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Another hurdle cleared: EPA issues final discharge permit for Kensington mine near Juneau

Release Date: 4/14/1998
Contact Information: Ben Cope
cope.ben@epamail.epa.gov
(206) 553-1442 or 800-424-4372

April 14, 1998 - - - - - - - - - 98-17


FOR IMMEDIATE RELEASE
The proposed Kensington gold mine near Juneau, Alaska, cleared a major regulatory hurdle today when it received a final wastewater discharge permit from the U.S. Environmental Protection Agency.

The permit sets enforceable limits for a number of pollutants that would be included in the Kensington mine's discharges to nearby streams, and requires Kensington to develop best management practices that would reduce water pollution.

The issuance of the permit was announced by Phil Millam, EPA's regional water director in Seattle.

"As important as this permit is for protection of the local environment, Coeur Alaska deserves credit for already reducing the threat to the commercially-valuable fishery resources of Lynn Canal," Millam declared. "Coeur Alaska recognized the toxicity of cyanide to fish, and redesigned the mine to eliminate the use of cyanide at the mine."

Lynn Canal is a natural estuary adjacent to the Kensington mine 45 miles north of Juneau.

Instead of processing ore at the mine, Millam explained, Coeur Alaska will ship the ore concentrate to another location for final gold extraction. Another major design change, prompted by environmental concerns, called for Coeur Alaska to abandon its original plans to dispose of tailings behind a proposed dam on Sherman Creek; instead, the mine will use a "dry" tailings method that will reduce the mine's wastewater discharges of potentially harmful pollutants. "Coeur's design changes not only helped the environment, but the company helped its own objectives by improving public support for the mine project," Millam said. "EPA sincerely hopes that the lessons learned on the Kensington project will encourage other mining companies in Alaska and elsewhere to follow Coeur's example of communicating openly with the public and designing projects with water quality in mind."

In a separate but related decision, Millam said EPA has approved a state revision to its water quality standards for total dissolved solids (TDS) and sulfate at the Kensington mine. Coeur Alaska had indicated previously that it would not be able to achieve the standards. After reviewing a request from Coeur Alaska for a site-specific revision to the standards, the Alaska Department of Environmental Conservation finalized new standards in December and submitted them to EPA for approval.

"EPA applauds the state for doing an excellent job of building a scientifically defensible record for the TDS and sulfate standards," said Millam. "With those standards incorporated into the permit, there will be full protection of Sherman Creek and the other nearby streams, as well as protection of Lynn Canal.

"EPA believes this project has been an example of a good partnership between EPA and the Department of Environmental Conservation to resolve a number of complicated issues."

Millam said that the wastewater discharge permit for the Kensington mine also reflected the work of other government agencies.

"EPA, the U.S. Forest Service and the Army Corps of Engineers rigorously applied permit rules and the environmental impact statement process to this facility. The result is a better understanding of the impacts, an improved project design and a stronger permit.

"EPA's job is not finished. There is a significant work ahead to generate and review technical plans for monitoring of mine wastewaters and nearby creeks.

The permit requires extensive environmental monitoring, including water quality sampling of mining wastewater and Sherman Creek, laboratory tests of wastewater and creek sediments to check for toxic effects, and annual fishery and habitat surveys.