Press Release

SENATE COMMITTEE INTRODUCES CYANIDE BILL

The Senate Resources and Environment Committee has approved the introduction of a bill to regulate the use of cyanide in mining. The bill, proposed by the Idaho Mining Association, would significantly increase the bonding requirements for any new gold mines developed in the state.

Jack Lyman, Executive Vice President of IMA, told the committee the recent rise in the price of gold has increased the interest in developing Idaho's gold resources. "Prices are up 60 percent in the last three years," Lyman said. "In early December the price went over $450 an ounce, a 16-year high," he continued.

Under current law the Department of Environmental Quality has regulatory responsibility to review and approve the use of cyanide. DEQ also requires that a mining company provide a performance bond to guarantee that the cyanide facilities will be properly closed at the conclusion of mining. The agency's rules cap that bonding requirement at $100,000.

The bill introduced Friday would transfer the responsibility for financial assurance to the Idaho Department of Lands under the Surface Mining Act. That law already requires that a mining company post a bond for 110 percent of the total costs of reclaiming a mine. Under the bill, a mine using cyanide would be required to post another bond to cover 110 percent of the cost of closing the cyanide facilities. DEQ would retain all of its other authority to regulate such facilities.

"DEQ will continue to be responsible for assuring the protection of water quality from these mines," Lyman told the committee. "This legislation increases the bonding requirements and consolidates all of the bonding for a mine at a single agency, the Department of Lands," he continued.

"If this legislation is approved, any new gold mine will have to post bonds large enough to guarantee the state can reclaim the mine and close the cyanide facilities in the event the mining company can't," Lyman said. "It assures that state taxpayers won't get stuck with the bill for clean-up if a company fails to live up to its responsibilities."

No date has been set for the committee to consider the bill.