[Federal Register Volume 66, Number 175 (Monday, September 10, 2001)]
[Notices]
[Pages 46992-46994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22597]


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DEPARTMENT OF AGRICULTURE

Forest Service

[Docket No. 0413-MGGL16C]


Idaho Cobalt Project Plan of Operations, Salmon-Challis National 
Forest, Lemhi County, ID

AGENCY: Forest Service, USDA.

ACTION: Notice of intent to prepare environmental impact statement.

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SUMMARY: The USDA, Forest Service, will prepare an Environmental Impact 
Statement (EIS) for the proposed Idaho Cobalt Project Mine. The Salmon-
Challis National Forest Supervisor has determined that preparation of 
the EIS is required for approval of the Idaho Cobalt Project Plan of 
Operations (Plan), under FS regulations governing locatable mineral 
activities on National Forest System Lands (36 CFR 228A) and CEQ 
regulations implementing the National Environmental Policy Act (40 CFR 
1501-1508). The EIS will disclose the environmental effects of the Plan 
submitted by Formation Capital Corporation U.S. (Formation) for an 
underground cobalt-copper-gold mine on the Salmon/Cobalt District of 
the Salmon-Challis National Forest in Lemhi County, Idaho.
    The proposed Idaho Cobalt Project is located in an area of the 
Salmon-Challis National Forest open to mineral location and 
development. The Forest Service is guided by law and policy, which 
recognizes Formation's legal right to explore for, and develop mineral 
resources. At the same time, the Forest Service is charged to ensure 
that these activities are conducted in an environmentally sound manner, 
and that once completed, reclamation of the land to a stable and 
useable condition is accomplished.
    The Idaho Cobalt is approximately 45 road miles west from Salmon, 
Idaho or 22 direct miles. The initial Plan submitted by Formation 
describes the proposed Idaho Cobalt Project, including production adits 
and declines, waste rock disposal areas, processing plant, tailings 
disposal methods, haul roads, and ancillary support facilities on 
National Forest System Lands. Two separate underground mining 
operations would be developed and used to extract ore from two 
deposits, the Ram and Sunshine. Three portals are being proposed along 
the slopes above Bucktail Creek. A mill would be situated on a plateau 
located east of the portals. Tailings disposal is proposed to utilize a 
dry stacking method in an area located east and down slope of the mill. 
Process waters would be managed and are proposed to be recycled in a 
closed system, using a water management reservoirs located east and 
down slope of the tailings disposal site. The proposed nominal ore 
production rate for mining has been established at 800 tons per day 
(tpd) or 280,000 tons per year (tpy). The initial start-up rate is 
proposed to be 600 tpd or 210,000 tpy, with full production in the 
third year. Current reserves and resources identified by Formation 
would allow for a 9-year mine life. The project would have a surface 
disturbance estimated at 191 acres.
    The proposed Idaho Cobalt Project is located adjacent to the 
Blackbird Mine in the historic Blackbird Mining District. Extensive 
negotiations have occurred and are still ongoing between the existing 
and previous owners of the Blackbird property and state and federal 
agencies regarding environmental damage arising from the previous 
mining operations in the area. The problems created by past mining 
include degradation of waters draining from mine portals, waste dumps 
and the tailings impoundment area, as well as spilled tailings along 
Blackbird Creek. Actions taken by federal and state agencies under 
Superfund authority have included a Natural Resource Damage Assessment 
which was settled by Consent Decree, and an Administrative Order on 
Consent (AOC) for the performance of early removal action and a 
Remedial Investigation/Feasibility Study (RI/FS) for site cleanup which 
is still ongoing.
    The area that may potentially be affected by the proposed Idaho 
Cobalt Project mining and mill operation drains to Big Deer Creek, and 
Panther Creek. Ninety-nine percent of the Panther Creek basin is 
National Forest; less than one percent is privately owned. Panther 
Creek flows into the Salmon River, a principal sub-basin of the Snake 
River. Preliminary environmental issues identified for the immediate 
project area are described below. Potential Project impacts outside 
this area include the transportation corridor (Salmon, Idaho to the 
project site); impact to the socio-economic areas of Lemhi and Custer 
Counties with the respective county seats of Salmon and Challis, Idaho; 
and line of sight visual impacts from Gant Ridge trails.
    The EIS will tier to the Salmon National Forest Land and Resource 
Management Plan (Forest Plan) and Final EIS, January 1988, which 
provide overall guidance of all land management activities on the 
Salmon National Forest, including mineral exploration and development. 
This document also tiers to the 1982 Final Environmental Impact 
Statement for the Blackbird Cobalt-Copper Project.

DATES: Written comments and suggestions must be submitted on or before 
October 31st, 2001.

ADDRESSES AND FURTHER INFORMATION: Submit written comments and 
suggestions on the proposed activities to Ray Henderson, Project 
Coordinator, Salmon-Challis National Forest, 50 Hwy 93 South, Salmon, 
Idaho, 83467, Phone (208) 756-5100. To be placed on the project mailing 
list or for additional information, contact the Project Coordinator 
identified above.

SUPPLEMENTARY INFORMATION: Formation Capital Corporation U.S. 
(Formation) submitted a Plan of Operations for the proposed Idaho 
Cobalt Project to the Salmon-Challis National Forest in January 2001. 
The plan, as proposed and subsequently modified by Formation, is 
summarized as follows:

[[Page 46993]]

    The proposed Idaho Cobalt Project would consist of developing an 
800-ton per day mine and mill complex. The project would involve mining 
cobalt-copper-gold reserves with an annual production rate of 280,000 
tons of ore at full production. Current reserves and resources would 
allow for a 9-year mine life. The ore would be mined from two deposits, 
the Ram and the Sunshine and conveyed to a mill situation on a plateau 
(The Big Flat). Underground mining methods are proposed, and a 
flotation mill would be used to process ore from the mine. At full 
production the mill would produce approximately 32 tons of concentrate 
and 768 tons of tailings per day. The concentrate would be shipped to 
an off-site hydrometallurgical facility.
    Ram and Sunshine ore would be hauled directly to the mill with 30-
ton trucks, where the ore would be stockpiled. The approximate haul 
distance to the proposed site of the mill from the Ram portal is 2.8 
miles and 1.5 miles from the Sunshine portal. Another proposal being 
considered for the Ram ore is an overhead tram from the 7070 Ram portal 
to the mill. A conceptual design for the tram includes a 70 cubic foot 
tramcar traveling on track cables and driven by a haul cable. Two 
pivoted intermediate towers, approximately 35 feed high, would support 
the track cables. The tramcar would be loaded from a hopper at the Ram 
portal, and the car would discharge into a hopper at the mill crusher. 
A third option for delivering the Ram ore to the mill is to develop a 
shaft in the second year. The shaft would be located near the mill, 
connecting to an adit joining the Ram underground workings.
    The proposed tailings disposal facility and the water management 
reservoir are also located on the Big Flat, east of the mill. Disposal 
of tailings in this area via a dry stacking method was proposed by 
Formation to take advantage of relatively flat topography, avoidance of 
wetlands, suitable foundation soils, elimination of the need for a 
tailings dam, and distance from active drainages and streams. 
Approximately 60 percent of the tailings would be required underground 
as backfill. Process waters would be managed and recycled in a closed 
system, using lined water management reservoirs located east and down 
slope of the tailings disposal site to reduce water requirements as 
well as eliminate the need for a water discharge. An additional 
modification includes the identification of 80 acres for Land 
Application of excess waters in the latter stages of mine life. The 
project would disturb 191 acres of National Forest Land.
    Power for the project would be secured from an existing power line 
delivering power to the Blackbird Mine. Emergency power would be 
supplied with diesel generating equipment located at the main portals 
and at the mill. This equipment would be sufficient only for essential 
mill equipment and mine pumps.
    It is anticipated that most of the project employees would live in 
the Salmon area. Employees would be transported to the project site by 
buses or vans assigned to personnel. The proposed transportation route 
for the employees is via the Williams Creek Summit, along the Williams 
Creek road, the Deep Creek road, the Panther Creek road and the 
Blackbird Creek road. The transportation route for the concentrates is 
also expected to be via Williams Creek Summit. Equipment, reagents and 
other freight would also be hauled in along this route.
    There would be three main phases in the life of the Idaho Cobalt 
Project: The construction phase, the production phase, and the 
reclamation phase. There would also be concurrent reclamation in the 
construction and production phases as existing disturbed areas or new 
disturbance is reclaimed post-use. The construction phase would include 
improving 1 mile of existing roads (4 acres), and the preparation and 
construction of 4.2 miles of new roads (20.5 acres), the portals and 
waste rock dumps (15.8 acres) tram corridor (4.8), the mill site (3.5 
acres), power line and substation (2.4 acres), tailings disposal site 
(20 acres), and the water management reservoir (13 acres). Soil 
stockpile areas, stormwater diversion ditches and borrow areas for 30 
acres, with 80 acres proposed for Land Application of reservoir waters 
towards the end of mine life.
    The production phase would bring the mill on line at 400-tons per 
day increasing to 800-tons per day as the underground Ram mine expands. 
Each of the project components is integral to the whole operation and 
therefore there would be limited opportunities for concurrent 
reclamation. However, there would be concurrent reclamation in some 
areas when active use stops. The reclamation phase would include final 
shaping of waste rock dumps, sealing mine portals, mill demolition, 
power line and substation dismantling, tailings disposal area shaping 
and revegetation, water management reservoir reclamation, and road 
reclamation.
    Cobalt is a strategic and industrial metal with a diverse range of 
critical and important uses. The largest single use is in super-alloys 
for air and land-based gas turbine engines. The fastest growing usage 
is in the battery industry for cell phones, pagers, portable computers 
and gasoline-electric hybrid power automobiles. Cobalt is used in 
computer hard disk drives, semiconductors, magnetic data storage and 
solar collectors. It is a component in the effort to reduce air 
pollution, as it is a catalyst for removing sulfur from oil to provide 
for clean burning fuels and has important medical uses as well.
    The Salmon Forest Plan provides guidance for management activities 
within the potentially affected area through its goals, objectives, 
standards and guidelines, and management area direction. The proposal 
would occur within Management Area 5B. Management emphasis in this area 
is on producing long-term timber outputs through a moderate level of 
investment in regeneration and thinning. It recognizes the potential 
for high-value locatable mineral occurrence and probable development. 
It directs that exploration, location, leasing and development of 
energy and non-energy minerals resources be coordinated with other 
resources.
    Under the United States Mining Laws of May 10, 1872, as amended (30 
U.S.C. 22), United States citizens and corporations have the right to 
search for and develop minerals upon public lands, including National 
Forest Systems lands, open to mineral entry. Forest Service regulations 
(36 FR 228, Subpart A) require that the agency work with mineral 
operators to minimize or eliminate adverse environmental impacts from 
mineral activities on National Forest System lands.
    The FS decision to be made in response to Formation's Plan is 
described by regulation at 36 CFR 228.5 and includes: (a) Approve the 
project as proposed, (b) Notify the operator of changes or additions to 
the plan of operations deemed necessary to meet the purpose of the 
regulations.
    These regulations also direct the FS to comply with the 
requirements of the National Environmental Policy Act (NEPA) in 
connection with each Plan of Operation. In this regard, the Salmon-
Challis Forest Supervisor has determined that an EIS is required to 
support a decision on the Idaho Cobalt Project. The EIS will analyze 
the direct, indirect, and cumulative environmental effects of the 
proposed Plan of Operation and other reasonable alternatives including 
mitigation, monitoring and reclamation measures designed to minimize 
adverse effects.
    Public participation is an important part of the analysis process 
(40 CFR 1501.7). Scoping activities to date have included a May 3, 2001 
meeting at the

[[Page 46994]]

forest headquarters in Salmon, Idaho, between representatives of the 
Salmon-Challis National Forest, Formation, and state and federal 
regulatory agencies in recognition of the Idaho Joint Review Process 
(JRP).
    A public scoping meeting was conducted on July 20th in Salmon, 
Idaho. Notices of the meeting were placed in the paper of Record for 
Salmon and Challis, the Recorder Herald and Challis Messenger. Comments 
from the public and other agencies will be used to prepare the Draft 
EIS. A public scoping meeting is also scheduled for October 11th in 
Salmon, Idaho. Meeting times and place will be placed in the papers of 
Record for the Salmon and Challis, the Recorder Herald and Challis 
Messenger. The public is encouraged to visit with Forest Service 
officials at any time during the analysis and prior to the decision.
    The scoping process to date has identified the following primary 
issues:
    1. What is the potential for development of acid mine drainage and 
mobilization of heavy metals from geologic materials exposed by the 
proposed mining activities.
    2. How would proposed mine facilities and activities prevent, 
control or treat ARD? What are the long-term maintenance requirements 
of these facilities along with their predicted long-term viability and 
stability?
    3. What is the potential for adverse impacts to water quality 
downstream of project facilities from the proposed mining activities, 
including accidental spills of hazardous materials along the 
transportation route, and how would water quality be maintained and 
beneficial uses protected?
    4. Would special status fish species and their habitat (threatened, 
endangered, sensitive) or species whose populations or habitat are 
present be adversely affected by the proposed mining activities?
    5. What is the relationship between this project and the current 
program to remediate the environmental damage at the Blackbird Mine and 
to re-establish an anadromous fishery in Panther Creek?
    6. Would surface water and groundwater quality monitoring be 
adequate to detect and allow for the correction of any water quality 
problems resulting from the proposed mining activities?
    7. What is the relationship of the aquifer systems between the 
proposed project and surrounding areas, particularly the Blackbird Mine 
and receiving streams? What is the existing quality of groundwater in 
the project area and how would the project affect existing groundwater 
quality?
    8. In recognition of the Clear Creek wildfire of the summer of 
2000, what are the potential effects on water quality from accelerated 
erosion and sedimentation, in consideration of surface disturbance 
associated with the proposed mining operations?
    9. Initial agency review identified specific issues regarding 
opportunities to reduce the number of waste rock facilities, 
consolidation of potentially acid generating material into separate 
locations, and lining of the tailings and water management reservoir.
    10. The water balance and geochemical aspect of the operation will 
receive a critical review and will include consideration of the option 
for land application for water management purposes.
    11. Opportunities exist to place a transportation system on the 
project site, which meets Forest guidelines, and to reclaim existing 
access not meeting standards.
    This list may be verified, expanded, or modified based on 
additional scoping for this proposal.
    In order to implement the project, the proponent, Formation, must 
obtain approval or conduct consultation with several other federal, 
state, and local regulatory agencies. These agencies include: U.S. Fish 
and Wildlife Service, National Marine Fisheries Service, Environmental 
Protection Agency, Army Corps of Engineers, Idaho Department of 
Environmental Quality, Idaho Department of Water Resources, Idaho State 
Historic Preservation Officer and Lemhi County, Idaho.
    The Salmon-Challis National Forest is the lead agency in the 
preparation of this EIS. The Idaho Department of Environmental Quality 
is a cooperating agency. (Other state or federal agencies may be 
identified as cooperating agencies as a result of the scoping process).
    The Draft EIS is expected to be filed with the Environmental 
Protection Agency (EPA) and available for public review in February 
2002. At that time, the EPA will publish a Notice of Availability of 
the Draft EIS in the Federal Register. The comment period on the Draft 
EIS will be 45 days from the date the EPA's notice of availability 
appears in the Federal Register. It is very important that those 
interested in this proposal participate at that time. To be most 
helpful, comments on the Draft EIS should be as specific as possible. 
The Final EIS is anticipated to be completed by July 2002.
    The Forest Service believes, at this stage, it is important to give 
reviewers notice of several court rulings related to public 
participation in the environmental review process. First, reviewers of 
draft environmental impact statements must structure their 
participation in the environmental review of the proposal so that it is 
meaningful and alerts an agency to the reviewer's position and 
contentions. Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 
553 (1978). Also, environmental objections that could be raised at the 
draft environmental impact statement stage, but that are not raised 
until after completion of the final environmental impact statement, may 
be waived or dismissed by the courts. City of Angoon v. Hodel, 803 F.2d 
1016, 1022 (9th Cir. 1986) and Wisconsin Heritages, ind. v. Harris, 490 
F. Supp. 1334, 1338 (E.D. Wis. 1980). Because of these court rulings, 
it is very important that those interested in this proposed action 
participate by the close of the 45-day comment period so that 
substantive comments and objections are made available to the Forest 
Service at a time when it can meaningfully consider them and respond to 
them in the final environmental impact statement.
    To assist the Forest Service in identifying and considering issues 
and concerns on the proposed action, comments should be as specific as 
possible. Reviewers may wish to refer to the Council on Environmental 
Quality Regulations for implementing the procedural provisions of the 
National Environmental Policy Act at 40 CFR 1503.3 in addressing these 
points.
    I am the responsible official for this Environmental Impact 
Statement. My address is Salmon-Challis National Forest, 50 Hwy 93 
South, Calmon, Idaho 83467.

    Dated: September 4, 2001.
George Matejko,
Forest Supervisor, Salmon-Challis National Forest.
[FR Doc. 01-22597 Filed 9-7-01; 8:45 am]
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