Revisions to Arizona Mining Advisory Council advancing in Legislature

SB1464, which makes amendments to duties and membership on the Arizona Mining Advisory Council, has passed in the Arizona Senate, is having its 3^rd read in the House today.   The bill adds advisory members from the House and Senate, but most significantly, eliminates the function for "Reviewing mining policy in this state as established by law and as administered in all functional areas of state government" and its authority to "conduct periodic analyses of agency policy affecting mining, including policy as reflected by decisions of administrative law judges and agency directors."  

The AZGS was the only state agency ever asked to provide a review to the Council of our budget expenditures related to mining and raised questions in my mind about a legislatively appointed body inserted in the administrations budget and policy development and implementation.  This revisions to the statute appear to clean up potential conflicts between a governor and the legislature over setting policy.

Vic Baker's GSA International Distinguished Lecture Tour

University of Arizona planetary geologist Victor Baker [photo credit GSA] is getting ready to launch his International Distinguished Lecture Tour for the Geological Society of America.  In May, Vic will be lecturing in Spain, Italy, and Turkey. His topics are described below:

Megafloods on Earth, Mars, and Beyond
For more than 40 years University of Arizona Regents’ Professor Victor R. Baker has been studying the most spectacular and immense flood phenomena currently known to occur anywhere in the solar system. The immense megafloods of the last Ice Age created bizarre landscapes like the Channeled Scabland and altered the circulation of the oceans thereby changing Earth’s climate. More surprising was the discovery that much larger megafloods occurred billions of years ago on the planet Mars. The Martian megafloods formed temporary bodies of water on that planet, even generating a kind of ocean that facilitated environmental conditions on Mars that may have been like those of an ice age on Earth. These discoveries are showing that Mars, like Earth, had a long-term cycle of water circulation that produced a habitable planet, and these are exactly the kinds of processes to seek out in the newly initiated search for the other habitable planets of the universe.

Geological History of Water on an Earth-like Planet
Recent advances in astronomy hold the prospect for discovery of a great many Earth-like planets, rich in both water and possible habitats for life, thereby greatly expanding from the current sample of one. Nevertheless, until it proves possible to do geology for these numerous potential exo-Earths, we can greatly advance the geological science of Earth-like planets by study of Mars. The early geological histories of both Mars and Earth are closely tied to the role of water, extending from the nature of planetary accretion to the origin of a physically coupled atmosphere and ocean, the prospects for initiating plate tectonics, and historical records of punctuated greenhouse-to-icehouse climatic transitions. Recent discoveries from Mars missions reveal the extensive role of water in generating sedimentary rocks, active and relict glacial and periglacial features, aqueous weathering products (clay minerals and sulfates), alluvial fans and deltas, the extensive development of paleolakes, and even a probable, though transient ocean.

Rio Tinto declares force majeur at Bingham Canyon copper mine due to landslide

Rio Tinto yesterday reported that the landslide in the Bingham Canyon copper mine moved more than 165 million tons of materials.   They warned that "Early estimates are 2013 production of mined and refined copper will be roughly 50 percent lower than planned."

The announcement also said "As a consequence of the slide, Kennecott Utah Copper also invoked 'force majeure' with those companies that we supply copper cathodes and sulphuric acid. In simple terms, this means we are notifying customers that because we are not operating at full capacity we anticipate being able to provide copper products in the short term, but timing of future shipment is yet to be determined."

Kennecott has posted a fact sheet on the mine and landslide at  http://kennecott.com/sites/kennecott.com/files/newsroom/pdf/slide_fact_sheet_fnl4_15_13_315pm.pdf

They have an extensive photo set posted on Flickr at http://www.flickr.com/photos/riotinto-kennecottutahcopper and at http://www.flickr.com/photos/riotinto-kennecottutahcopper/sets/72157633216160914/

Bingham Canyon - most expensive landslide of all time?

Various estimates are rolling in, but they all point to the growing recognition that the wall collapse in the Bingham Canyon copper mine outside Salt Lake City, will be the most expensive landslide in history.   Dave Petley who does his usual superb job at the Landslide blog bringing together all the best information and insights, reports the Wall Street Journal estimates a loss of $770 million in revenue to mine owner Rio Tinto.   

Utah State Geologist Rick Allis told us this afternoon that "This may end up being the nation's most costly landslide - the 1983 Thistle landslide in Utah previously had this dubious distinction ($200 million in dollars of the day; probably $400M - $500M in today's terms).  The scale is hard to comprehend,  but since Bingham is a ~$1 billion/year operation, and they lost over a dozen of those large-haul trucks [right, http://imgur.com/gallery/Btvfi.  Courtesy, Landslide blog] and several power shovels, the ultimate numbers will be large. Apparently those trucks had been shifted the previous day to a ledge on the far side of the pit about 300 feet above the bottom of the pit and were thought to be safe."

Dave Petley points out that the mine produces 17% of copper in the US and 1% worldwide and that some analysts warn that "the event might cause an increase in global copper prices, but so far this does not seem to have occurred."

Wall slide at Utah's Bingham Canyon copper mine expected to cut production

A giant slide on the wall of the Bingham Canyon copper mine in Utah shut down the mine operations last Wednesday night. Kennecott Utah Copper has posted an extensive set of photos online.   [Photo credit, Kennecott Utah Copper]

Kennecott had been monitoring ground movement and taken steps to restrict public and employee access to areas that could be impacted by a slide, however, the slide appears to be bigger than they expected as it buried mining equipment that had been moved out of the expected pathway.

Subsequently, Rio Tinto, parent of Kennecott Utah Copper, said the company was refining stockpiled material but did not predict when production might resume.

Reuters said  "Kennecott is the second-largest copper producer in the United States, and Bingham Canyon, one of the world's largest open pits, produced 163,200 tonnes of copper last year, as well as 200,000 ounces of gold."   They quote BMO Capital Marketsanalyst Tony Robson that between "80,000 and 160,000 tonnes of copper could be lost this year, and production could be affected in 2014 and 2015 as well."

I have not seen predictions of what this could mean for the US and international copper markets.   Arizona produces about 2/3 of the copper used in the US.

ADOT - $28 million to pave detour around US 89 Bitter Springs landslide

ADOT announced that "the State Transportation Board approved funding to pave Navajo Route 20, a Navajo Nation tribal road that runs parallel to US 89, at its monthly meeting April 12 in Tucson" at an estimated cost of $28 million and dependent on getting agreements in place with the Navajo Nation, Bureau of Indian Affairs and the Navajo Division of Transportation.  [Photo credit, ADOT]

"The project would improve the existing 44-mile-long tribal route [N20] and upgrade so it could accommodate the anticipated traffic volumes, including commercial truck traffic. The major work is paving 27 miles of dirt road stretching from Bodaway-Gap to LeChee (approximately 27 miles).
Construction could begin next month. ADOT’s goal would be to complete the work by early summer."

Navajos will assess purchase of coal mine

The Navajo Nation is spending $2.3 million for due diligence of their proposal to buy the Navajo coal mine in northwest New Mexico from BHP Billiton. The mine is a major employee of Navajos and is the source of all the coal for the Four Corners power plant that supplies Arizona Public Service customers.

[Right, Navajo Mine bench. Credit rocbolt -Kelly Michals, Creative Commons license]

Small quake south of Page, Arizona

There was a magnitude 2.8 earthquake south-southwest of Page, Arizona, on Saturday morning, April 6, about 8:35 a.m. local time.

[Right, orange star marks epicenter.  Credit, USGS]

We notice that the epicenter is generally near the Bitter Springs landslide that closed US 89 and wondered if it might be related to activities to re-open the road.

Our friends at the University of Utah Seismograph Stations located the event with an extended number of phases, indicating a focal depth of 10 km.  So, for now, we are treating it as a real seismic event.

Thanks to Jeri Young for providing the additional insights.

U.S. copper production at 3-year high; Arizona's Ray mine up 9%

The USGS reports that US copper production increased by 5% from that in 2011 and was at its highest level since 2009, although refined copper production decreased.  Smelter reduction was offset by higher exports of raw product.

The Mineral Industry Summary for copper states that:

In 2012, production from FCX’s [Freeport McMoRan] mines in Arizona rose slightly to 557,000 t, and production at  ASARCO LLC’s mines in Arizona also rose slightly, as a 9% increase in production at the Ray Mine was partially offset by lower production at the Mission Mine. A $60 million investment in new ball mills at the Mission Mine, slated to come on stream in the third quarter of 2013, was expected to increase production at Mission by 10,000 metric tons per year of copper.

 [Right, Ray Mine. Credit, Freeport McMoRan Copper & Gold]

Florence rescinds sulfuric acid ban aimed at copper project

News reports say that the Florence Town Council "voted unanimously to lift its eight-month-old ban on sulfuric acid, avoiding a showdown with Curis Resources in federal court. The town continues to pursue eminent domain to acquire the Florence Copper Project property."

The ordinance applied only to the copper project, exempting farmers. The Florence Reminder & Blade Tribune reports that  Curis Resources submitted a claim against the town of $140 million as a result of the ordinance.  [Right, cross-section of Florence copper project showing injection and recovery wells.  Credit, Curis Resources]

The town is continuing with an eminent domain action to take Curis's mining properties for a waste water treatment plant.

Arizona mining jobs pay more than twice the state average

The average income of workers in the Arizona mining industry was $108,000 in 2011, more than double the state income average of $47,000.    Most of those jobs are in the copper industry.  Jobs generated as a result of the mining industry averaged $65,000 per year.  [Right, graph from report fact sheet]

The copper industry dominates economic impacts of the mining industry in Arizona, according to a new study from Arizona State University. "The Economic Impact of The Mining Industry on The State of Arizona – 2011" was prepared for the Arizona Mining Association by the L. William Seidman Research Institute W. P. Carey School of Business at ASU:

Arizona mining companies living in the state. Of this total, 10,600 were employed by copper mining companies. The remaining workers were employed by companies engaged in coal mining, gold and silver mining, and uranium mining. Employees of Arizona mining companies are distributed widely across state counties. Each of five counties is home to at least 10 percent of the state’s mining employees: Gila, Graham, Greenlee, Pima and Pinal.

Three other counties - Maricopa, Mohave and Yavapai — have more than 500 mining employees in residence. The total income paid to employees of Arizona mining companies in 2011 was $1.22 billion. This includes wages, salaries, and fringe benefits such as employer contributions to health insurance and retirement plans.

Overall, income per worker in the mining industry is $108,000. This compares with an average income of $47,000 per worker across all industries in Arizona.

Tree-Ring Lab open house on April 9

The University of Arizona Laboratory of Tree-Ring Research invites you to attend TREE-RING DAY as part of Earth Week, on Tuesday, April 9, 10:00 am - 4:00 pm, for tours of the new Bryant Bannister Tree-Ring Building, a Taco Bar Lunch, and talks by LTRR Graduate students and faculty members.

 

The event is free and open to the public. Tours of the new facility will run from 10:00 am through 12:00 pm.  [Photo credit, UA]

Directions: http://ltrr.arizona.edu/map 

Detailed Schedule: http://www.ltrr.arizona.edu/~chguitermanTreeRingDay2013Schedule.html

More potash exploration coreholes permitted in Holbrook basin

Passport Potash has received permits  (Arizona permits #1139-1145) for 7 more exploration core holes on their land holdings in the Holbrook basin potash play.  The Arizona Oil & Gas Conservation Commission permits these holes because they drill through potentially oil and gas bearing strata.   [Right, land status map.  Passport's lands are light blue on west side.  Credit, Passport Potash report]

Small quake south of Fredonia

There was a magnitude 2.8 earthquake at 8:17 a.m. this morning local time, about 7 miles southeast of Fredonia, Arizona near the Utah border.

[Right, gold star marks the epicenter. Credit, USGS]

Mining foes say northern Arizona ban doesn't go far enough

Groups opposed to uranium mining in northern Arizona have filed suit over plans by Energy Fuels to develop the Canyon mine which they say is fully permitted [right, location map from Energy Fuels]. The Arizona [Phoenix] Republic ran a front page story today on a suit filed a couple of weeks ago, presenting the mine opponents arguments that  information in reports from the USGS and others subsequent to the Forest Service approval in 1986 invalidates the company's rights to proceed.

However, that information appears to be included in the draft EIS that Secretary of Interior Ken Salazar  had when he publicly supported continuation of currently approved projects last year when he withdrew 1 million acres of federal lands from mining and geologic exploration. The Interior Dept. press release noted at the time the Secretary's commitment to allowing approved projects to continue:

"Secretary Salazar’s decision will provide adequate time for monitoring to inform future land use decisions in this treasured area, while allowing currently approved mining operations to continue as well as new operations on valid existing mining claims.

The withdrawal does not prohibit previously approved uranium mining, new projects that could be approved on claims and sites with valid existing rights. The withdrawal would allow other natural resource development in the area, including mineral leasing, geothermal leasing and mineral materials sales, to the extent consistent with the applicable land use plans

During the withdrawal period, the BLM projects that up to 11 uranium mines, including four that are currently approved, could still be developed based on valid pre-existing rights – meaning the jobs supported by mining in the area would increase or remain flat as compared to the current level, according to the BLM’s analysis.

Energy Fuels describes the Canyon mine as "a fully-permitted uranium mine located in northern Arizona approximately 6 miles southeast of Tusayan, Arizona. The mine site for this high-grade “breccia pipe” deposit has less than 20 acres of total surface disturbance and is situated on land managed by the U.S. Forest Service. The mine was approved by the Forest Service and partially developed in the late 1980’s. There is significant existing infrastructure at the site, including a head-frame, hoist and a partially sunk shaft. There are approximately 1,629,000 lbs. of U₃O₈ at Canyon, contained in 82,800 tons of inferred resource at an average grade of 0.98% U₃O_8.
 
Refurbishment of surface facilities development has begun at the Canyon Mine, and the Company expects to sink the remainder of the shaft and complete all surface and underground facilities by 2014.  Production is expected in 2015."

Detecting geologic units by smell: rock aromas added to Google Nose database

Geologists can now identify most geologic formations in the U.S. with a data base of unique odors now linked to the Google Nose app.

The geo-smells are included in the  Google Aromabase of over 15M scentibytes  and were collected by field geologists using portable odorometers to crush and analyze samples from formations, members, and facies of every major geologic unit.     Collection of aromas from igneous and volcanic rocks is currently underway and is expected to revolutionize prediction of volcanic eruptions.   Fresh lava has a much different smell than old, cold, flows.



Geologists are only starting to understand how we can use Google Nose for mineral and petroleum exploration and detection of fossils.

Posted April 1, 2013