The development and recent commissioning of Barrick Gold Corporation’s Cortez Hills mine, located in Lander County south of Battle Mountain, demonstrates the significant time, study, consultation and permitting that are required to develop a modern mine in the state of Nevada. A proposed mine must investigate and define pre-existing environmental and social conditions, study the potential positive and negative impacts that may result from development of the mine, explore and address the concerns of the public and various regulatory agencies, and identify methods and strategies to overcome potential negative impacts on the environment and communities.
Mining in the Cortez Mountains area goes back to the 1860s, with a focus on silver and later underground and open pit gold mining. More recent exploration over the past two decades identified several large gold deposits, including Pipeline (discovered in 1991), Pediment (1998), and Cortez Hills (2002). Mining began at Pipeline in 1996, and in 2001 a decade-long permitting process began, initially for underground mining at Pediment, and later incorporating a plan for open pit and underground mining of both Pediment and Cortez Hills. This process led to the commissioning of Nevada’s newest large scale mine and the first simultaneous startup of both open pit and underground mining operations at a mine property in Nevada. The mine uses a combination of nearby existing facilities and new heap leaching sites to process gold bearing ore.
The immediate economic benefits of the mine are clear: at a time when Nevada faces significant state budget shortfalls, unemployment, and other effects of the economic recession, the company invested $500 million to construct the mine and infrastructure as well as millions of dollars in exploration, permitting and other costs, and now employs over 500 additional workers with an annual operations payroll of over $46 million. The mine’s local purchases are estimated to be in the range of $150 million per year, generating $10 million in annual sales taxes for the local counties, in addition to increased net proceeds and property taxes. This new mining activity also results in the creation of hundreds of additional jobs in the local economy associated with the purchase of goods and services utilized by the company and its employees. For example, at the peak of mine construction there were over 400 contractors working on site. It is anticipated that the Project will provide these employment opportunities and other economic benefits through 2018. Additionally, revenue generated by the mine is utilized to fund exploration and expansion at Barrick’s other sites in Nevada, contributing to long-term economic growth.
Along with the benefits provided by the jobs, purchases and tax revenue, however, mines inevitably have some negative impacts. The mine design, planning and permitting processes include programs to identify, minimize, mitigate and offset those impacts, in large part through developing an Environmental Impact Statement (EIS), and by engaging with a variety of stakeholders including state and local government agencies, residents, local businesses and others.
In the case of Cortez Hills, Barrick Gold worked with the Bureau of Land Management (BLM) as the lead regulatory agency for the project and Federal manager of most of the land required for the project, as well as the Nevada Department of Wildlife (NDOW). The company also consulted with local communities and technical experts to evaluate potential impacts on a wide range of areas, from effects on water resources and air quality to wildlife, vegetation, cultural resources and socio-economic conditions. The EIS for the mine took three years to complete, from 2005 through its approval by BLM in late 2008.
The process of preparing an EIS involves public hearings and accepting public comments. For the Cortez Hills project, the BLM began public consultation in 2005, including conducting two public hearings on the Draft EIS in local communities in 2007 and receiving over 6000 letters and postcards during the Draft EIS public comment period. The comments, concerns and opinions identified through these consultation efforts were addressed in the Final EIS. The BLM’s Record of Decision on the EIS indicates a finding that the Cortez Hills mine is a legitimate use of the public lands and that it will be developed in an environmentally sound manner, with integral monitoring and mitigation measures that will prevent unnecessary or undue degradation of public lands. Other key regulatory approvals for the project included a detailed Plan of Operations and a Reclamation Plan.
During the evaluation and consultation process leading to approval of the project, the company committed to a series of management practices and design components, developed in collaboration with the BLM, NDOW and stakeholders, to mitigate or eliminate the potential impacts identified. These include:
» Impacts on surface and ground water resources are minimized through operating the leach pads, mill and tailings ponds as zero discharge facilities incorporating water recycling, the use of infiltration basins to return surplus water from mine dewatering operations to the groundwater system, and by developing or enhancing offsite wetlands to offset any loss of wetland area due to the new mine. In addition, a comprehensive surface and ground water monitoring and reporting program has been implemented to ensure early detection and mitigation of any unforeseen impacts.
» Incorporation of state of the art technological controls on air emissions meeting the requirements of the Nevada Mercury Control Program and designed to remove mercury from the processing system before it can be emitted into the atmosphere.
» A number of previously existing impacts are being addressed, including reclaiming or removing several old mine sites as part of the operation and closure of Cortez Hills. Additionally, the company is reforesting hillsides that were logged in the 1800s and removing some historic industrial equipment from the project area.
» A variety of efforts have been put in place to address wildlife impacts, including the above-mentioned wetlands development, installing wildlife overpasses on the site’s conveyor system, installing protective fencing and covers on mine ponds and solution trenches to prevent bird and wildlife fatalities, and ongoing monitoring for potential impacts on birds, especially raptors, migrating and nesting species, and other animals.
» Salvaging and stockpiling topsoil and other suitable growth media for later use in reclamation and reestablishment of vegetation in areas where mining has been completed. All disturbed areas will be reclaimed and revegetated as soon as practical through concurrent reclamation, and revegetated areas will be fenced to protect against livestock until the vegetation is re-established. Final reclaimed landforms will have a varied and natural appearance which blends with surrounding topography.
» Rerouting and upgrading a local road utilized by local residents at a cost of $15 million.
» Supporting local tourism by protecting, monitoring and enhancing the nearby historic mining ghost town of Cortez, including installing informational kiosks at the site of both the modern and historic mines and the historic town site.
» Establishing a reclamation bond of $87.5 million dollars for reclamation of surface disturbance and project facilities and an archaeological bond of $1,4 million dollars. The level of reclamation bonding will be reviewed every three years to ensure adequacy.
» Installation of protective fencing to prevent livestock access, and placement of watering troughs outside these fences to discourage livestock from trying to access water in the mine operations area.
» Siting of facilities to avoid disturbing the sites of historic Shoshone villages and areas of cultural and religious importance, and maintenance of access to traditional use areas for tribal members.
The company also began to consult with local residents and other stakeholders in the early years of the project about potential positive and negative impacts, and opportunities to maximize the net positive benefit of the project. This consultation process continued through the mine’s three-year development period and commissioning in 2010, and a proactive stakeholder engagement program will continue throughout the life of the mine.
Perhaps most significantly, Barrick has engaged extensively with regional Western Shoshone communities to better understand their cultural and historical traditions, address their concerns about the project and offer participation in the project’s benefits. The company has made a commitment to discuss and consider any issue that may concern the Western Shoshone community. Dialogue partners include members of the Tribal and Band Councils of the Western Shoshone who have been elected by their members to represent their interests. These forums provide a constructive process for raising awareness, sharing ideas and helping to create an environment of trust and partnership.
In late 2008, Barrick signed an historic Collaborative Agreement with leaders of four Western Shoshone tribal groups to improve education, business and employment opportunities for the Western Shoshone, enhance awareness of Native culture and to build greater mutual understanding. The Collaborative Agreement also established the independent Western Shoshone Educational Legacy Fund, with funding coming directly from the revenue generated by the Cortez Hills mine. The Fund currently amounts to approximately $1 million (January 2011), and is expected to increase to $7-10 million over time. The Fund provides scholarship grants for 50-60 Western Shoshone every semester, and will provide financial support for generations of Western Shoshone seeking higher education. Any adult Shoshone is eligible to apply for these scholarships, and the Fund is managed by a Board of Trustees which includes representatives from all of the Western Shoshone tribal groups.
In 2009 two activist organizations, a Nevada Shoshone tribal group and a group from California, sought an injunction to stop the project after the BLM’s approval, alleging that the agency failed
to fully consider all impacts of the Cortez Hills project. After review of relevant factors, this request was denied by a U.S. District Judge. A subsequent appeal by these groups to the Circuit Court of Appeals resulted in an agreement by Barrick and the BLM, under a limited injunction, to complete additional environmental analysis related to the project in a Supplementary Environmental Impact Analysis (SEIS). This limited injunction allowed the mine to be constructed and operated as planned. This partial injunction was lifted in early 2011 after the SEIS demonstrated that the project had incorporated the proper steps to mitigate environmental impacts.
These efforts to engage with and meet the needs of local communities and the environment are a vital part of developing any mine in Nevada today. By respecting and working with communities and other stakeholders, mining offers significant benefits that can be widely shared.