Oregon’s new policies threaten halt to mining activity

Several mining companies active in Oregon are reported to have abandoned plans to develop gold mines in the state because of new environmental policies that will treat all mine operations using cyanide as if they were a hazardous waste disposal facility.

The Northwest Mining Association (NWMA) said the policies adopted in early November by the Oregon Environmental Quality Commission (EQC) are much more strict than federal policies which set provisions to ensure mine wastes are managed safely without expenses that would put mines out of business. John Parks of the Oregon Mining Council said while mining companies are ready to meet “stringent but practicable” regulations, the Oregon policies would render any mine project uneconomic.

“I am very disappointed that the EQC has seemingly ignored all our concerns, especially since both Governor Roberts and the legislature are on record as not wanting regulations so burdensome that the mining industry would be driven out of the state,” Parks said.

Ivan Urnovitz, NWMA’s manager of governmental affairs, is of the view that the EQC caved in to demands of environmental extremists who called for a ban on gold mining in Oregon.

And he said several of the four or five gold mining companies taking a serious look for gold mining sites have abandoned their plans, “because of the state’s unreasonably strict attitude on environmental regulations.” These mines, expected to be developed by the turn of the century, would have brought jobs and economic benefits to the eastern part of the state which is suffering from a depressed economy. Many parts of the state are also being affected by a downturn in forestry, and increased environmental opposition to that industry.

Urnovitz told The Northern Miner that a number of mining companies, including majors, recently decided to abandon plans to continue work on various exploration prospects in the state. He said the new policies will serve to entrench the view that Oregon is “not pro-development,” and continue to drive away new investment.

Dave Barrows, counsel for the Oregon Mining Council, said the policies ignore both the letter and intent of HB 2244 passed by the Oregon legislature in the last session.

“I can’t see that they are leaving mining companies, which have been dealing in good faith throughout this entire process, much choice but to either get out of the state or litigate.”

The Northwest Mining Association is continuing efforts to have the policies reconsidered before final rulemaking, and is still awaiting a response from the governor’s office.