To top off the week’s news on courts blocking mining projects, and get some insight about how to choose a wining stock, here are more stories of mines and courts and declining share value:
British mining giant Vedanta Resources plan to mine section of protected forests in India have been delayed after the Supreme Court ordered a root and branch impact study. The Indian Supreme Court ordered a “comprehensive” government report on the impact of large-scale mining activities in mineral-rich Orissa, in Eastern India, is what is being widely seen as a test-case for future mining developments.
Magnum Coal, Boone County, USA
Judge Robert C. Chambers issued the restraining order and temporary injunction Oct. 11, halting surface operations at Magnum Coal-owned Callisto Mine. In his order, he said surface mining permits issued by the Army Corps of Engineers are “arbitrarily capricious, contrary to law and contrary to the economic and environmental balance struck by Congress in the passage of relevant environmental statutes.”
Wynkoop Mining Charlevoix, MI, USA
After twice granted the right to surface-mine limestone from his property at 01195 Norwood Rd. and twice fending off attempts by opponents to stop him, Wynkoop and over a dozen codefendants, including planning commission and board of trustees members, now face two new lawsuits — a motion for preliminary injunction and/or stay and an appeal of the planning commission’s June 9 decision to grant Wynkoop the special use permit. The citizen group members claim several special use stipulations have not been followed: Stabilized construction access to prevent mud from being tracked onto Norwood Road; a gate limiting access to the mine; noise limit not to exceed 60 decibels and a limit of 30 truck trips a day; trucks prohibited from entering the village unless delivering gravel there; obtain all necessary permits for access road and pay half the cost of signage.
We must not forget the other mines in limbo because of court proceedings. Kisladag, Turkey is the strangest situation, but hopeful (maybe):
Eldorado Gold expects the court-ordered shutdown of its Kisladag mine in Turkey to be reversed by early November. A Turkish court in July ordered the mine shut pending its ruling on an environmental approval appeal. The mine currently accounts for about two-thirds of the company’s gold production. Speaking at the Denver Gold Forum, Paul Wright also said the company planned to look aggressively for acquisitions as it tries to expand annual production to 1 million ounces of gold.
I am not sure there is any commonality in these cases. But one must ask why the mining companies allow it to come to pass that they are hauled kicking and screaming into court? It cannot be cheap to fight these cases. I know that manly pride is not to be denied, and that every executive who gave the go ahead to fight these loosing cases, was convinced that might and right were on their side. To look at the silliness of the pride involved, consider this aspect of the Wynkoop debate:
“The Wynkoop defendants are blatantly conducting their operations in violation of these minimalist conditions,” Ferguson stated. However, Wynkoop said, all of the citizen group’s aforementioned claims are false and he has proof. “Per county requirements I am putting curbing and asphalt in at the end of my driveway to prevent mud and stone from being tracked onto the (Norwood) road; there is a gate to the mine entrance, but people can’t see it from (Norwood) road, so they think it isn’t there,” he said. The reason half of the signage has not been paid for, Wynkoop said, is because he has not received a bill.
It can all be avoided by writing a check, or so it would seem.
These thoughts are prompted by an e-mail I received this morning from an old friend who is looking after the community relations program for a Nevada mine. Knowing him, I suspect we won’t see any of these depressing court reports. In fact, if the company has been wise enough to engage him, I bet they will succeed in all aspects, so I am off to buy.
