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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Company News: Setback for Coeur mine in Alaska

From Staff and Wire Reports The Spokesman-Review

An appeals court has banned rehearings on its decision to bar the dumping of waste from the Kensington gold mine near Juneau, Alaska, into a lake, further delaying the mine’s opening.

The decision by the 9th U.S. Circuit Court of Appeals this week could lead to an appeal to the U.S. Supreme Court, Coeur d’Alene Mines Corp. said in a statement.

“The company is continuing its discussions with the plaintiffs to explore options for the Kensington Mine to begin production as well as reviewing a possible appeal to the Supreme Court of the United States,” the statement said.

The court has ruled that the dumping plan by Coeur d’Alene Mines into Lower Slate Lake violates the federal Clean Water Act.

Three conservation groups filed the lawsuit in 2005, saying a Corps of Engineers’ permit allowing Kensington to dispose of chemically processed tailings into a 23-acre Lower Slate Lake violated the act. Tailings are the waste rock from which ore is extracted.

Rob Cadmus of the Southeast Alaska Conservation Council says the best way to move the project forward is to find a mutually acceptable solution for disposing tailings from the mine, 45 miles north of downtown Juneau.

Company representative Tony Ebersole says the company will continue to participate in closed-door discussions with conservation groups to work out a resolution so the mine can start production. In a recent proxy statement, the company said it is not aware of an alternate site that could be permitted or would be economically feasible.

Coeur Alaska has about 79 employees at Kensington, in addition to contractors, Ebersole said.

He declined to comment further on the court decision but said he hadn’t heard of any possible layoffs because of the decision.

Coeur has spent $250 million developing the mine, which includes a completed three-mile tunnel through a mountain. It cannot begin to process ore without a working permit for disposing of the waste rock that comes out of the mill.

Clorox Co., looking to expand into the natural beauty products business, said Wednesday it would purchase lip balm maker Burt’s Bees for $925 million.

Burt’s Bees, based in Morrisville, N.C., makes beauty products that contain at least 95 percent natural ingredients.

The all-cash deal is expected to close by the end of the year. Oakland, Calif.-based Clorox makes Clorox bleach, Brita water filtration products and Kingsford charcoal, among a wide range of consumer products.