Midas Gold can start cleanup efforts at Idaho mine

The Canadian company that wants to reopen and expand an open-pit gold mine in central Idaho while also cleaning up the heavily polluted site has been given the green light to begin some of its proposed restoration work.

Midas Gold also said it plans to relocate its corporate headquarters from Vancouver, British Columbia, to Boise and is exploring becoming an American company.

The company reached an agreement with the U.S. Forest Service and Environmental Protection Agency on Friday that allows it to start removing polluted material and addressing long-standing water quality problems at the Stibnite mine along the East Fork of the South Fork Salmon River. The company, however, won’t be able to start mining operations unless it completes a yearslong process to win the necessary permits. Still, company officials looked at the agreement as a positive milestone, according to a news release.

“While we did not cause the problems impacting water quality today, we have always been clear on our intentions to be a part of the solution,” said company CEO Laurel Sayer. “We know redevelopment of the Stibnite Mining District for mining activity must include restoration of legacy features. So, when we saw the need to address sources of water contamination more quickly at Stibnite, we knew we had to offer our help.”

Mining at Stibnite dates back to the 1930s, and the site was active during World War II, before modern environmental standards were adopted. Previous mining companies left behind a legacy of toxic pollution and damage, which includes an open pit that the East Fork of the South Fork Salmon River flows into. Threatened chinook salmon, steelhead and bull trout are not able to pass above the pit to access spawning grounds.

The company estimates it can recover as much as 4 million to 5 million ounces of gold, 6 million to 7 million ounces of silver, and 100 million to 200 million pounds of antimony. The mine would employ as many as 500 people and create other jobs in the region during its proposed 20-year lifespan.

The company wants to extract gold from old tailings piles at the site and from areas that have not been disturbed and invest some of the profits into cleaning up past pollution. It is proposing to remove barriers to fish, fix sedimentation problems, and remove tailings and other waste that contribute to water quality problems there.

Mckinsey Lyon, vice president of external affairs, said the agreement allows the removal of 325,000 tons of waste and the rerouting of streams away from polluted areas. That first phase of the work could begin as soon as this spring. Additional phases are contingent on the company securing permits to mine the area.

Critics claim reopening the mine could bring even more damage to the watershed despite the company’s stated intention of restoration. The Nez Perce Tribe is suing Midas Gold and seeking to force it to acquire National Pollution Discharge Elimination System permits for the property. The tribe contends the company is discharging water polluted with arsenic, cyanide, mercury and other heavy metals into tributaries of the South Fork Salmon River.

Tribal Chairman Shannon Wheeler said Friday the agreement with the federal agencies is “stunningly inadequate” and will fail to properly restore the site. Instead, he said the material the company will be allowed to move amounts to preparation for future mining.

“Most of the cleanup actions are contingent on the approval of the company’s mining project, are entirely optional, and are based on protracted timelines that unreasonably delay cleanup. The only mandatory actions required by the settlement agreement do not provide anywhere near the robust, comprehensive, and site-wide cleanup needed and which Midas Gold, in numerous public statements, has promised,” said Wheeler. “(Friday’s) action is simply a gift from the outgoing administration to Midas Gold.”

The tribe has reserved rights, enumerated in its 1855 Treaty, to harvest fish within its historic territory, which includes the site east of McCall and near the tiny community of Yellow Pine. It also spends about $2.8 million per year in fish restoration activities in the South Fork Salmon River drainage, and its members continue to fish there.

Barker may be contacted at ebarker@lmtribune.com or at (208) 848-2273. Follow him on Twitter @ezebarker.