-09)
EPA allegations spark call for checks on state's mines (1-27-2009)
Heavy price for gold (3-5-2006)
No new laws seen for mines (3-5-2006)
Nevada mines release most mercury (6-28-2004)

Nevada Mining Association

Jerritt Canyon

Chris Morris

See a larger version of this graphic

Washington — A Northern Nevada gold mine that was recently allowed to reopen after being among the region’s worst emitters of airborne mercury had its roasting operations halted recently by state regulators.

The company had failed to install state-mandated mercury reduction equipment on time.

The state’s action came as federal regulators watch Nevada’s new mercury control program and weigh whether to establish a nationwide program for reducing mercury emissions from gold mining.

The temporary shutdown at Jerritt Canyon Mine north of Elko raises questions anew: Is the state’s mercury regulation program sufficient or would a broader federal program better halt toxic emissions from Nevada’s gold mines?

Justin Hayes, program director of the Idaho Conservation League, said the state should have never let the mine reopen until all the new equipment was installed.

Jerritt is operated by Queenstake Resources Inc., a subsidiary of Vancouver-based Yukon-Nevada Gold Corp.

“The decision to allow this company to turn on this roaster without installing this equipment first was clearly a wrong decision,” Hayes said.

In industrial mining, roasting is the process of burning the ore to get at the gold.

Hayes’ group blames Nevada’s gold mines for polluting streams and contaminating fish with high mercury levels, making them unsuitable for eating. Mercury harms brain development, especially in children and fetuses.

Still, Hayes and other environmental groups appreciate the state’s intervention.

“At the very least, the state has shut them down — that’s good,” said John Hadder, director of the Reno-based Great Basin Resource Watch.

The Nevada Environmental Protection Division allowed the mine to reopen in late March contingent on the company’s installing mercury reduction equipment by the end of May.

The state said the company has made great strides in reducing emissions from the site. State inspectors have been there monitoring the work as the company ramped up, said Jill Lufrano, spokeswoman for the Environmental Protection Division.

But the company said a delay in the fabrication of fiberglass duct-work needed for the new system left it unable to meet the deadline, according to a statement on Monday.

The roasters were shut down over the weekend, although other work continues, the company said.

Environmental groups estimate that since the mine reopened in March, several hundred pounds of toxic mercury could have escaped into the air. The state disputes that estimate because the site was not operating at full capacity and other emission reductions have been made, Lufrano said.

Nevada’s regulators believe that once all the mercury emission devices are installed as required, the mine that once spewed four tons of mercury a year will emit no more than 175 pounds.

“Our program is successful,” Lufrano said. “Do we need another program on top of our program? We don’t think so.”

“Things are not fixed overnight,” she added. “But they are certainly fixed a lot faster at the state level than a federal program that might not fit Nevada.”

Following a yearlong investigation, the state in 2008 ordered Jerritt to briefly shut down. The mine reopened a month later, in April, on the condition that it install mercury emissions control equipment by year’s end.

By August, the mine voluntarily shut down without having made the changes. The company reported losing $105 million in 2008 because of the closure.

On March 25, 2009, the state allowed Jerritt to reopen provided emissions equipment was installed before last weekend. When it became clear the company could not meet that deadline, the state ordered the roasting operations to halt. The company expects to have the new equipment installed this month.

As part of a long-running clean air lawsuit, the federal Environmental Protection Agency is expected to announce this summer whether it will draft regulations on mercury emissions from gold mines.

The state has fought the lawsuit, saying a federal program would interfere with the state’s own mercury reductions program, which has been operating for several years. The Nevada Mining Association is also fighting the federal program.

Discussion: 10 comments so far…

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By cnev

June 3, 2009

3:31 a.m.

Suggest removal

The term Nevada regulation is an oxymoron. Nevada government is famous for looking the other way when it comes to safety regulation. They have been leaned on many times by the EPA for it's lack of enforcement with the Clean Air Act, Building codes, sanitation disposal, health code enforcement, etc.
I am not a fan of government layers but Nevada's corruptness supporting industry in this state is disgusting. Let the Feds come in and force Nevada to do the right thing. Nevada regulators' idea of the right thing rarely is.
By gunowners4obama

June 3, 2009

5:53 a.m.

Suggest removal

And remember, this is an industry on which our elected officials - including Buckley and Reid - do not want to impose new taxes while education and other government services are drowning.

An ignorant electorate appeals to the Nevada type of politician.

Come in feds, please. This corrupt state needs supervision.

Kudos to the Sun for bringing this to light.
By vilate

June 3, 2009

7:02 a.m.

Suggest removal

What is wrong with letting Jim Gibbons regulate mercury emissions. He is a mormon, family man, republican and war hero. He was ordained by god to be governor. No one in public office has higher morals and standards.
By Judy

June 3, 2009

7:51 a.m.

Suggest removal

So why should the state spend it's money, OUR money, on behalf of the mining industry? They are being taxed like favorite children, barely at all. Let them fight their own battles and I hope they lose.
By Launce

June 3, 2009

9:01 a.m.

Suggest removal

Bring in the feds, shut them down. The state and the mining industry boast about their "partnership," which is the recipe for destroying the air, land and water while shipping billions in profits out of our state and country.
Next year the gold mining industry, which is looking at all-time high prices for its product,hopes to cut its tax bill in HALF. People, we only get one bite of this non-renewable resource. In Alaska, extracative industries are taxed at 25 percent. The effective net proceeds tax to the state of Nevada is about .5 of 1 percent.
We're being simultaneously poisoned and robbed.
By vegasguy10

June 3, 2009

9:25 a.m.

Suggest removal

I agree with the others who have commented. This state needs to look for a stronger tax base that serves the public good as well as the cofers.
By Libra

June 3, 2009

9:36 a.m.

Suggest removal

It's no surprise that certain industries in Nevada are given preferential environmental and taxation treatment. Mining, casinos, and agriculture are the best examples. Here, and in a lot of states, PACs and lobbyists are free to dole out a lot of money to sway our elected officials, regardless of party, to act against our best interests. To make matters worse, large corporations like Queenstake make mega profits which leave the US.

Nevada laws are written to be purposely vague and IMO are not uniformly enforced. State regulators on the front lines would like to end some of the disparity in enforcement but are unable to do so. They are told by those up the food chain that they can't pursue fines against certain industries or are "pursuaded" to be lenient. Nevada does not fund enough investigators or legal backup to adequately regulate most industries. Heaven forbid we should discourage business in Nevada!

vilate, I love your sarcasm. Gibbons has done nothing but degrade Nevada's image even further. The sad thing is that after his gig as governor, he'll probably tap the good ole boy network for a lucrative "consultant" job. He is the poster boy for corruption and sleaze.
By Galfromvegas

June 3, 2009

10:50 a.m.

Suggest removal

Just like the public could not count on the regulators, the government, or the industry to be honest about the ins and outs of the body count at city center, we can't expect this same set of players to be honest about the vast and unchecked damage by the mining industry. We desperately need the Sun and a free press to bring these truths to light. Thank you for your coverage.
By Patrick_R_Gibbons

June 3, 2009

4:57 p.m.

Suggest removal

The EPA really needs to go, it is a dangerous reach of federal power. Imagine if the federal government gave the department of defense the same broad sweeping powers - Defense would have the ability to do whatever it wants so long as it protects us from foreign enemies...that includes jailing Americans indefinably. But this is exactly what we have done with the unaccountable EPA, give them the power to regulate anything no matter the cost no matter how little harm -- just so long as it poses some kind of measureable threat.
By Galfromvegas

June 3, 2009

11:36 p.m.

Suggest removal

Yeah Patrick--those wonderful polluters deserve a break! Let all the great industries of our great free market blithely give us poor slobs more cyanide, mercury, lead, and every other toxin that stands between them and more profits. No regulations!