GRANTS - Since January 2006 18 permits have been submitted to the New Mexico Mining and Minerals Division for exploration. Six have been approved, five denied, four pending and three have been withdrawn.

Left to right, Steve Stewart of Stewart Bros. Drilling, Bill Sorensen of Wow Diner, Juan Velasquez of Strathmore Mineral Corp. and Joe Lister of Rio Grande Resources Beacon photo by Donald Jaramillo

“At this point all we have seen are exploration projects,” said Bill Brancard, director of the division.

Sixteen of the requested permits have been within the Grants Mineral Belt, the other two in Socorro County.

“We have not regulated any kind of traditional mine since the state Mining Act of 1993,” Brancard said. “After the exploration process we will request a 12 month environmental data report. Not one project is even to that point so the estimate times everyone is hearing of three to five years is correct.”

Brancard noted that the Mining Act was approved after the last uranium boom and therefore all of these new projects are considered new mining operations. “My staff is being trained on how uranium mining is done so we can be up to date,” he said.

The director noted that one big difference is a backward plan, “the mines are going to have to have a plan to close the mine before opening.”

“Two things, they will need to have a reclamation project approved and a financial assurance bond just in case the company gets up and leaves one day.”

One obstacle Brancard pointed out that has not been mentioned publicly much by companies interested in mining in the Grants Uranium Belt is funding. He said a mine could cost approximately $100 million and the cost to build a mill is approximately $250 million.

The director noted that with new laws in effect the mining process is environmentally safe because the mining companies must meet the water quality discharge permit process.

“As far as health issues, the state has very little impact,” the director noted. “Federally there are MSHA and OSHA, (Mine Safety and Health Administration and Occupational Safety and Health Administration, respectively) and the mines will need to meet their requirements.”

Brancard also noted there are several mining bills now in the state legislature.

Senator David Ulibarri of Grants has proposed a bill that would put a sur-tax on uranium mining companies for cleanup in the future. Representative Patricia Lundstrom of Gallup also has two bills involving uranium.

“Senator Lynda Lovejoy of Gallup is proposing a bill to make several changes to the 1993 Mining Act,” Brancard said. “She's noticed some weaknesses in the act but with this session being a short financial one, it more than likely that bill won't get very far.”

Bills are also before the federal legislature to revamp the General Mining Law of 1872. If passed, new legislation would charge royalties on mining companies for extracted ore.

By Donald Jaramillo

Beacon Publisher/Managing Editor