At the Bottom of the Eagle Mining Venture: A very rich orebody, politics, lies, and a gigantic fraud

By Jack Parker, mine engineer and geologist | March 17th, 2014

The presence of an extremely rich orebody has been proven by thousands of feet of diamond drilling. Of that there is no doubt. An early estimate for the value of the minerals contained was around 4.7 billion dollars.

Kennecott presented their application for permits to mine in 2006. Copies of the document are available. Make sure that you do not get a modified version. With Stan Vitton, Mining Professor at MTU, I, Jack Parker, Mining Engineer and Geologist (resume on-line) was hired by National Wildlife Federation (NWF) to evaluate and report on the mining, geological and rock mechanics sections of the application.

Within a few weeks we recommended that the application be returned to sender as unacceptable. We could not believe that it had been prepared and proffered by professionals. It had not even been proofed for typos. Technically it was incomplete and incompetent, as if prepared by high school students. The regulating agency, the Michigan Department of Environmental Quality (MDEQ), did not reject it, despite a similar evaluation by their hired expert, David Sainsbury, of international consulting firm Itasca, who summed up by saying that the conclusions in the application were not supported by fact.

Stan and I continued to evaluate the proposed Eagle project after the funding had run out – I still do, after eight years. Within a year we had clear proof that the original data from the diamond-drilling had been tampered with, rather crudely, before submitting to mine designers and planners – to make the rocks and the plan look good and acceptable. The truth is that if the data input is corrected, the same plan shows a safety factor lower than 1.0, indicating probably instability of the mine structure as planned.

Instability, hence endangerment to life and limb and property and environment, is obviously not acceptable, yet MDEQ does not recognize it. They ignore it.

There is no provision for simply erasing errors and doing things differently. Part 632, the legislation governing nonferrous mining in Michigan, states that a person presenting false information in the permitting process, or knowingly accepting it, is a felon and should be prosecuted accordingly. Amendments can be submitted but they must be processed thru the initial permitting procedures – including public input.

MDEQ accepts “amendments” without public input. The Humboldt Mill must be full of them.
A legal problem is that – not many years ago – the Environmental Protection Agency (EPA) delegated jurisdiction on mining regulations to MDEQ – and MDEQ now finds themselves inextricably in bed with Kennecott and their successors – as felons. I have pursued the matter with all offices of justice from local cops and all the way to the US Attorney General, and all decline to prosecute this 4.7 billion dollar fraud – “having no jurisdiction.” More clever politics.

The longer the process is drawn out – the worse it gets. As far as I am concerned the details, such as water quality “exceedances”, will go away. At present they constitute a mild digression helpful to the criminals.

All I ask is that we check the application with a group of mining professionals, declare it illegal and fraudulent, then enforce the Michigan law – which is also available online.
Check page 14 (4) of Part 632.

Letter to Chairs of Natural Resources Committee regarding CR 595

Via Telefax delivery:

March 20, 2013

The Honorable Richard “Doc” Hastings
Chairman, Natural Resources Committee
1203 Longworth House Office Building
Washington, DC 20515
Fax: (202) 225-5929

Waves crashing on the rocky shoreline by Jacob Emerick

The Honorable Edward J. Markey
Ranking Member, Natural Resources Committee
2108 Rayburn House Office Building
Washington, DC 20515
Fax: (202) 225-4273

Dear Chairman Hastings and Ranking Member Markey:

We write regarding the upcoming testimony of Mr. James Iwanicki, Engineering Manager of the Marquette County Road Commission. Mr. Iwanicki is scheduled to provide testimony at a hearing on “America’s Mineral Resources: Creating Mining and Manufacturing Jobs and Securing America.” His testimony is slated to take place this Thursday, March 21, 2013, before the Subcommittee on Energy and Mineral Resources (Committee). We also ask that you allow the voices of those whose homelands are being sacrificed in the name of foreign mining companies currently operating in an irresponsible and unsustainable manner in the Upper Peninsula of Michigan to be heard.

Collectively, we are members of a federally recognized Indian tribe, former resource extraction industry regulators, and environmental advocacy groups made up of many of the more than 200 practicing physicians, clergy, property owners, workers, residents, and frequent visitors of the Upper Peninsula who oppose irresponsible mining activities currently underway. Many of us provided testimony and written comments describing our concerns and made recommendations for the proposed mine haul road that Mr. Iwanicki is slated to testify about before the Committee.  Unlike Mr. Iwanicki, whose responsibilities are limited to road maintenance and construction in Marquette County, Michigan, we are prepared to provide the House Natural Resources Committee or any of its subcommittees, with a concise description of the unsustainable practices that threaten our resources, including treaty protected tribal trust resources, our environment and our way of life.

We expect that the testimony provided Mr. Iwanicki will downplay the relationship of the road to Rio Tinto’s operations and that the Committee will be told that the road would enhance safety, recreation and “economic benefits for county residents.” Because Mr. Iwanicki’s responsibilities are limited to roads there are many aspects of this debacle of which  the Committee will not be apprised. Many are directly related to the primary purpose of the hearing. Mr. Iwanicki is likely unprepared to talk about the impacts this proposed road would have had to National Wild and Scenic Rivers, the McCormick Wilderness, and the health and way of life of the people who work, live and recreate in this area. This is the case because there was no environmental impact statement prepared for the road project. This was possible only because Rio Tinto, which claimed that it would fund the road entirely but only if the project could be permitted within a truncated timeframe that did not allow for the analyses required by federal law.

We believe that Mr. Iwanicki will inform the Committee that he was operating under a budget set by Rio Tinto and under a timeline set by Rio Tinto. We urge the Committee to question Mr. Iwanicki accordingly and specifically ask for an explanation that reconciles the obvious elimination of any use of federal transportation funds to avoid National Environmental Policy Act (NEPA) requirements with the exclusive use of Rio Tinto funding. It’s only reasonable to conclude that if the project has all of the benefits that Mr. Iwanicki will tell the Committee it has, using some federal transportation funds would be acceptable. This however was impossible for Mr. Iwanicki as a result of Rio Tinto’s arbitrary time limit. By setting the timeline and funding limitations Rio Tinto simply made it impossible to incorporate mitigation requirements to fulfill the Clean Water Act’s wetlands protection mandates. Rio Tinto maintained control over the project Mr. Iwanicki was charged with managing. It’s important to note that Mr. Iwanicki only became the manager of this proposed project when Rio Tinto’s own road proposal failed to meet these same federal requirements. The failure here is not EPA’s, but Rio Tinto’s failure to recognize and comply with federal environmental protection laws.

Because the proposed road was primarily for the purpose of avoiding traffic problems associated with Rio Tinto’s mining activities, there are literally dozens of substantive natural resource related issues and legal concerns that Mr. Iwanicki will not relate to the Committee. For example, Mr. Iwanicki is not likely to tell the Committee that while Rio Tinto touts the use of health impact assessments through its role as a member of the International Council of Mining and Metals, none has been prepared for any of the activities Rio Tinto has conducted in the Upper Peninsula of Michigan. The Natural Resources Committee also will not learn how Rio Tinto obtained permits from the State of Michigan to construct and operate a hard rock mine with insufficient financial responsibility assurances in place as EPA fails to complete its rulemaking to address the inability of our government to continue to clean-up the millions of pounds of toxic chemical releases to our environment from these mines each year. Mr. Iwanicki will surely not explain the regulatory fiasco at Rio Tinto’s Eagle mine where a State of Michigan ground water permit is the only thing in place to regulate up to 504,000 gallons of industrial mine water discharges that Rio Tinto itself told the EPA were “not discharged below the surface of the ground.” Additionally, we are very certain that Mr. Iwanicki will not tell anyone at the hearing that State of Michigan water program technical staff who worked on Rio Tinto’s Eagle mine permits and the Governor of Michigan’s Upper Peninsula District Manager who had a very significant role during the permitting process are now on Rio Tinto’s payroll and working at the Eagle mine.

Through his testimony, we expect that Mr. Iwanicki will explain how the U.S. Environmental Protection Agency (EPA), through what has been described by our Congressional representative as “regulatory overreach,” eliminated employment opportunities in the Upper Peninsula of Michigan. We believe Mr. Iwanicki will testify that EPA’s “overreach” occurred in conjunction with a road construction project called County Road 595. Further, it is our understanding Mr. Iwanicki will state that EPA’s refusal to withdraw objections pursuant to provisions of the Clean Water Act that are in place to protect wetlands constituted this alleged “overreach.” We assure you that EPA’s decision to exercise its authority and follow the provisions of the Clean Water Act were not only completely appropriate – but long overdue and sought after by the citizens of the area likely to be impacted by the proposed road. To be clear, the proposed road was initially designed to address concerns related to the transportation of ore on existing roads from Rio Tinto’s Eagle mine, currently in the final stages of construction. Had EPA properly exercised its authority it would have required or prepared an Environmental Impact Statement, which EPA has the discretion to do. Through that process, issues involving the transportation of ore from the Eagle mine and other mines currently being proposed could have been addressed. Unfortunately, Rio Tinto, through extensive lobbying and other actions, set out to eliminate any and all federal environmental regulatory oversight of its activities. If one seeks to find blame with any aspect of mining and its ancillary activities in the Upper Peninsula of Michigan they would be prudent to look carefully at the actions taken by Rio Tinto.

The regulatory failures associated with recent mining activities in the Upper Peninsula are monumental. Conflicts of interest, inadequate financial assurances, catastrophic technical mistakes, inadequate and insufficient scientific and environmental analysis, significant lack of experience among technical staff employed by State and federal regulatory agencies, complete absence of cumulative impact assessments and more, all are certain to contribute to a situation where we will see a net reduction of jobs in the resource extraction industry. This does not have to be the case and we are prepared to explain this situation to the Natural Resources Committee in full measure. While they operate with breathtaking arrogance and an unfounded sense of entitlement, these companies continue to avoid public debate regarding the manner in which they operate. We hope you agree that respectful and informed debate is the American way to create jobs through responsible and safe development of our natural resources.

In closing, please know that we have placed our trust in your abilities and integrity, and we seek only to remain confident that the Natural Resources Committee will not make decisions that forsake the laws and federal trust responsibilities of the United States. Please feel free to contact us if you believe we can be of service to the House Committee on Natural Resources.

Sincerely,

Gene Champagne
Concerned Citizens of Big Bay
Big Bay, Michigan

Jeffery Loman
Member, Keweenaw Bay Indian Community
L’Anse, Michigan

Emily Whittaker
Executive Director, Yellow Dog Watershed Preserve
Big Bay, Michigan

Margaret Comfort
President, Save the Wild U.P.
Marquette, Michigan

Catherine Parker
Marquette, Michigan

Richard Sloat
Iron River, Michigan

Cc:
Congressman Douglas Lamborn, Chairman, Subcommittee on Energy and Mineral Resources, Via fax: (202) 226-2638
Congressman Rush Holt, Ranking Member, Subcommittee on Energy and Mineral Resources, Via fax: (202) 225-6025
Congressman Daniel Benishek, Member, Subcommittee on Energy and Mineral Resources, Via fax: (202) 225-4710

Analysis: Rio Tinto’s Permit Modifications

By Cynthia Pryor

The main and substantive issue, in the new Air Quality permit application for the Rio Tinto Eagle Mine, is Rio Tinto’s assertions that an air emission control is not required for the Main Air Raise Vent (MVAR). The MVAR is a stack that is 128″ (10.6′) in diameter and 65′ high and is the only vent for all the underground workings for the mine. The emissions will include all those items associated with the development and retrieval of the ore body including blasting, ore handling, truck traffic, diesel fuels, large mine heaters, etc. Rio’s original Air Quality Permit was approved with the inclusion of a Bag House and air filter on this MVAR stack – that would capture 99% of all emissions which would include reactive sulfides resident in and broken loose from this ultramafic massive sulfide ore body.

Rio Tinto has reconfigured their plant so that they have moved the original underground cement batch plant and associated material silos (aggregate, cement) to the surface near Eagle Rock. They say there will be no crushing underground and an ore pass system will not be utilized – therefore reducing sulfide dust and emissions to such a low level that a bag house would no longer be required. In fact they say that a bag house would not even function properly – the emissions are so low. They will instead control all underground dust with water spray from a tank truck and and a hose.

All of Rio’s assumptions are based on modeling programs, heater systems whose emissions are exempt from regulation, and the assertion that will be able to control all dust with water spray from a hose. The DEQ does not require them to have controls on this huge MVAR stack, even though there will be controls on every other emission source at the mine, including an emergency generator. The DEQ does not require any air quality monitoring of the site or of this stack. Emission testing of the stack will only take place when Rio Tinto is producing 1,660 tons of ore a day. The DEQ will not require any emission testing during the blasting of adits or production of ore under this tonnage rate. Sulfide, heavy metals, blasting emissions, fuel emissions, etc. will be free flowing into the air on the Yellow Dog Plains with no control, no monitoring, and very limited testing.

The DEQ calls the Yellow Dog Plains an attainment area – which is a geographic area which has air quality below Federal Air Quality Standards. In other words, the air is good on the Plains and Rio has now the ability, under law, to pollute this air until they reach the limit of the air quality standard set by the EPA. Their models show that they can do this at 91% of the attainment level. That leaves 9% left for someone else to pollute to get them at a Saginaw, Detroit Chicago level of Air Quality. These emissions are only representative of the mine area itself. All diesel emmisons and fugitive dust from the transportation of the ore on public roads are not included in this emission standard calculation. The DEQ says they have no regulatory oversight of public roads. Nor do they have oversight of the underground workings to prove they can make their claims of low emissions. That is someone else who takes care of that (Mine Safety and Health – MSHA) . The DEQ is only concerned with what comes out of the stack and Rio’s models say they can do it and that is all the proof they need until they do their first production emissions test.

From the beginning, the State of Michigan has recognized that non-ferrous sulfide mining is different and that sulfides, from metallic sulfide mines, released into the environment and coming into contact with air and water can cause Acid Mine Drainage and damage to our land, our waters and our communities. The DEQ Air Quality staff do not seem to see any danger to the Salmon Trout River which flows a mere 150′ from this stack. They have required no impact assessment of the Yellow Dog watershed, nor an impact statement to Eagle Rock – the KBIC sacred site within the fence of this mine. They see no danger to the community of Big Bay and it’s peoples, lake and streams who are an immediate few miles downwind from the Eagle Mine.

Our job is to ask for proof that their models are correct – by demanding air quality monitors at the site that run 24/7 for the life of the mine.
We must also demand that Rio Tinto keep the promise that they made in their original permit (made as a result of public comment and pressure!) to put an air filter on the main polluting source at the site – the MVAR stack. “PROMISES KEPT” is Rio Tinto’s main motto. Let us make them hold to that promise.

 

County board frustrated by mine tax plan

August 21, 2012
By JOHN PEPIN – Journal Staff Writer (jpepin@miningjournal.net) , The Mining Journal

MARQUETTE – Members of the Marquette County Board were angered and frustrated last week after state officials failed to match their revenue expectations for a proposed state severance tax on non-ferrous mining operations, including the Kennecott-Rio Tinto Eagle Mine. Continue reading

DNR chief optimistic on severance tax talks

August 22, 2012
By JOHN PEPIN – Journal Staff Writer (jpepin@miningjournal.net) , The Mining Journal

MARQUETTE – Michigan Department of Natural Resources Director Keith Creagh said that despite current tension and disagreement between state officials and the Marquette County Board on provisions of a proposed severance tax, he’s optimistic the two sides can come to an agreement. Continue reading

Judge refuses to stop work on Eagle Mine

July 26, 2012
By JOHN FLESHER – AP Environmental Writer , The Mining Journal

TRAVERSE CITY – A federal judge has refused to halt construction of a nickel and copper mine in northern Marquette County.

In an order signed Wednesday, Judge Robert Holmes Bell rejected a request by the private Huron Mountain Club to stop work on the mine while the club’s lawsuit works its way to trial.

The exclusive club owns about 19,000 acres of forestland in Marquette County, including an 11-mile stretch of the Salmon Trout River. In May, the club filed a suit claiming the mine would damage the river and nearby wetlands.

The mine’s name recently was changed from Kennecott Eagle Minerals Co. to Rio Tinto Eagle Mine.

State regulators and company officials say the mine can be operated safely. Drilling has begun and mineral production is expected to begin in 2014.

Court Rules Flambeau ‘Model Mine’ Violated Clean Water Act

Court Rules Flambeau ‘Model Mine’ Violated Clean Water Act

The Flambeau Mine near Ladysmith, WI has a long history of controversy due, in part, to the proximity of the mine to the Flambeau River. This photo was taken in September 1994, when heavy rains   caused flooding at the mine site.

 

State Officials Urged to ‘Learn from Flambeau’ and Stop Proposed Mega-Mines in Wisconsin, Minnesota and Michigan

A federal court ruled yesterday that Flambeau Mining Company (FMC) violated the Clean Water Act on numerous occasions by allowing pollution from its Flambeau Mine site, near Ladysmith, Wis., to enter the Flambeau River and a nearby tributary known as Stream C.

The lawsuit was filed early last year by the Wisconsin Resources Protection Council (WRPC), the Center for Biological Diversity, and Laura Gauger. The complaint charged that Flambeau Mining Company (a subsidiary of Kennecott Minerals Company / Rio Tinto) was violating the Clean Water Act by discharging stormwater runoff containing pollutants, including toxic metals like copper and zinc, from a detention basin known as a biofilter. Continue reading

Judge doesn’t rule on mine injunction

Operations at Eagle site continue after matter taken under advisement in Grand Rapids court

June 7, 2012

By JOHN PEPIN – Journal Staff Writer (jpepin@miningjournal.net) , The Mining Journal

MARQUETTE – A federal judge made no decision Wednesday after a roughly three-hour hearing in Grand Rapids on whether to grant a preliminary injunction that would shut down development operations at the Kennecott Eagle Minerals Co. mine on the Yellow Dog Plains, until a lawsuit by the Huron Mountain Club is decided. Continue reading

Supports monitoring

June 5, 2012
The Mining Journal

To the Journal editor:

I am in full agreement with the requests for accurate and independent measurement of air (and water) quality at and around the Eagle projects, including air discharged from the mine.

We know full well that selective sampling can produce inaccurate assessments and wish to preclude that possibility. However, I would like to remind Yoopers that the M departments of Environmental Quality and Natural Resources and the federal EPA are all employed and paid to do those things already. Therefore they must do them, and do them properly or resign their positions and return their salaries and benefits with interest.

There is reason to expect them to choose the latter course of action, since they have not routinely conducted independent sampling and verification of data supplied by KEMC, the regulated business. It behooves them, therefore, to begin to perform those duties immediately and to report the results to the public immediately, in accordance with their stated mission. There is no need to demur or debate. Monday next would be a good time to start, at the portal, when the blast products reach surface.

For demonstrations of effectiveness, as required by Part 632, they could hook up a dozen wood-burning furnaces to a single piped exhaust and sample that too, and simply vent the mine air into the sdministration building, with the media in attendance. Thank you.

Jack Parker, mining engineer

Toivola