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Newmont officials reacted with what can be described as cautious optimism to West Wendover and Wendover, Utah’s comments to the BLM.
“Newmont respects the BLM process for soliciting comments on all of our projects including Long Canyon. All interested parties, including the Cities, are encouraged to provide comment and we appreciate their input. Regarding specifics in the Cities’ letters, Newmont had previously relocated facilities based on input from the Cities and the agencies. Nonetheless, the BLM is required to evaluate environmental impacts from the proposed action and from other alternative suggestions. We would anticipate that the BLM will evaluate an alternate siting of some of the facilities to determine the environmentally preferred alternative location. This is the natural and standard part of the NEPA permitting process.” Said Mary Korpi, Director External Relations Environmental and Social Responsibility Department. “In the letters the Cities also come to certain conclusions based on the limited information that they had regarding hydrology. We look forward to a robust independent analysis of the facts and science to thoroughly define the hydrology and to develop more conclusive decisions that will be an outcome of the BLM process. We also look forward to continued discussions with the Cities as well as a thorough and timely environmental review by the BLM. Newmont is very excited about developing the Long Canyon ore body and the social and economic benefits that will come from this new mining operation.”
“Hydrology studies are underway but are far from complete. Hydrologists from the cities and from Newmont had been working collaboratively on data collection. As with any body of science, more information will lead to a better understanding and less uncertainty. We look forward to the completion of more hydrology investigations which should give all of us more confidence in any conclusions.” Korpi added.
The sister cities comments were part of the National Environmental Protection Act (NEPA) that mandates environmental studies on any large development project such as the Long Canyon Mine.
The process which takes a minimum of two years includes public hearing in all the communities that could be affected by the project as well as a preparation of an Environmental Impact Statement (EIS).
Potentially important than the comments however was the statement made by West Wendover Mayor Donnie Anderson that from now on he and Wendover, Utah Mayor Mike Crawford would take a much more active role in the negotiations with Newmont and the Wendover Water Working Group.
Three weeks ago Newmont rejected out of hand a list of demand issued by the group as a nonstarter.
Apart from asking for an annual half a million dollars in cash from the mining company for the life of the mine, the Group also asked the company to fund the search and development of new water sources, guarantee the loan of the Johnson Spring Pipeline and various other demands.
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According to Korpi the company’s engineers estimated price tag for the entire laundry list was pegged it at around $40 million. Newmont’s figure is within shouting distance of the Working Group’s own estimated at just under $30 million according to sources.
But even the lower figure is considered a non starter by the mining company.
“I don’t know why but a lot of cities don’t get the fact that private enterprise has to turn a profit,” said an real estate developer the Advocate asked to examine the Working Group’s Proposal. “These demands make the project unprofitable that is why the company dismissed them. From what I understand they were so far out in left field that there is absolutely no common ground to negotiate from. The Water Working Group probably lost all credibility with Newmont as a serious partner.”
“Newmont was surprised on Friday, June 22, when we received a detailed proposal regarding a variety of financial and non-financial considerations under which the Cities would be the beneficiary.” Korpi said.
“From now on Mayor Crawford and I will be a part of the negotiations,” Anderson said. “And no one is going to send a proposal in with my name on it that I haven’t seen.”
