South Dakota mining firms wait for impact study results

An initiative designed to limit exploration in South Dakota’s scenic Black Hills region was defeated in recent state elections by a narrow margin of 52% to 48%. But it appears that the battle between lobbyists working for and against the mining industry isn’t over yet. John Gartner, a senior project geologist at Noranda’s (TSE) Lake Superior division, said miners are waiting for the results of an impact study conducted by the South Dakota Board of Minerals and Environment.

Due to be released this week, the study is designed to measure the impact of mining operations in the Black Hills where mining and tourism are the two main industries.

“We think the outcome of the study will be favorable (toward miners) but it is too early to say,” said Gartner.

It comes on the heels of an attempt by a lobby group known as the Surface Mining Initiative Fund, to limit surface disturbances in the Black Hills from both surface and underground gold mining operations to 3,100 acres.

As a number of companies including Homestake Mining (NY SE), Wharf Resources (TSE), United Coin Mines (TSE), and Crown Butte Resources (TSE) are active in the Black Hills, the election result was welcomed. “It is good for the mining industry and we hope to continue mining in the area,” said Rolly Francisco, chief financial officer of Dickenson Mines (TSE) which owns 36.4% of Wharf.

Companies with property in the Black Hills are already facing a 2-year moratorium that puts severe limits on project expansions until January, 1992. Any further limits on mining activity would have killed off exploration there altogether, according to mining executives familiar with the region.

Crown Butte, a 22.6% owned affiliate of Noranda had shelved exploration on its Bobcat and Cochrane projects pending results of the local elections.

However, The Northern Miner was unable to reach Walter Nash, Noranda’s director of U.S. exploration, for comment on his company’s plans now that anti-mining initiative has been defeated.