The Crested Butte News Serving the Gunnison Valley since 1999
Mining execs planning trip to the site
by Mark Reaman
Executives of the Mount Emmons Mining Company (MEMC) and Freeport McMoRan, owners of the molybdenum mining rights on Mt. Emmons west of Crested Butte, will be in town at the end of July to look over the site. Several representatives of MEMC plan to tour the wastewater treatment plant and analyze the mining claims and the property now owned by MEMC.
Last February, MEMC, a wholly owned subsidiary of global mining giant Freeport McMoRan, stepped in and acquired U.S. Energy, the longtime permit holder and owner of the mining rights on Red Lady. Freeport was connected to the mine through a previous acquisition of a mining company that had owned and operated the site. That connection put some potential federal liability on Freeport for water quality and other issues associated with the site. When U.S. Energy appeared to be in deep financial trouble, Freeport stepped in last winter to quickly acquire the site and its assets.
A Memorandum of Understanding (MOU) was signed in February by the mining company, the town of Crested Butte, Gunnison County, and several state regulatory agencies.
Ultimately, the company said its intention was to not mine the site, look for efficient ways to treat the water coming through the site, improve the water quality in Coal Creek and work toward a permanent solution to end the idea of mining Red Lady.
At the time, all involved expressed great optimism but noted that the “heavy lifting” would take some time. That time began in February and is continuing today.
The town of Crested Butte, Gunnison County and the representatives of the state and feds have been communicating regularly to keep the process moving forward. Detailed maps are being drawn to show the extensive holdings that came with the acquisition. The holdings include patented and unpatented mining claims, fee simple property, lode claims, millsite mining claims, placer mining claims, and even tunnel site mining claims for underground holdings.
It is a complex web of real estate holdings that stretch from just outside Crested Butte, up and over Ohio Pass, and to some ranch property in Carbon Creek and Alkali Basin behind Whetstone. The Trust for Public Lands is being consulted about facilitating preservation of some of the more prominent pieces. As for the minerals, the idea of an administrative or legislative mineral withdrawal is being broached.
According to Crested Butte town attorney John Belkin and Gunnison County attorney David Baumgarten, getting MEMC company representatives on the ground to see exactly what it is they own will be a big step to coming up with a complete plan to end the idea of mining on the Red Lady.
“There are five main priorities right now,” said Baumgarten. “First is making sure the water treatment plant is running and the water is being treated. Second is getting them in here to physically see the site. Third is making sure we are all working toward developing site-specific water quality standards for Coal Creek that may include monthly technical meetings with interested stakeholders. Fourth is dealing with the complex real estate holdings and transition of the claims and property. And finally, fifth is a mineral withdrawal that we may have to take to the United States Congress.”
Belkin said while there is a “trust but verify” attitude between the government entities and the mining company, the fact is the talks have been very positive and a collaborative attitude remains between everyone involved.
“We have been talking regularly and we all seem to still be on the same page,” Belkin said. “I think it will be very beneficial to get them up here to actually see the site and listen to their ideas. They have talked about doing some new things with the treatment plant, for example. Everything at this time appears to heading in the right direction.”
First, executives of the Mount Emmons Mining Company want to get their feet on the ground and see with their eyes what is actually owned by the company. That will happen in the next few weeks.
