ANCHORAGE, Alaska (AP) - The Army Corps of Engineers will publish environmental recommendations this week for a proposed massive open-pit gold mine in western Alaska.
The Corps’ final environmental impact statement for the Donlin Gold Mine is expected to be released Friday after five years of work, the Alaska Journal of Commerce reported .
Owners envision a conventional open-pit mine 1.5 miles (2.4 kilometers) across and up to 1,200 feet (366 meters) deep. The mine at its peak is projected to produce more than 1 million ounces (28.35 million grams) of gold per year.
Donlin spokesman Kurt Parkan said initial exploration began 22 years ago.
“It’s a good day. We’re happy that we’ve reached (the final environmental impact statement). That’s a big milestone,” Parkan said.
A final environmental impact statement includes the oversight agency’s recommendations on how a project can be adjusted to minimize its environmental impacts. The Corps also could recommend not approving the project.
Donlin Gold estimates the mine and associated infrastructure, including a 315-mile (507-kilometer), 14-inch (35.5-centimeter) natural gas pipeline from west Cook Inlet and fuel storage in Dutch Harbor, will cost $6.7 billion.
Donlin Gold’s next steps will be obtaining a record of decision from the Corps and numerous other permits such as approvals for water discharge, waste management and a tailings dam safety permit.
When permits are in hand, company leaders will reevaluate the project’s economics, which are subject to gold prices, and begin a search for financing.
“That is the plan and we’re working on ways to reduce the capital cost,” Parkan added.
The proposed mine is 10 miles (16 kilometers) north of the village of Crooked Creek in the Upper Kuskokwim River drainage. The site would hold a tailings facility, power plant, workers’ camp and airstrip.
Donlin is a joint venture between Barrick Gold Corp. and NovaGold Resources Inc. Developers project the mine would producing about 1.1 million ounces of gold per year over a 27-year mine life.
The project is on lands owned by The Kuskokwim Corp. and Calista Corp., the area’s village and regional Native corporations.
A 30-mile (48-kilometer) road would connect the mine to a new barge port on the Kuskokwim River. Downstream, port cargo facilities would be expanded in Bethel.
The project is sensitive to gold prices because of its infrastructure costs and would not be economic at gold prices of about $1,100 per ounce, according to company officials. Gold on Monday was above $1,322 per ounce.
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Information from: (Anchorage) Alaska Journal of Commerce, http://www.alaskajournal.com
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