From The Crested Butte News (Mark Reaman):
In what has been described as a “serendipitous” and “interconnected” moment, there could be real headway in a permanent solution to the Mt. Emmons water treatment plant and overall molybdenum mine situation.
While very preliminary, the signals are good that this new path with new players, in part spurred by last summer’s dramatic Gold King Mine release into the Animas River, could bring about substantial changes to the Red Lady situation.
Gunnison County, the town of Crested Butte, several departments in the state, mining giant Freeport-McMoRan and U.S. Energy, the company with rights to the local molybdenum deposit, appear to be headed toward a collaborative deal to upgrade and permanently fund the water treatment plant on Coal Creek and address the idea of a potential mine.
This most recent chapter in a very long story started late last August when the county and the town sent a letter to the state and feds expressing serious concern over U.S. Energy’s ability to maintain the water treatment plant, especially if an accident occurred at the plant. U.S. Energy had been taking a giant financial hit with the decrease in energy prices and it has only gotten worse, with its stock selling this week for under 30 cents a share.
The two local governments sent a letter saying that the environmental and human health consequences of any release of untreated mine drainage are beyond the governments’ response capacity. They asked the Colorado Water Quality Control Division to reopen a permit renewal process for the mine’s discharge permit, which regulates the water treatment plant.
Several state agencies, including the Department of Natural Resources, the Colorado Water Quality Control Division, the State Attorney General’s Office and the Colorado Division of Reclamation Mining and Safety, set up a meeting in October. Crested Butte town attorney John Belkin, Gunnison County attorney David Baumgarten and special counsel for the town, Barbara Green, met with them to discuss concerns about U.S. Energy and its financial ability to continue operating the plant. By all accounts, it was a positive meeting.
Shortly after that, Freeport-McMoRan, a renowned international copper, gold and molybdenum miner that operates the Climax and Henderson moly mines in Colorado, also came into the picture. While it never had an interest in the molybdenum beneath Mt. Emmons, the company bought Phelps Dodge in 2007. That mining corporation had acquired the company that originally built the water treatment plant. Freeport in essence became tied to the site through a connection of mergers and acquisitions.