Legislature(2005 - 2006)CAPITOL 124
04/27/2005 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HCR10 | |
| SB144 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HCR 10 | TELECONFERENCED | |
| + | SB 144 | TELECONFERENCED | |
| + | TELECONFERENCED |
HCR 10-SUPPORTING KENSINGTON GOLD MINE 1:10:23 PM CO-CHAIR RAMRAS announced that the first order of business would be HOUSE CONCURRENT RESOLUTION NO. 10, Supporting the development of the Kensington Gold Mine. 1:10:30 PM CO-CHAIR SAMUELS moved to adopt the committee substitute for HCR 10, labeled 24-LS0925\F, Bullock, 4/21/05, as the working document. There being no objection, Version F was before the committee. JIM POUND, Staff to Representative Jay Ramras, Alaska State Legislature, presented HCR 10 on behalf of the House Resources Standing Committee, sponsor by request, which is co-chaired by Representative Ramras. Mr. Pound explained: [House Concurrent Resolution] 10 is a support resolution for the Kensington Gold Mine, which is located north of Juneau. They're in the final stages right now in their permitting process, and this resolution will help with that final permitting process. Once the permitting process is complete, Kensington will hire approximately 300 construction workers in order to build the mine. After that, approximately 225 people will be in long-term employment within the Juneau area. The company Coeur Alaska does have a reputation for local hire and working within the local regions of where they do build their mines. So far they have spent over $150 million just on development, permitting, and going through the legal process of preparing Kensington Gold Mine for what they hope to be a groundbreaking some time in the month of July. Again, this passage of this resolution will show that the legislature, along with the other supporters that you have in your packets supports the improvement and increased mining operations throughout the state. 1:11:57 PM REPRESENTATIVE GATTO asked if the $150 million also included equipment purchases. MR. POUND deferred that question to a Coeur Alaska representative. REPRESENTATIVE GATTO asked if any gold has been removed yet. MR. POUND replied no. 1:12:51 PM RANDY MCGILVERY, Environmental Manager, Coeur Alaska, thanked the committee for introducing the resolution. He said that the company has been in support of this bill for over 15 years, during which they have "done an extensive job of public communication and consultation involving all of the special interest groups and stakeholders in the region." He commented that the company is looking forward to starting the project this summer. 1:14:15 PM REPRESENTATIVE GATTO asked if there are 1 million ounces of gold in the mine. MR. MCGILVERY answered, "Yes.... Our annual production will be 100,000 ounces per year. So we're projecting 10 years of operation at this time." REPRESENTATIVE GATTO asked if the mine would close in 10 years. MR. MCGILVERY answered that the mine would close unless the company could develop future reserves. REPRESENTATIVE GATTO asked if the company would mine anything other than gold, such as silver or platinum. MR. MCGILVERY responded that it is a pretty unique deposit of only gold. REPRESENTATIVE GATTO asked, "How much it would cost to produce a single ounce: a couple hundred dollars?" 1:15:10 PM MR. MCGILVERY replied that this was correct, and the current price for gold is over $400 per ounce. REPRESENTATIVE GATTO calculated that Coeur would expect a profit of about $1 million. He asked if the ore would be moved by a barge. MR. MCGILVERY answered, "We'll be producing a concentrate. ... So 100 percent of the ore goes to the mill: 95 percent of that material goes to the tailings impoundment, 5 percent of that material is produced as a concentrate, and that goes off site to a smelter." REPRESENTATIVE GATTO asked if the tailings will be considered environmental waste. MR. MCGILVERY responded: One of the things that's extremely important to know about the project is that in the flotation process, all of the metals, including the gold, are extracted from the ore. So all that's left, essentially, is beach sand. It has a lower concentration of metals than the natural surrounding environment. It's so important for us to nail the flotation process and extract all the metals out. REPRESENTATIVE GATTO asked if a chemical is used in the flotation process. MR. MCGILVERY answered that the chemical used is made of organic polymers that degrade naturally in the impoundment. REPRESENTATIVE GATTO asked [how long it takes for the organic polymers to degrade]. 1:16:33 PM MR. MCGILVERY answered that the process water is liberated from the tailings through consolidation. As the tailings consolidate over time, more and more of the process water comes out of the tailings. He said that 90 percent of the consolidation occurs in five years, and total consolidation is complete within 20 years. REPRESENTATIVE GATTO asked if there are any other mining activities within 10 miles of the proposed mine. MR. MCGILVERY replied that the closest mine is the Kennicott Greens Creek mine on Admiralty Island. 1:17:33 PM REPRESENTATIVE RAMRAS asked, "Can you speak, briefly please, to the philosophy that Coeur Alaska has toward paying its fair share in taxes to the State of Alaska?" MR. MCGILVERY replied that he is the environmental manager and cannot answer that question. 1:18:03 PM CO-CHAIR RAMRAS closed public testimony. 1:18:16 PM REPRESENTATIVE ELKINS moved to report the committee substitute for HCR 10, labeled 24-LS0925\F, Bullock, 4/21/05, with individual recommendations and the accompanying fiscal notes. There being no objection, CSHCR 10(RES) was reported from the House Resources Standing Committee.
| Document Name | Date/Time | Subjects |
|---|