In a few weeks, survey crews will again be working on British Columbia mountainsides that could one day be home to one of the world\u2019s largest gold and copper mines, but construction of that mine isn\u2019t likely anytime soon.<\/p>\n
On Wednesday, Seabridge Gold vice president Brent Murphy updated members of the Juneau Chamber of Commerce and Juneau Economic Development Council on the progress of the controversial Kerr-Sulphurets-Mitchell mine near the headwaters of the Unuk River.<\/p>\n
\u201cWe are not going away. There will be a mining project. KSM will be built one of these days,\u201d Murphy told a small group in the offices of Southeast Conference.<\/p>\n
[Environmental groups: KSM a bad investment<\/a>.]<\/p>\n Thanks to falling global mineral prices, \u201cthese days\u201d are seemingly later, rather than sooner.<\/p>\n While exploratory drilling continues, Seabridge is still seeking a partner to develop its mine.<\/p>\n \u201cOur primary objective continues to be to complete a joint venture agreement on the KSM project with a suitable partner on terms advantageous to Seabridge,\u201d the company\u2019s 2015 annual report stated. \u201cThis objective is mostly not under our control.\u201d<\/p>\n According to a 2012 financial feasibility study, an investment of $5.256 billion will be needed to develop the mine. That titanic figure means Seabridge needs support from one of the world\u2019s 10 largest gold and mining corporations, the company stated in its annual report, released three weeks ago.<\/p>\n As global metal prices have plunged amid economic trouble in China and other developing nations, \u201cmarket conditions and industry confidence are key factors affecting the achievement of this objective,\u201d the company declared.<\/p>\n If the company can find a partner, the payoff would be huge. According to the latest figures published by Coeur Mining, the Kensington Gold Mine has proven reserves of 67,000 ounces of gold and another 493,000 ounces in probable reserves.<\/p>\n KSM has 10,300,000 ounces of proven reserves and another 27,900,000 ounces of probable reserves. And that\u2019s just the gold \u2014 KSM also has the potential for nearly 10 million pounds of copper, 191 million ounces of silver and 213 million pounds of molybdenum, a mineral used in electronic components and to harden steel.<\/p>\n That promise comes at a cost. Environmental groups have consistently opposed plans for the mine. While KSM does not intersect any salmon-bearing rivers or streams, it is upstream of the Unuk River, which flows through the Misty Fjords National Wilderness and into the Pacific Ocean north of Ketchikan.<\/p>\n [Part 1 of 3: Anti-KSM groups seek federal help<\/a>.]<\/p>\n Fishermen have expressed concerns that runoff from the mine could contaminate the Unuk, harming salmon runs. Those concerns intensified after a tailings dam failed at the Mount Polley Mine in August 2014, contaminating British Columbia rivers and lakes.<\/p>\n [Mount Polley to reopen after 2014 disaster.<\/a>]<\/p>\n Last week, the auditor general of British Columbia, Carol Bellringer, issued a report faulting the owners of another British Columbia mine, the Tulsequah Chief, for failing to stop the flow of acidic water from the mine and into the Taku River, which flows just south of Juneau.<\/p>\n \u201cWhat we learned last week from the auditor-general is that the BC process is not the best in the world,\u201d said Chris Zimmer, the Alaska campaign manager for Rivers Without Borders, which has opposed the KSM mine.<\/p>\n Murphy said the results of the auditor general report will have implications for KSM, too. \u201cI think you will absolutely see changes coming. We know there are changes coming,\u201d he said. \u201cThere will be stricter regulation. Of that, I have no doubt.\u201d<\/p>\n [Tulsequah Chief Mine Owner defaults on debt payment, critics wonder about cleanup responsibility<\/a>.]<\/p>\n While Zimmer has problems with KSM\u2019s plans, he doesn\u2019t think the mine is likely anytime soon.<\/p>\n \u201cIt\u2019s a very, very complex project, and I\u2019m sure investors are going to take a real hard look before they spend money,\u201d he said. \u201cI wouldn\u2019t be optimistic about getting that kind of money in the coming years.\u201d<\/p>\n \u2022 Contact reporter James Brooks at james.k.brooks@juneauempire.com.<\/p>\n Related stories:<\/p>\n Empire Editorial: KSM: Leaving Alaskans with all the risk, zero benefits<\/a><\/p>\n My Turn: Doing mining differently up north<\/a><\/p>\n Head of UAS mine-training program opposes tax hike<\/a><\/p>\n