Drop in copper prices moves Arizona out of #1 mining position

Arizona fell to second place in value of non-fuel minerals produced in 2015.  The USGS Mineral Commodities Summary for 2015 shows Arizona producing $6.8 billion of mineral vs $6.94 billion in Nevada. Nevada production is dominated by gold whereas Arizona is controlled by copper.

Arizona production value was down 14% from the prior year. In 2014, Arizona mineral production was valued at $8.06 billion, or 10.38% of the national production, while Nevada as at $7.49 billion.   

In addition to copper, Arizona's main mineral products were molybdenum concentrates, sand and gravel (construction), cement (portland), stone (crushed).   Arizona produced 8.69% of the value of the nation's non-fuel minerals in 2015.  [Right, AZGS active mines map]

Bill reintroduced to transfer mining and mineral museum to AZGS

Sen. Gail Griffin has reintroduced her bill, SB1440,  to transfer the former Arizona Mining & Mineral Museum in Phoenix, rom the Arizona Historical Society to AZGS to be re-opened as the Arizona Mining, Mineral, and Natural Resources Education Museum.  The bill is essentially the same as the version that passed last year in the Legislature, 25-0 in the Senate, and 58-2 in the House.  Governor Ducey vetoed that bill.

The museum was transferred from the Dept. of Mines & Minerals Resources  (DMMR) to the Historical Society in 2010 in anticipation of converting it to the Arizona Experience museum for the 2012 Arizona Centennial, but funds were not raised.  The museum shut down in 2011 and has been vacant and closed since then.  DMMR was merged into AZGS in 2011.

Fans and advocates of the old museum have campaigned relentlessly to have it reopened.  The new museum would have a dramatically expanded mission, adding agriculture, livestock, forestry, and education to its portfolio.    SB1440 would transfer an unstated amount of funds for the rent, plus one curator position.  Additional funds would come from the fees paid for centennial license plates.

The bill faces an additional complication this time, since Gov. Ducey is proposing that AZGS's duties be transferred to the University of Arizona. 

[Corrected]: Consolidation would move AZGS into UA Geosciences Department

correction [1-25-16, 10 AM]:
The information below was early language that was dropped but mistakenly posted in the online budget document.  The options for where AZGS would be housed in UA are still under discussion
 

Governor Ducey's Office of Strategic Planning and Budget has released new details on his proposal to consolidate the Arizona Geological Survey into the University of Arizona. An addition to the Executive Budget states:

"For FY2017, the Executive recommends consolidating the Arizona Geological Survey with the Department of Geosciences within UA’s School of Earth and Environmental Sciences. The State Geologist would continue to be a gubernatorial appointee."

Arizona Geological Survey's return on investment = 668%

Since 2011, the Arizona Geological Survey has successfully raised more than $35,800,000 in external research grants from federal, state, local, non-profit, and private sources.  Over that same period our total cumulative state appropriation was $5,364,100, for a Return on Investment of $6.68 of income for every $1 of state funds.   This compares favorably with top tier research centers across the country.

In addition, we have numerous funding proposals under review and have been told to expect new awards of at least $1.6 million this fiscal year.  That would increase our ROI number.

We compiled these numbers for inclusion in briefing materials we are preparing for the University of Arizona to help them understand and evaluate Governor Ducey's proposal to transfer the duties of the AZGS to the university.


These grant funds have been key to maintaining and even expanding state services despite significant state budget cuts during the Great Recession.

Moderate quake south of Arizona-Utah border

There was a magnitude 3.0 earthquake in northwest Arizona at 5:10 PM local time on Thursday. Preliminary location shows the epicenter in the southern part of the Intermountain Seismic Belt. [Right, orange star marks epicenter.  Credit, USGS]

Bill would eliminate licensing of assayers in Arizona

A bill in the Arizona Senate would eliminate the requirement for assayers to be licensed in Arizona.  SB1256, filed by Sen. John Kavanaugh (R-Fountain Hills) would drop Assayers from the list of professions regulated by the Arizona Board of Technical Registration. The Board previously voted to make this change.

Arizona appears to be the only state in the country to license assayers, initiated as a way to minimize mining fraud from unqualified, phony, or doctored assays. 

The group of licensed assayers is opposed to eliminating licensing and is seeking to find another state agency to take over this duty.

Wulfenite proposed as Arizona State Mineral

A bill filed in the Arizona House (HB2496) by Rep. Mark Finchem (R-Tucson) would designate wulfenite as the State Mineral of Arizona.    [Right, wulfenite from the Red Cloud mine. Photo credit, Jan Rasmussen]

Copper is the current State Metal, hence Arizona's moniker as the "Copper State."   Turquoise is the State Gemstone, adopted in 1974.

Petrified wood, or araucarioxylon arizonicum, is the official state fossil.

A full list of Arizona State Symbols is available at the Secretary of State's website at http://www.azlibrary.gov/state-symbols

Governor proposes transferring Arizona Geological Survey to the University of Arizona

Governor Ducey's Fiscal Year 2017 budget proposes transfer of the Arizona Geological Survey duties and responsibities to the University of Arizona, beginning July 1, 2016.

The Governor's budget proposal states:

The Arizona Geological Survey was originally housed at the University of Arizona. While the Survey was formally established as an independent State agency in 1988, it retains strong collegial and logistical ties with University faculty and staff. Both engage in rigorous academic geoscience research that greatly benefits the state. For FY 2017, the Executive recommends consolidating the Arizona Geological Survey with in the University of Arizona. This model, adopted by 20 states, is designed to enhance synergies by streamlining services and location of geological mapping data to better serve stakeholders. It presents potential for greater opportunities to successfully leverage research grant funding, can provide a direct pipeline of student researchers to the survey, and should help attract high-profile geologists.

The Executive recommends moving the Oil and Gas Conservation Commission to the Department of Environmental Quality.

If the Legislature approves the proposal, the details of the shift of duties will be worked out between the Governor's Office and the University.  

Bill would ban 'fracking' in Arizona

A bill submitted to the Arizona House today would prohibit hydraulic fracturing ("fracking") for oil and gas production.  House Bill 2407 amends statutes of the Arizona Dept. of Environmental Quality to state that "A person may not engage in hydraulic fracturing in this state and may not collect, store or treat water in this state if that water is used in, generated by or resulting from the process of hydraulic fracturing."
 
Hydraulic fracturing is being blamed for earthquakes in Oklahoma, Kansas and other areas, when in fact the quakes are likely being caused by the deep underground injection of wastewater from oil and gas production in those regions, a practice common in the industry worldwide for decades. However, the use of hydraulic fracturing has resulted in increased water production.

A few exploration wells have been hydraulically fractured in Arizona in past decades but none in recent years, and none of the 16 or so producing wells in Arizona were fracked.  There are no proposals to do so anywhere in the state.   A permit to 'frack' requires approval from the Oil & Gas Conservation Commission and the Arizona Dept. of Environmental Quality.

Governor approves filling 4 positions for Dept of Water Resources

Governor Doug Ducey, in his State of the State address today, called for filling four positions in the Arizona Department of Water Resources, with one hydrologist and three planners.   ADWR staffing has decreased from 250 before the Great Recession to 125 today.
 
The Governor said,

"If there’s one thing Arizona is best in the nation at – it’s water. We sit in the Capitol city in one of the largest metropolitan areas in the nation in the middle of a desert.   Thanks to revolutionary planning efforts like our 1980 Groundwater Management Act, and leaders from Carl Hayden to Mo Udall to Jon Kyl, Arizona has grown and thrived.

We’re building on that, and we have a plan in motion. Right now, a team of our top water experts, users and providers are charting the path forward. I’ve directed them to:

• Investigate new, long-term sources for water in our state.
• Explore additional conservation opportunities.
• And identify future infrastructure needs so we don’t end up like sorry California

I’ve also given the green light to the Arizona Department of Water Resources to use existing dollars to hire new staff that the water community has been requesting for years – experts who can take these plans and make them work."

AZGS leverages grant funds to carry out state functions

The Arizona Geological Survey leveraged each dollar of state funding last fiscal year with more than 4 dollars of grants and contracts to help carry out our statutory duties.  AZGS has not only maintained but expended state services despite an effective 60% reduction in state funding since the start of the Great Recession.   This is documented in the AZGS Fiscal Year 2015 Annual Report,  which we delivered to the governor as required by statute and posted it online for public view at http://repository.azgs.az.gov/sites/default/files/dlio/files/nid1666/ofr-15-07-2015-annual-report-final.pdf

The infographic below provides a snapshot of selected outreach activities and products.  The full report offers a more detailed recap of accomplishments, services, and products available to our stakeholders and customers.

Moderate quake south of Fredonia

A magnitude 3.6 earthquake struck about 24 miles SSE of Fredonia yesterday at 3:33 p.m. local time.  There are reports of light shaking being felt from the south rim of Grand Canyon to Orderville in southern Utah.  [Right, red star marks epicenter of quake. Light blue areas are where the quake was reported felt. Credit, USGS]

update 9:37 a.m. 12-29-15: 

The recording below from the broadband seismic station on the North Rim picked up the quake nicely [top arrow] and a possible minor aftershock less than 4 hours later [lower arrow]

The Google Earth image at the bottom shows the revised location (lower red squiggle) determined using the AZGS-run Arizona Broadband Seismic Network vs the original location from the USGS (upper red squiggle marked "USGS") which did not use our stations.   There are also reports of the quake being felt in Havasupai Canyon.

Freeport's Executive Chairman resigns

Freeport McMoRan's founder, James R. Moffett, is resigning as Executive Chairman of the Phoenix-based copper and gold company, according to news reports.   The Wall Street Journal said  "Moffett served as chief executive of the company and its predecessors between 1984 and 2003. He co-founded McMoRan Oil & Gas Co. in 1969 and lead its eventual merger with Freeport Minerals Co. In 1988, under his leadership, the company discovered Indonesia’s Grasberg mine, one of the world’s biggest for gold and copper."    It attributed his resignation to pressure from investor Carl Icahn, and the two-thirds drop in company stock in the past year.

The Arizona Republic stated that "For years, Freeport-McMoRan had been Arizona's most profitable and most valuable corporation in terms of stock-market capitalization. The company was worth around $38 billion as recently as the summer of 2014 but now is worth just $8 billion."

Freeport operates the giant Morenci copper mine in eastern Arizona [right, credit Freeport McMoRan].  The company projected sales of 4.3 billion pounds of copper in 2015.

USGS launches new website for Gold King Mine spill

The USGS has launched a new website - http://water.usgs.gov/owq/gkm/  which provides water data, images, reports and interactive maps related to the Gold King Mine accidental spill which happened on August 5, 2015 near Silverton, Colorado.  [Right, Animas River below Silverton, CO, on Aug. 13, 2015.  Credit, USGS]

The website serves as a one-stop-shop and single source of  USGS information and data related to the spill and provides links to:

 ·         Water quality databases for recent and historical sample analyses along the spill area.

 ·         Interactive maps of current and past USGS water-quality sampling sites and real-time streamgages in the San Juan River watershed, including Cement Creek and Animas River.

 ·         Satellite imagery of the watershed area including both pre and post-event data.

 ·         A selected bibliography of past USGS reports on abandoned mine lands and natural sources of metals and acidity to streams in the Silverton area.

 ·          A gallery of Gold King Mine photos taken by USGS field personnel the week of August 10, 2015.[modified from the USGS announcement]

The Arizona Geological Survey maintains an interactive web map with sample locations and results from all of the state and federal agencies monitoring the spill and its aftermath, at http://maps.azgs.az.gov/gold-king-mine-spill/.  You can search for any samples that exceeded drinking water standards, and over what time period.

Suzette Kimball confirmed as Director of the USGS

The U.S. Senate confirmed Dr. Suzette M. Kimball as Director of the U.S. Geological Survey.  President Obama announced his intent to nominate Kimball as Director in January 2014, and she has been leading the agency in an acting capacity since February 2013.

Small quake south of Flagstaff

There was a magnitude 2.4 earthquake (orange star at right. Credit, USGS) just after 11 pm on Friday night. about 9 miles south of Flagstaff.   It's possible this is another aftershock to the magnitude 4.7 quake of November 30, 2014.

$100 million cost to permit Rosemont copper mine

The permitting process for the Rosemont copper mine south of Tucson will cost $100 million. That figure was reported by Kathy Arnold of HudBay Minerals in a talk today at the annual SME Tucson conference.

HudBay bought out Augusta Resources, former owner of the Rosemont project, in mid-2014 as a result of Augusta's challenge in finding enough resources to complete the permitting process.

Opponents of the mine have been upfront in proclaiming their strategy of dragging out the permitting process as long as possible in order to make it too expensive for the mining company to continue.

The average time to permit a new mine in the US is now 10 years, the longest period among developed countries, and the second longest in the world.

HudBay Minerals CEO leaving to join Goldcorp.

HudBay Minerals Inc. , which owns the Rosemont Copper Project in Arizona [photo credit, Rosemont Copper], announced today that David Garofalo has provided notice to the Board of Directors of his resignation as President and Chief Executive Officer. Mr. Garofalo advised the Board that he has accepted an appointment as President and Chief Executive Officer of Goldcorp Inc.

Vancouver-based Goldcorp was the world's fourth-largest producer of gold as of the last quarter of 2014.

According to an announcement released today, Hudbay also announced that it has appointed Alan Hair as President and Chief Executive Officer, effective January 1, 2016. Mr. Hair has served as Hudbay's Chief Operating Officer since 2012 and he has held a number of senior leadership roles in business development and operations at Hudbay since 1996. Mr. Hair has worked in the mining industry for over 30 years and holds a degree in mineral engineering from the University of Leeds.

"On behalf of the Board of Directors, I would like to wish David the very best in his new endeavour. We are pleased with the growth of Hudbay over the past five years under his leadership," said W. Warren Holmes, Hudbay's Chairman. "With Alan Hair assuming his new role as President and Chief Executive Officer, Hudbay is well prepared to continue the strategy of the past five years, and to optimize the safety, environmental and cost performance of our three new mines in this challenging metals market. Hudbay will also continue to seek accretive growth opportunities that fit our strategic criteria."

"I appreciate the opportunity I have had to serve as Hudbay's President and Chief Executive Officer," said David Garofalo. "Our development as a company over the past five years is a testament to the hard work, dedication and competence of our employees across the organization. I am very proud of all we have been able to accomplish and I will miss the wonderful culture we have built at Hudbay. I am confident in the company's continued success under the leadership of Alan Hair and the very effective Hudbay team." 

[most of this post is taken from the HudBay news release]

Upcoming talks at the Central Arizona Geology Club

The Central Arizona Geology Club is starting their meetings 30 minutes earlier at 6:00 pm, to accommodate the earlier closing time of the Prescott Library [right] where they hold their meetings.

Upcoming meetings:

January 12 (second Tuesday) John Hughes - “The Historical Development of Modern Geology”

February 25 (third Thursday), Jeb Bevers, Yavapai College, “Paleontology in 19th Century England”

March 8 (second Tuesday), Christa Sadler, author, “Dawn of the Dinosaurs: The Late Triassic in the American Southwest”

April 5, (first Tuesday), Dave Gillette, Vertebrate Curator, Museum of Northern Arizona

May 10 (second Tuesday), Abe Springer, NAU, on springs and seeps in Arizona