Golder Associates Inc. 44 Union Boulevard, Suite 300 Lakewood, CO USA 80228 Telephone: (303) 980-0540 Fax: (303) 985-2080 www.golder.com OFFICES ACROSS AFRICA, ASIA, AUSTRALIA, EUROPE, NORTH AMERICA AND SOUTH AMERICA CHINO CLOSURE/CLOSEOUT PLAN UPDATE CHINO MINES COMPANY HURLEY, NEW MEXICO Prepared for: New Mexico Environment Department Ground Water Protection & Remediation Bureau Runnells Building 1190 St. Francis Dr. Santa Fe, NM 87503 and Mining and Minerals Division Energy, Minerals and Natural Resources Department Pinon Building 1220 South St. Francis Dr. Santa Fe, NM 87505 Submitted by: Chino Mines Company 210 Cortez Street Hurley, New Mexico 88043 Distribution: 3 Copies, 1 Electronic - Mining and Minerals Division 3 Copies, 1 Electronic - New Mexico Environment Department August 28, 2007 073-80007
Transcript
Golder Associates Inc. 44 Union Boulevard, Suite 300 Lakewood, CO USA 80228 Telephone: (303) 980-0540 Fax: (303) 985-2080 www.golder.com
OFFICES ACROSS AFRICA, ASIA, AUSTRALIA, EUROPE, NORTH AMERICA AND SOUTH AMERICA
CHINO CLOSURE/CLOSEOUT PLAN UPDATE CHINO MINES COMPANY HURLEY, NEW MEXICO
Prepared for:
New Mexico Environment Department Ground Water Protection & Remediation Bureau
Runnells Building 1190 St. Francis Dr. Santa Fe, NM 87503
and
Mining and Minerals Division
Energy, Minerals and Natural Resources Department Pinon Building
1220 South St. Francis Dr. Santa Fe, NM 87505
Submitted by:
Chino Mines Company 210 Cortez Street
Hurley, New Mexico 88043
Distribution: 3 Copies, 1 Electronic - Mining and Minerals Division 3 Copies, 1 Electronic - New Mexico Environment Department August 28, 2007 073-80007
The principal mine facilities and components addressed in this CCP update include applicable
portions of the Santa Rita Open Pit, waste rock and leach ore stockpiles, tailing impoundments,
copper processing facilities, mine operations facilities and ancillary infrastructure. The financial
assurance amount is based upon the following closure scenario:
• closure of stockpiles and tailing impoundments would rely on a combined approach involving source control (soil covers) and complementary surface and subsurface water control measures and water treatment;
• the cover systems would be placed on mining substrates graded to allow stormwater to runoff while reducing percolation and soil loss from erosion;
• the cover systems would be seeded to establish a self-sustaining ecosystem, remove water and stabilize the soils;
• surface water control structures would be designed to convey water in a manner that maintains the integrity of the adjoining soil covers;
• subsurface water control measures would be operated to limit the impacts to groundwater resources.
• the bulk of the mine process solutions would be eliminated by recirculation and evaporation and the remaining solutions would be collected, treated, and prepared for final discharge;
• impacted waters would be treated using a lime neutralization method followed by commingling with tailing process water and make-up groundwater; and
• some existing stormwater reservoirs and other mine process water management facilities would be used to facilitate conveyance of water to the treatment plant during post-closure, while others would be permanently closed.
Chino’s cost estimate in this CCP update is based on the end-of-2007 mine conditions and assumes
the work would be performed by third-party contractors. The estimated capital cost to reclaim the
principal mine facilities is about $200 million. This cost includes reclamation of stockpiles, tailing
impoundments, reservoirs, and other mine areas, and construction of a water treatment system.
Because Chino will continue to integrate closure decisions into mine planning and operational
decisions to promote efficiency in the closure process and reduce the amount of disturbed land, out-
year costs are expected decrease relative to the end-of-year 2007 costs.
Post-closure operations, maintenance, and monitoring costs were estimated for a 100-year period
following completion of the reclamation. The total cost for post-closure is subject to prediction of the
1.0 INTRODUCTION..............................................................................................................1 1.1 Purpose of Plan ................................................................................................................... 1 1.2 Plan Organization ............................................................................................................... 1 1.3 Regulatory Framework ....................................................................................................... 2
1.3.1 The New Mexico Mining Act and Administrative Rules............................................. 2 1.3.2 New Mexico Water Quality Act and the New Mexico Water Quality Control Commission Regulations........................................................................................................... 5 1.3.3 Office of the State Engineer (OSE) Rules and Regulations Governing the Drilling of Wells and the Appropriation and Use of Ground Water ....................................................... 6 1.3.4 Agency Coordination. .................................................................................................. 6
1.4 Closure Summary ............................................................................................................... 7 1.4.1 History of Mining Activity at Chino ............................................................................ 7 1.4.2 Active Mining and Ore Beneficiation Operations at Chino ......................................... 8 1.4.3 Closure Activities ......................................................................................................... 9
1.5 Description of Updated Plan............................................................................................. 12 1.6 Summary of Financial Assurance ..................................................................................... 13
2.0 EXISTING FACILITIES AND CONDITIONS.............................................................14 2.1 Description of Mining Facilities ....................................................................................... 14
2.1.1 Santa Rita Open Pit .................................................................................................... 15 2.1.2 Waste Rock, Leach and Cover Material Stockpiles ................................................... 15 2.1.3 Maintenance Facilities Area....................................................................................... 18 2.1.4 Solution Extraction/Electrowinning Plant.................................................................. 18 2.1.5 Ivanhoe Concentrator ................................................................................................. 18 2.1.6 Groundhog Mine Area................................................................................................ 19 2.1.7 Hurley Power Plant .................................................................................................... 19 2.1.8 Tailing Impoundments ............................................................................................... 19 2.1.9 Water Management System........................................................................................ 22 2.1.10 Other Ancillary Facilities, Structures, and Systems.................................................. 23
2.2 History of Mining at Chino............................................................................................... 23 2.3 History of Land Ownership .............................................................................................. 24 2.4 Past and Current Land Uses.............................................................................................. 25 2.5 Environmental Setting ...................................................................................................... 25
2.6.3 NPDES Multi-sector Stormwater General Permit...................................................... 38 2.6.4 Water Rights............................................................................................................... 38 2.6.5 Air Quality.................................................................................................................. 39 2.6.6 Other Permits.............................................................................................................. 39 2.6.7 Plans of Operation ...................................................................................................... 39 2.6.8 Administrative Order on Consent (AOC)................................................................... 40 2.6.9 Operational Discharge Plans ...................................................................................... 40
3.0 TECHNICAL CONSIDERATIONS FOR RECLAMATION.......................................44 3.1 Reclamation Plan .............................................................................................................. 44 3.2 Units of Reclamation ........................................................................................................ 44
3.2.1 DP-376: Lampbright Leach System ........................................................................... 44 3.2.2 DP-591: Area, SX/EW Plant and Reservoirs 6 and 7 ................................................ 46 3.2.3 DP-459: North Pit Stockpiles, Reservoir 5, and Santa Rita Open Pit ........................ 48 3.2.4 DP-493: Reservoir 3A............................................................................................... 50 3.2.5 DP-526: Whitewater Leach System (Stockpiles and Facilities)................................. 51 3.2.6 DP-213: Ivanhoe Concentrator and Associated Pipelines Areas................................ 55 3.2.7 DP-214: Hurley Operation, Lower Whitewater Creek, Lake One and Older Tailing Impoundments Areas............................................................................................................... 57 3.2.8 DP-484: Tailing Pond 7 Area..................................................................................... 60
4.0 POST-MINING LAND USE DESIGNATION..............................................................62 4.1 Post-Mining Land Use Overview ..................................................................................... 62 4.2 Wildlife Habitat Post-mining Land Use ........................................................................... 63 4.3 Industrial Post-mining Land Use ...................................................................................... 64 4.4 Site-Specific Revegetation Success Guidelines................................................................ 65
6.1 Facility Characteristics and Classification........................................................................ 76 6.1.1 Tailing Impoundments ............................................................................................... 77 6.1.2 Stockpiles ................................................................................................................... 77 6.1.3 Santa Rita Open Pit .................................................................................................... 77 6.1.4 Reservoirs/Dams ........................................................................................................ 78 6.1.5 Other Disturbed Areas................................................................................................ 78 6.1.6 Ancillary Work........................................................................................................... 79
6.2 Performance Objectives and Reclamation Designs .......................................................... 79 6.2.1 Tailing Impoundments ............................................................................................... 80 6.2.2 Stockpiles ................................................................................................................... 82 6.2.3 Santa Rita Open Pit .................................................................................................... 85 6.2.4 Reservoirs/Dams ........................................................................................................ 85 6.2.5 Disturbed Areas.......................................................................................................... 86 6.2.6 Borrow Areas ............................................................................................................. 86
6.3 Water Management and Treatment................................................................................... 88 6.3.1 Management and Treatment Processes ...................................................................... 88 6.3.2 Evaporation Treatment System and Process Water Elimination................................ 89 6.3.3 Sludge Management ................................................................................................... 90
6.4 Reporting, Post-closure Monitoring and Contingency Plans............................................ 90 6.4.1 Erosion and Drainage Control Structures................................................................... 91 6.4.2 Groundwater and Surface Water Control Facilities ................................................... 91 6.4.3 Revegetation Success Monitoring .............................................................................. 93 6.4.4 Wildlife Monitoring ................................................................................................... 93
7.0 SUMMARY OF CLOSURE/CLOSEOUT PLAN ACTIVITIES..................................94 7.1 Discharge Plan Areas........................................................................................................ 94
7.1.1 DP-376: Lampbright Leach System (Lampbright Stockpiles and Reservoir 8 Areas)94 7.1.2 DP-591: SX/EW and Reservoirs 6 and 7 ................................................................... 96 7.1.3 DP-459: Main Pit, North In-Pit Leach System, and Northeast, North, Northwest, and Lee Hill Waste Rock Piles and Stockpiles and Reservoir 5 ............................................ 97 7.1.4 DP-493: Reservoir 3A................................................................................................ 99 7.1.5 DP-526: Whitewater Leach System (Stockpiles and Facilities Area) ...................... 100 7.1.6 DP-213: Ivanhoe Concentrator and Associated Pipelines........................................ 102 7.1.7 DP-214: Hurley Operation Area, Lake One, Older Tailing Impoundment Area, Axiflo Lake, Lower Whitewater Creek ................................................................................ 103 7.1.8 DP-484: Tailing Pond 7 Area................................................................................... 106
7.2 Additional Mining Facilities not Considered in Other Sections ..................................... 107 7.2.1 Mine Maintenance Facilities .................................................................................... 107 7.2.2 Groundhog Mine Stockpile Area ............................................................................. 108 7.2.3 Groundhog No. 5 Stockpile Reclamation................................................................. 109 7.2.4 South Mine Area Cover Material Borrow Pit........................................................... 110 7.2.5 East Mine Pit Access Road ...................................................................................... 111
8.0 CAPITAL AND OPERATION AND MAINTENANCE COST ESTIMATES.........112 8.1 Capital Cost Estimates .................................................................................................... 112 8.2 Basis of Capital Cost Estimates ...................................................................................... 113 8.3 Operation and Maintenance Cost Estimates ................................................................... 113
8.3.1 Earthwork ................................................................................................................. 113 8.3.2 Water Treatment....................................................................................................... 113
Table 2-1 Chino Resource Model Geological Code Descriptions Table 2-2 Summary of Reservoirs Table 2-3 Summary of Chino Closure/Closeout-Related Permits Table 2-4 Summary of NMED Discharge Plans Table 4-1 Proposed Interim Seed Mix and Rates for the North Mine Area Table 4-2 Proposed Interim Seed Mix and Rates for the South Mine Area Table 4-3 Functions and Attributes of the Primary Plant Species Table 4-4 Industrial PMLU Designation Table 4-5 Plant Diversity Guidelines Table 6-1 Summary of Tailing Impoundment Footprint Areas Table 6-2 Summary of Stockpile Footprint Areas Table 6-3 Summary of North Mine Area Reservoir Closure/Close-Out Function Table 6-4 Summary of Tailing Impoundment Long-Term Slope Stability Analysis Table 6-5 Summary of Stockpile Long-Term Slope Stability Analysis Table 9-1 Reclamation Schedule
LIST OF FIGURES
Figure 1-1 Location Map Figure 2-1 Chino Mines Facilities Map Figure 2-2 Chino Ore-Processing Operations – Schematic Diagram Figure 2-3 North Mine Area – Stockpiles and Reservoirs Figure 2-4 South Mine Area – Tailing Impoundments Figure 2-5 Water Use and Supply Cycle – Schematic Diagram Figure 2-6 Site Topography Figure 2-7 Groundwater Elevation Map - North Mine Area Figure 2-8 Groundwater Elevation Map – Pipeline Corridor Area Figure 2-9 Groundwater Elevation Map – South Mine Area (2003) Figure 2-10 Vegetation Communities - North Mine Area Figure 2-11 Vegetation Communities – South Mine Area Figure 2-12 Discharge Permit Areas Figure 3-1 DP-376: Lampbright Leach System Area Figure 3-2 DP-591:SW-EX Plant Area Figure 3-3 DP-459: Santa Rita Open Pit Area Figure 3-4 DP-493/526: Whitewater Leach System/Reservoir Area Figure 3-5 DP-213: Ivanhoe Concentrator/Precipitation Plant Area Figure 3-6 DP-214: Hurley Operation Area Figure 3-7 DP-214: Older Tailing Impoundments
Appendix A Reclamation Drawings Appendix B Facility Characteristic Forms Appendix C Earthwork Cost Basis and Estimate Appendix D Water Treatment Cost Basis and Estimate
ac-ft/yr acre-feet per year AGP acid generation potential amsl above mean sea level ANP acid neutralization potential AOC Administrative Order on Consent bgs below ground surface BLM Bureau of Land Management CCP Closure/Closeout Plan Chino Chino Mines Company CERCLA Comprehensive Environmental Response, Compensation, and Liability Act CGCS Comprehensive Groundwater Characterization Study COC constituent of concern CQA construction quality assurance DBS&A Daniel B. Stephens & Associates DP Discharge Plan DSM dynamic system modeling EIS Environmental Impact Statement EOY end of year EPA Environmental Protection Agency (U.S.) ETS evaporation treatment system ft amsl feet above mean sea level ft bgs feet below ground surface ft/d feet per day ft2/d square-feet per day ft/ft foot per foot ft3/s cubic feet per second gpm gallons per minute H:V horizontal to vertical (not defined in text) HDPE high-density polyethylene HDS high density sludge IRA interim remedial action IU investigation unit kWh kilowatt-hours lime/HDS lime precipitation and high density sludge M3 M3 Engineering and Technologies mg/L milligrams per liter
MMD Mining and Mineral Division (New Mexico Energy, Minerals, and Natural Resources Department)
MMD Permit Permit GR009RE issued by the Director of the MMD MWMP meteoric water mobility procedure MWWCA Middle Whitewater Creek Area, also called the Pipeline Corridor Area (PCA) Myd3 million cubic yards NMA North Mine Area NMAC New Mexico Administrative Code NMED New Mexico Environment Department NMMA New Mexico Mining Act NMOSE New Mexico Office of the State Engineer NMWQA New Mexico Water Quality Act NPDES National Pollutant Discharge Elimination System NRCS Natural Resources Conservation Service (U.S., formerly the Soil Conservation
Service) O&M operations and management OPCZ open pit capture zone PCA Pipeline Corridor Area (also referred to as the Middle Whitewater Creek Area or
MWWCA) pH PLS pregnant leach solution PMLU post-mining land use R&LC rhyolite and leached cap SBR8 spring below Reservoir 8 SCS Soil Conservation Service (U.S., now Natural Resources Conservation Service) SMA South Mine Area SPLP synthetic precipitation leaching procedure SWQB Surface Water Quality Bureau (NMED) SX/EW solution extraction-electrowinning TDS total dissolved solids TDRW tailing decant return water USNVC U. S. National Vegetation Classification VOC volatile organic compounds WQCC Water Quality Control Commission (New Mexico Environment Department) yd3 cubic yard
Chino Mines Company (Chino) operates an open-pit copper mine, concentrator, and solution
extraction-electrowinning (SX/EW) plant located approximately 10 miles east of Silver City in Grant
County, New Mexico (Figure 1-1). This updated Closure/Closeout Plan (CCP) modifies the 2005
update and presents Chino’s current plan and financial assurance.
1.1 Purpose of Plan
The Chino CCP was updated to fulfill the requirements of the following two permits:
• Supplemental Discharge Plan DP-1340 (DP-1340), issued by the New Mexico Environment Department (NMED) on February 24, 2003 (NMED, 2003); and
• Revision 01-1 to Permit GR009RE (MMD Permit), issued by the Director of the Mining and Minerals Division (MMD) of the New Mexico Energy, Minerals and Natural Resources Department on December 18, 2003 (MMD, 2003).
Condition 1 of DP-1340 requires Chino to submit to NMED an updated closure plan by August 28,
2007, which is 180 days prior to the expiration date of the permit. Section S of the MMD Permit
stipulates that a revised closeout plan be submitted to MMD by April 30, 2008. This CCP supersedes
the February 2005 CCP Update (Chino, 2005), and the End of Year 2001 through 2006 CCP (M3,
2001).
1.2 Plan Organization
This section describes the purpose and scope of the CCP Update and its overall organization.
• Section 1.0 provides an overview of this CCP.
• Section 2.0 describes the current environmental setting of Chino including geology, fauna, flora, history, existing facilities, current disturbances, and discharge permits.
• Section 3.0 describes the facilities, materials characteristics, site-specific hydrologic conditions, and the known and potential impacts to the environment associated with each of the operational discharge permits for Chino.
• Section 4.0 details the proposed post-mining land uses for Chino and the associated requirements for the individual areas.
• Section 5.0 presents the status of the studies required in the MMD Permit (Section 8.L) (MMD, 2003) and the DP-1340 (Conditions 79 through 93) (NMED, 2003).
• Section 6.0 describes the proposed reclamation and post-closure monitoring plans for the major mine facilities and operational discharge plan (DP) areas.
• Section 7.0 summarizes the current and planned CCP activities.
• Section 8.0 presents a summary of the capital and operation and maintenance cost estimates.
• Section 9.0 presents a closure schedule for the plan
• Section 10.0 lists the references used in preparation of this CCP.
• Appendix A includes the updated drawings that illustrate the CCP.
• Appendix B includes the updated facility characteristic forms.
• Appendix C includes the updated cost estimate for earthwork.
• Appendix D includes the updated cost estimate for water treatment.
1.3 Regulatory Framework
Chino’s mineral extraction and beneficiation activities take place within a complex regulatory
framework. The statutes and regulations that apply to this CCP include, but are not limited to, the
following:
• The New Mexico Mining Act (NMMA) and administrative rules;
• New Mexico Water Quality Act (WQA), and the New Mexico Water Quality Control Commission (WQCC) Regulations; and
• Office of the State Engineer (OSE) rules and regulations governing the drilling of wells and the appropriation and use of ground water.
1.3.1 The New Mexico Mining Act and Administrative Rules
The NMMA, which was enacted by the New Mexico legislature in 1993, requires that closeout plans
be put in place for mines within the state. The legislature established a goal of promoting responsible
utilization and reclamation of lands impacted by mining while also recognizing that mining is vital to
New Mexico. Rules to implement the requirements of the NMMA were promulgated in 1994. The
• Post-Closure Land Use. A discussion of post-mine land use(s) proposed by the Permittee for the mine site. A justification for each separate proposed land use should be provided;
• Waiver from Self-Sustaining Ecosystem or Post Mining Land Use. The Permittee should identify and provide justification for each area of the mine where a waiver from the self-sustaining ecosystem is requested;
• Description of Closeout Activities. A description of the reclamation; removal of trash, equipment and debris; disposal of wastes; stabilization; monitoring programs to address post-closeout site conditions and safe-guarding work to be performed;
• Environmental Standards Compliance. Information necessary to demonstrate compliance with environmental criteria;
• Closeout Plan Schedule. A schedule providing a timetable for the various stages of closeout work to be performed;
• Closeout Permitting Requirements. A list of all federal and state permits required for the completion of the closeout plan;
• Post-Closeout Map(s). A topographic map of the anticipated surface configuration upon completion of the closeout plan;
• Cost Estimate for Closeout. A cost estimate for the proposed closeout work; and
• Appendices. Any additional information necessary to support the closeout activities.
The NMMA requires that each operator post, prior to obtaining a permit, financial assurance
“sufficient to assure the completion of the performance requirements of the permit, including closure
and reclamation, if the work had to be performed by the director or a third party contractor.” The
financial assurance estimate should reflect the probable difficulty of reclamation or closure and
include, at a minimum, the following costs; mobilization, demobilization, engineering re-design,
profit and overhead, procurement costs, reclamation or close out management and contingencies. The
Act specifies the forms of allowable financial assurance, which include trust funds, guarantees,
collateral and letters of credit. Permittees are also allowed to use mechanisms such as “net present
value” and to accelerate their reclamation work to decrease their financial assurance obligations.
1.3.2 New Mexico Water Quality Act and the New Mexico Water Quality Control Commission Regulations
The Mining and Environmental Compliance Section of the New Mexico Environment Department
Ground Water Quality Bureau (NMED) conducts all of the permitting, spill response, abatement and
public participation activities for mining facilities in New Mexico in accordance with the WQCC
regulations (20.6.2 NMAC). In addition, the NMED participates in the implementation of the
NMMA regulations by reviewing and commenting on mine permits and closeout plans, coordinating
environmental protection requirements at mine sites with the MMD, and providing determinations
that environmental standards will be met after closure of mining operations.
The Permittee is responsible for providing the necessary information to the NMED to allow the
Secretary to make a determination that the facility’s closeout plan is expected to achieve compliance
with all applicable environmental standards if carried out as described. These environmental
standards related to water quality are:
• Ground water standards under the WQCC regulations. The information for this part of the determination comes from evaluations of potential historic and current mining activity sources of impact to ground water quality. This evaluation process typically includes data from field measurements of discharge and/or leachate quality, ground water monitoring data collected pursuant to operational discharge permits, and modeling.
• Standards for Interstate and Intrastate Streams adopted by the WQCC. New Mexico’s surface water quality standards were developed under the State Water Quality Act and are consistent with the federal Clean Water Act. The Permittee must demonstrate the proposed closeout plan will meet applicable water quality standards under Section 1102, include adequate monitoring and other commitments to demonstrate that the standards will be met and include corrective action procedures that will be implemented in the event that standards are not met.
The NMED requires that the Permittee submit engineered designs for caps; covers; acid rock drainage
controls; and ground water remediation systems that are components of closure; surface water
protection and/or remediation systems that are components of closure; closure specifications for
raffinate ponds, pregnant leachate collection ponds and other impoundments; closure specifications
for pipeline dismantling, removal, and closure in-place; and monitoring well abandonment
procedures. In addition, the closure plan should include a post-closure monitoring plan and a
contingency plan to address a potential exceedance of applicable ground water standards. The NMED
must also review and approve the financial assurance plan.
results of the Feasibility Study figured prominently in the closure decisions that are represented in this
plan.
The site conditions assumptions used for this CCP update are not static, however. Monitoring well
data is regularly collected in accordance with the operational discharge permits. Chino is also
performing a number of studies pursuant to conditions in the current version of DP-1340 and under
the Administrative Order on Consent (AOC). The AOC studies address historical impacts to soil,
sediment and surface water. The constant flow of information that results from all this ongoing work
required Chino to establish a cut off date of June 1, 2007 with the agencies relative to new data and
information that would be incorporated into this CCP update. It is likely that the results of the
ongoing studies may alter some of the assumptions used in this CCP update.
The Site Wide Abatement process is proceeding according to 20.6.2.4106 NMAC and Conditions 30
through 33 of DP-1340. The results of this process may influence the CCP. Chino believes that
alternative abatement standards may be necessary for some constituents at one or more locations. The
abatement standards and requirements in 20.6.2.4103(E) will allow Chino to propose alternative
abatement standards upon a demonstration of the following:
• compliance with the standard is not feasible by the maximum use of technology, within the economic capability of the responsible person or there is no reasonable relationship between the economic and social costs and benefits;
• the proposed alternative abatement standard is technically achievable and cost-benefit justifiable; and
• compliance with the proposed alternative standard will not create a present or future hazard to public health or undue damage to property.
The current phase of field work for the Stage 1 abatement investigation started in May 2007 and is
still ongoing. The objectives of Stage 1 are to define site conditions and provide the data necessary to
select and design an effective abatement option. Once Stage 1 is completed the Stage 2 process will
be used, if necessary, to propose alternative abatement standards for NMED’s approval. These
alternative standards would then be used to drive the evaluation of cleanup technologies used at the
time of actual closure.
Chino’s current mine plan projects that active mining will continue for many years. Active mining
means the mining and hauling of ore for beneficiation at the concentrator or on leach stockpiles.
requirements stipulated in the NMMA (NMAC Title 19, Chapter 10, Part 5), New Mexico Water
Quality Act (NMWQA), and the New Mexico Water Quality Control Commission (NMWQCC)
Regulations (NMAC Title 20, Chapter 6, Part 2).
1.6 Summary of Financial Assurance
For financial assurance purposes, the total estimated cost to implement this updated CCP is a capital
cost of $200 million and operations and maintenance cost of $293 million. The estimated costs were
developed consistent with Condition 101 in DP-1340 and Subpart 12 in the New Mexico Mining Act
Rules. Capital costs, operating costs, and maintenance costs associated with third-party
implementation of the CCP, as well as long-term operation and maintenance for a period of
100 years, have been developed for this updated plan (Section 8). The cost estimate includes direct
costs, contingency costs and indirect costs. The EOY-2007 scenario, used to develop the financial
assurance cost estimate, reflects the most conservative cost scenario for closure/closeout in the time
period between 2007 and 2013. This assumption is based on several considerations, but principally
the following:
• Where practical and economic, mining work after year 2007 should incorporate “mining-for-closure” practices to accommodate the reclamation, such as placement of mined materials in stockpiles outside the open pit capture zone (OPCZ) in a manner that reduces the volume of materials that must be moved to achieve post-closure slope configurations.
• Ongoing reclamation activities at the Groundhog Mine Area (currently on hold pending regulatory review), upcoming reclamation activities such as Chino Tailing Reclamation (Golder-URS, 2007), and other accelerated reclamation projects that may be completed between 2007 and 2013, are expected to reduce the overall financial assurance liability at Chino.
• Development of a borrow source near the Lampbright Stockpiles should be completed as part of mining operations and would be expected to reduce the cost of transporting cover material during reclamation in the Lampbright and north pit areas.
• Construction of the in-pit Lee Hill Stockpile and leach facilities will allow stockpile material, which otherwise would have to be placed in stockpiles outside the OPCZ, to be placed within the OPCZ during mining operations,
• Where practical and feasible as part of mining operations, final placement of material on the top surfaces of the stockpiles will be done safely and efficiently drain water off these top surfaces.
The following sections describe the Chino mining facilities and operations, ownership history, past
and current land uses, environmental setting (such as topography, geology, hydrology, climate, and
wildlife), and mine material characteristics. In addition, pertinent permits and operational DPs are
summarized.
2.1 Description of Mining Facilities
The general layout of the mine facilities at Chino is presented in Figure 2-1. The ore processing
operations are schematically illustrated in Figure 2-2.
The principal mine facilities and main mine components include:
• Santa Rita Open Pit;
• Waste Rock and Leach Ore Stockpiles;
• Mine Maintenance Facilities;
• SX/EW Plant;
• Ivanhoe Concentrator;
• Groundhog Mine;
• Active Pond 7 and inactive Older Tailing Impoundments;
• Water Management System (including reservoirs); and
• Ancillary Infrastructure.
These facilities are discussed below. For the purposes of CCP Update, the Chino Mine has been
separated into three geographical areas (Figure 2-1):
• The North Mine Area (NMA) (Figure 2-3) includes the Santa Rita Open Pit, waste rock and leach ore stockpiles, maintenance facilities, SX/EW Plant, Ivanhoe Concentrator, and most of the water management system in the area of the Santa Rita Pit.
• The Pipeline Corridor Area (PCA), also referred to as the Middle Whitewater Creek Area (MWWCA) (Figure 2-1), extends from the Ivanhoe Concentrator (in the NMA) to the north end of Lake One and the Hurley Operation Area.
• The South Mine Area (SMA) (Figure 2-4) includes Lake One, active and inactive Older Tailing Impoundments and the Hurley Operation Area. It encompasses the tract from the north end of Lake One to the confluence of Whitewater Creek with San Vicente Arroyo, approximately 12 miles to the south.
Presently, the mine operates on a three-shift-per-day, seven-day-per-week basis. Rock is fragmented
using conventional drilling and blasting techniques. After blasting, the following materials are loaded
into haul trucks for delivery to the appropriate destination:
• sulfide ore with a copper content above mill cutoff grade is delivered to the primary crusher west of the pit and then to the Ivanhoe Concentrator (Section 2.1.5) for processing;
• leachable ore is delivered to leach stockpiles around the periphery of the pit and to the Lampbright Stockpiles; and
• waste rock (material below leach cut-off grade) is stockpiled in several locations around the pit;
• overburden suitable for cover materials is currently stockpiled on the Upper South Stockpile.
2.1.1 Santa Rita Open Pit
The Santa Rita Open Pit is about 1,500 feet deep, 1.8 miles in diameter, and covers an area of
approximately 1,500 acres. It includes the Lee Hill, Town Site Island, South and East pit areas, and a
number of pregnant leach solution (PLS) booster and pit dewatering collection sumps joined by a
network of pipelines. The uppermost level of the pit rim is on the south side at an elevation of
approximately 6,600 feet above mean sea level (ft amsl), and the lowest level in the pit is near the
south-center of the pit at an elevation of approximately 5,000 ft amsl. The pit was developed in
benches with 50-foot vertical highwalls. The primary crusher is located approximately 3,200 feet
west of the pit at an elevation of 6,200 ft amsl.
2.1.2 Waste Rock, Leach and Cover Material Stockpiles
Several stockpiles are located in and near the Santa Rita Pit. The stockpiles generally fall into three
types: 1) leach stockpiles, which are used to extract copper from oxide ore; 2) waste rock stockpiles,
which are store excavated materials that have little or no copper value in current economic analysis;
and, 3) cover material stockpiles, which are set aside to store overburden suitable for future
The South, Upper South, and West Stockpiles are located south and west of the Santa Rita Open Pit
(Figure 2-3). These South and West Stockpiles are low-grade leach stockpiles. The Upper South
Stockpile is a waste rock stockpile. Stockpiling of low-grade copper ore on the West Stockpile began
in 1969. Mined rock was placed on the South Stockpile as early as 1940. The Upper South Stockpile
contains waste rock and overburden suitable for reclamation. Chino has dedicated the upper lifts of
this Upper South Stockpile for storage of reclamation cover materials.
A number of stormwater and process water collection systems are associated with the South and West
Stockpiles, including:
• Reservoirs 4A and 2 receive stormwater and process water overflow;
• Dam 17 is a stormwater reservoir;
• Reservoir 9 as stormwater reservoir;
• Runoff and seepage containment dams and sumps have been installed along the base of the west side of the West Stockpile (these facilities are on its western side to prevent surface and shallow subsurface flow to Hanover Creek and form an arc from the northwestern corner of the West Stockpile and its west side between the toe and Hanover Creek); and
• PLS from the West and South Stockpiles is collected in collection systems such as the unlined PLS launder, PLS collection pond and/or Reservoirs 2 and 4A. The PLS is transferred to the stainless steel PLS tank and pumped to the Solvent Extraction/Electrowinning (SX/EW) Plant.
Santa Rita Open Pit Stockpiles
Four stockpiles occur within and along the perimeter of the Santa Rita Open Pit and are known as the
North In-Pit Leach, North, Northwest and Northeast Stockpiles (Figure 2-3). The North, Northwest,
and Northeast Stockpiles contain both overburden and waste rock. The North In-Pit Leach Stockpile
contains low-grade ore. PLS from the North In-Pit Leach Stockpile is collected in sumps and pumped
to the SX/EW Plant. Reservoir 5, located north of the North Stockpile and north of Highway 152,
collects stormwater runoff and is used as makeup water for the process water system.
ore concentration process is currently gravity fed by pipeline and deposited by crane-mounted
cyclones on Tailing Pond 7 at the southern end of the tailing facility.
Older Tailing Impoundment Area
The Older Tailing Impoundment Area includes Tailing Ponds 1, 2, B, C, 4, 6E and 6W, along with
Lake One, which historically stored water for the former Hurley Mill and Axiflo Lake, which is
currently used as a process water reservoir. Beginning in 1991 Chino started covering these tailing
impoundments with native soils to reduce wind-blown dust.
Ancillary facilities associated with the older tailing impoundments include:
• A Class D solid waste landfill, Tailing Pond 1 landfarm (closed in 2005), and tailing and reclaim water pipelines. The Class D landfill was operated under the authority of New Mexico solid waste management regulations.
• The Tailing Pond 1 landfarm has been closed according to a closure plan approved by NMED on November 21, 2005. The closure report was approved by NMED on April 28, 2006. The closed landfarm facility occupies less than an acre and on the southern edge of Tailing Pond 1. The landfarm was used to treated non-hazardous hydrocarbon-contaminated soils.
Tailing Ponds 1, 2, B, C, 4, 6E and 6W
Beginning in 1910, tailing generated by the decommissioned Hurley Concentrator, was deposited in a
series of older impoundments (Tailing Ponds 1, 2, B, C, 4, and 6). Starting in 1982 tailing from the
Ivanhoe Concentrator was disposed in Tailing Pond 6 (East and West). The Older Tailing
Impoundments are inactive, with the exception of Tailing Pond 4 and the southern portions of the
Pond 6E and 6W area, which are used for emergency discharges of tailing and stormwater.
Lake One
Lake One was created in 1910 to collect and store water for use in the Hurley Mill. The lake was
created by constructing an earth-fill dam southeast of the Hurley Operation Area. Until 1955 the
water in the lake was used in the milling process. Over time, Lake One gradually filled with
materials from Whitewater Creek and tailing from the milling operations. After 1955 the water in the
lake became unacceptable for use in the mill, due to low pH, and was sent to the thickeners to be
neutralized by excess alkalinity in the tailing. The water was then used to convey tailing to the
lies along its southern edge. The system consists of 18 wells that are used to intercept groundwater at
the south end of Tailing Pond 7.
The initial design maximum height of the dam is approximately 230 feet at a crest elevation of
5,475 ft amsl. The design capacity of Tailing Pond 7 is 415 million tons with an average existing
exterior slope of 4(H):1(V).
2.1.9 Water Management System
Chino’s water management system provides process make-up water, process solutions, and controls
stormwater. Figure 2-5 illustrates the water supply and use cycle at the mine. The system consists of
the following facilities:
• production wells that supply process water;
• reservoirs for storage of process water, stormwater runoff, and some of the ephemeral flows in the major drainages (i.e., James Canyon fresh water diversion and reservoir);
• Cobre to Chino pipeline;
• various tanks and sumps that collect and store process solutions;
• diversion structures for rerouting natural drainage channels around operational facilities; and
• pipelines and pumping stations for transferring water from one location to another.
Several well fields supply much of the water used to operate the mine. These well fields include
production and dewatering wells and interceptor well systems in the Santa Rita Open Pit Area,
interceptor wells south of Pond 7, and production wells south and east of the tailing impoundments.
Groundwater has also been pumped from underground workings in the Santa Rita Open Pit Area.
In the NMA, several reservoirs serve to control PLS, process solutions, and stormwater runoff,
throughout the mine site (See Figure 2-3). Table 2-2 lists the reservoirs, impoundments, sumps, and
storage tanks in operation at the mine. Chino practices water conservation through the recirculation
of process water and treatment and reuse of municipal wastewater from nearby towns.
Major diversion channels that are part of the Chino stormwater and stream flow management system
include:
• the North Diversion Channel that routes runoff around the Lampbright Stockpiles to Lampbright Draw.
• the Whitewater Creek diversions in the SMA that include the 1911 diversion around the Older Tailing Impoundment Area, the 1984 diversion around Lake One, the 1988 and 1998 diversions around Tailing Pond 7, and the James Canyon Diversion completed in 2003.
2.1.10 Other Ancillary Facilities, Structures, and Systems
In addition to the major project facilities, structures, and processes identified above, there are a
number of ancillary facilities that support operations at Chino including:
• administrative/office facilities;
• outdoor lighting;
• haul and access roads;
• electrical power transmission lines;
• explosive, fuel, and reagent storage areas;
• drainage, diversion, and sediment control structures;
• fencing and security systems;
• horizontal drains used to manage slope water;
• dust suppression system; and
• various pipelines.
2.2 History of Mining at Chino
Chino is the largest copper mine in New Mexico and among the oldest in the U.S. The Chino (Santa
Rita) copper deposits were known to the Apache Indians prior to Spanish settlement (M3, 2001). The
Spanish learned of the deposits by the 1770s and began development of the Santa Rita copper
deposits in the early 1800s when a land concession for the area was granted to Don Francisco Elguea.
Through most of the 1800s, the mine was leased from Elguea and his heirs, although Apache Indians
Consolidated Copper Company and later with Nevada Consolidated Company to form Nevada Consolidates.
• In 1933 Kennecott Copper Corporation purchased Nevada Consolidates and the Santa Rita Mine.
• In the face of declining copper prices, Kennecott Copper Corporation sold a 1/3 interest in the Santa Rita mine to Mitsubishi Corporation in 1980 and the remaining 2/3 interest to Chino, a subsidiary of Phelps Dodge in 1986.
• Phelps Dodge’s Chino completed acquisition of Heisei Minerals Corporation's 1/3 general partnership interest in Chino Mines Company in December 2003. Heisei is a joint venture between Mitsubishi Materials Corporation and Mitsubishi Corporation.
• Freeport-McMorRan Copper & Gold Inc. acquired Phelps Dodge Corporation, including Chino on March 19, 2007.
2.4 Past and Current Land Uses
Mining has been the principal land use and land-based economic support for the area since open-pit
mining began in 1910. Surrounding lands have a variety of uses including residential, commercial,
industrial, grazing, timber, and recreation. Crop production has not been pursued on a large scale in
this area due to the relatively dry climate, varying topography, and poor soil conditions.
2.5 Environmental Setting
This section summarizes various aspects of the mine site, including its topography, geology, climate,
hydrology, soils and vegetation, wildlife, and material characteristics.
2.5.1 Topography
The general topography of the Chino area is depicted on Figure 2-6. Chino operations are located
near the base of the Cobre Mountains within the Pinos Altos Range of southwestern New Mexico.
The topography at Chino ranges from hilly to mountainous in the NMA to relatively flat in the SMA.
The original landscape at the site has been altered as a result of mining activities. Elevations across
the site range from less than 5,200 ft amsl along Whitewater Creek to 7,704 ft amsl approximately
1 mile south of the Kneeling Nun monolith. The topographic setting within the NMA, PCA and
Based upon the requirements of the MMD Permit, NMMA Section 69-36-11.6, and Subparts 507.A
and 507.B of the NMMA Rules (MMD, 1996), this section provides the post-mining land use
(PMLU) for the permit area as a whole and specific facilities at Chino. PMLUs are specified in
Section 3.G. of the MMD Permit.
4.1 Post-Mining Land Use Overview
The NMMA Rules define the PMLU as “a beneficial use or multiple uses which will be established
on a permit area after completion of a mining project. The PMLU may involve active management of
the land. The use shall be selected by the owner of the land and approved by the Director [of MMD].
The uses, which may be approved as PMLUs, may include agriculture, commercial or ecological uses
that would ensure compliance with Federal, State or local laws, regulations and standards and which
are feasible.” The proposed PMLUs for each facility were selected on the basis of the site
characteristics and the following guidelines:
• make the PMLU compatible with the surrounding ecosystem and land use;
• use the existing infrastructure and land resources to the extent possible; and
• maintain economic viability for Chino and the surrounding community.
The following PMLUs were selected for Chino:
• A wildlife habitat PMLU is designated for the tailing impoundments, stockpiles and other reclaimed areas.
• An industrial PMLU is designated for the transition of shops and non-process buildings and ancillary facilities from mining to an industrial/commercial complex.
The Santa Rita Open Pit and portions of the NMA have been granted a waiver from the requirements
of achieving a PMLU or self-sustaining ecosystem pursuant to NMMA Rules (19 NMAC 10, Subpart
5.507.B and Section 69-36-11.B.3 of the NMMA. The waiver area is addressed in DP-1340 (NMED,
2003). Figure 4-1 identifies the locations and extents of the proposed PMLU and the pit waiver area
designation for the permit area. The configuration of the mine upon closing will define the final
extent of the PMLU designations and will be adjusted with the 5-year NMED DP renewals.
for the primary species. The seed mix was designed for application prior to the summer rains.
However, it has proved successful under fall seeding conditions.
Table 4-3 lists some of the major attributes of the vegetation selected for use at Chino. The selected
vegetation will provide: erosion control; promote soil development; and provide forage, seeds, and
cover for small mammals and birds. The seed mix includes a number of valuable, nutritious forage
and browse species that could be used by wildlife.
4.3 Industrial Post-mining Land Use
The industrial PMLU designation of buildings and facilities are summarized in Table 4-4. Those
facilities not designated as the industrial PMLU will be removed or demolished. Demolition,
removal, and/or burial will be accomplished by meeting requirements of the following conditions
specified in MMD (2003):
• Where footings, slabs, walls, pavement, manholes, vaults, stormwater controls, and other foundations are not included in the industrial PMLU, abandoned in place over non-acid-generating material, and not demolished, they will be covered with suitable cover material.
• Covered footings, slabs, walls, pavement, manholes, vaults, stormwater controls and other foundations not included in the industrial PMLU will be revegetated.
• Structures to be covered due to regrading of piles will be demolished and removed.
• All debris will be removed from reaches of Santa Rita and Whitewater Creeks adjacent to or within industrial PMLU areas upon implementation of the closeout plan.
• Chino will demolish and remove the following structures associated with the tailing impoundments: tailing termination tower, tailing area maintenance facility, tailing slurry cyclones, and cranes.
The industrial PMLU will continue the existing type of use; however, the specific industry will
change. The three areas proposed for industrial PMLU have the infrastructure necessary to support
future industrial uses such as electroplating or sand and gravel supply. The buildings are well
maintained and most of the areas have significant shop facilities and warehouse storage capacity. The
Maintenance Facilities Area is accessible by roads and the Ivanhoe Concentrator Area has railroad
access. Electrical power is available in each area, including possible backup power from the existing
5.0 CONDITIONAL STUDIES AND ONGOING RECLAMATION PROJECTS
Additional studies were specified in both the MMD permit (MMD, 2003) and in Supplemental
Discharge Permit for Closure DP-1340 (NMED, 2003) to establish the CCP. In several of the cases,
the required work plans for the additional studies in the two permits have been coordinated and
integrated into single documents. In some instances, the studies have also been integrated to meet the
requirements of the permits and support development of the CCP. The following sections provide an
update relative to these studies. A brief description and the status of the conditional studies are
included in the following sections along with summaries of the results as applicable.
5.1 Revision 01-1 to Permit GR009RE, Section 8
The MMD permit requires that several conditional studies be addressed. A brief description and
summary of their status follows:
Condition Description Status D. Tailing Ponds Lake One closeout procedures finalized based on DP-1340 conditions. In Progress D.4b. and E.4b. Wildlife surveys for tailing impoundments and stockpiles. Completed
Cover Test Plot Program work plan and implementation schedule. In Progress Slope stability study work plan and implementation schedule.
In Progress
Affected areas study work plan and implementation schedule were completed to identify areas affected by Chino mining operations in order to determine whether these areas require reclamation. The study provided a review and evaluation of relevant environmental investigations. The study provided a summary of data gaps, which were summarized by affected area and operational DP at the mine site. These gaps are being addressed under the various discharge permits, the AOC investigations and the Stage 1 Abatement process.
Completed
Areas being considered for sludge disposal have been identified and estimates of sludge volumes were presented in February 2004. This information will be updated pending results of the ongoing water treatment feasibility study.
Completed
L. Additional Studies:
Borrow materials investigation work plan and report. In Progress 5.2 Supplemental Discharge Permit for Closure DP-1340
Supplemental Discharge Permit for Closure DP-1340 includes supplemental studies as part of
Conditions 80 though 93. Several of these conditions required work plans and studies as part of the
terms and conditions of the permit. The following is a summary of the status of these efforts. As
applicable, the results of the conditional studies are summarized as follows:
Supplemental Slope Stability Study - Perform a supplemental stability study of the waste rock piles and leach ore stockpiles to evaluate their long-term stability after mine closure.
Due Date: Extension Requested
81
Comprehensive Cover Performance Evaluation - Perform a comprehensive cover performance evaluation to evaluate the type and thickness of the proposed cover materials and to further characterize the physical and hydraulic properties of the proposed cover materials for the tailing ponds, waste rock piles, and leach ore stockpiles.
Due Date: Extension Requested Annual Reports Thereafter
82
Cover, Erosion, and Revegetation Test Plot Study - Perform a cover, erosion, and revegetation test plot study to evaluate net infiltration through the store and release cover with differing cover thicknesses, feasibility of construction and construction techniques required during cover placement, erosion rates of covered and uncovered slopes, vegetation success, and upward migration of acid from underlying materials.
Due Date: Annual Reports Start in 2005 Annually Thereafter Until 2011
83 Hydrologic Study - Perform a hydrologic study to evaluate the hydrologic conditions beneath the tailing ponds, waste rock piles, leach ore stockpiles, including the collection of water level and water quality data. The results of this study may be used to support the development of abatement plans at the mine.
Completed
84 Mass Loading Study: Supplemental Leach Ore Stockpile and Waste Rock Stockpile Mass Loading Study - Perform a supplemental leach ore stockpile and waste rock stockpile mass loading study.
Due Date: Extension Requested
85
Sludge Handling Plan - Develop a detailed sludge handling plan and cost estimate to address the locations and design of sludge management areas, volumes and tonnages of sludge generated as part of the water treatment processes, an operational plan, compliance with applicable waste management regulations, and long-term stabilization. Evaluate existing data and develop estimate of sludge generation; develop list of potential sludge deposit areas; Develop conceptual sludge management report.
Pending Water Treatment Feasibility Study Results Annual Progress Reports
86 Water Treatment System Sustainability Study - Preparation of report identifying water sources and water rights, assessing sustainability of water sources, analysis of potential impacts on groundwater, identification of discharge points, and description of proposed beneficial use of discharged water. Provide a schedule for completion of each of the components of this study. Provide annual progress reports on the status of the component studies.
Annual Progress Reports and Final Report Completed
87 Alternative Water Treatment System Design - This condition is contingent on C. 86 (Water Treatment System Sustainability Study) not complying with C.40 (treat all contaminated water to WQCC criteria) and C.41 (Pump and Treat Contaminated Water from the Open Pit).
Condition Description Status 88 Process Solution Elimination Study - Evaluate alternatives and
identify environmentally sound and cost-effective methods to treat or eliminate the process solutions following Cessation of Operation or closure.
Completed
89 Slag Characterization Study and Slag Pile Closure Plan - Characterization study to determine potential effects on groundwater and closure plan for slag pile.
Completed
90 Lake One Area Characterization Study - Characterization report addressing the sediments and groundwater in the Lake One Area and analysis of closure alternatives and development of closure plan.
Due Date: Extension Requested
91 Reservoir and Impoundment Study - Determine which of the existing reservoirs, lakes, sumps, or any other pond will be needed during closure and post-closure for water management.
Completed
92 Supplemental Northern Area Groundwater Flow Model - Model and characterize the impacts and potential future impacts to ground water in the Northern Area as a result of Cessation of Operations.
Completed
93 Feasibility Study - A study designed to evaluate closure alternatives for each facility to be closed.
Completed
5.2.1 Condition 80 – Supplemental Slope Stability Study
To fulfill the requirements of Condition 80, an additional study was performed to supplement
previous analyses of the stability of the stockpiles at Chino (Golder, 2007b). In accordance with
Condition 80, Chino is required to “…evaluate the long-term physical stability of Waste Rock Piles
and Leach Ore Stockpiles after closure.” The study evaluated and quantified changes in the
engineering parameters resulting from weathering processes in the piles and was therefore
coordinated with the Condition 84, study of the geochemical processes in the stockpiles. Additional
conditions of this study included the evaluation of all stockpiles, regardless as to whether they are
inside or outside the OPCZ and the identification and evaluation of the extent of landslides, talus and
rubble areas in the vicinity of the stockpiles and their possible effects on stockpile stability.
The factors of safety for stockpiles in a regraded configuration are high and these would not be
expected to experience instability in the long term. Reasonable predictions of stockpile material
strength reductions due to long term weathering of the stockpile material do not indicate that the
To fulfill of the requirements of Condition 83, Chino is required to “Perform a hydrologic study to
evaluate the hydrologic conditions beneath the tailing impoundments, waste rock piles, leach ore
stockpiles, including the collection of water level and water quality data. The results of this study
may be used to support the development of abatement plans at the mine.” The major conclusions
drawn from the Condition 83 hydrologic study include:
North Mine Area
• the estimated of groundwater inflows during operations and following closure has been revised;.
• the location of the surface expression of the OPCZ under current operational conditions has been further refined;
• outside of the OPCZ, the flow paths of impacted groundwater recharged beneath stockpiles and other disturbed areas has been further refined; and
• updated estimates of the quantities of groundwater reporting to the pit, discharging as surface water at the toes of the stockpiles, and leaving the footprint (horizontal projection) areas of the stockpiles outside of the OPCZ .
Middle White Water Creek Area
• the groundwater system of the MWWCA is largely confined to the alluvial channel associated with the Whitewater Creek drainage;
• groundwater in the alluvium has been impacted by historical releases of poor quality surface water; and
• groundwater of the MWWCA currently flows down gradient into the Lake One and SMA and is eventually intercepted by the Tailing Pond 7 interceptor well system.
South Mine Area
• The SMA groundwater system is largely confined to the Gila Conglomerate; and
• Pond 7 Interceptor Well System is containing impacted groundwater associated with current and historical tailing pond operations, and groundwater that was historically impacted by releases of poor quality surface water down Whitewater Creek.
There are 23 named reservoirs/dams in the NMA covering approximately 120 acres. The reservoir
characteristics are summarized in Table 6-3 (M3, 2004a). The plan is to close and reclaim Reservoirs
2, 6 and 9. Reservoirs 3A and 7 will be cleaned out as necessary and retained for stormwater control
purposes. Existing piping may also be used to support water management and the water treatment
infrastructure. The remaining reservoirs/dams will be used to intercept surface water, seeps, or
perched water and direct flows to permanent impoundment or treatment facilities as follows (M3,
2004a):
• seepage handling: Reservoirs 10, 11, 12, 13, 14, 14-1, 14-2, and 14-3 are required to collect long-term seepage from the stockpile (these reservoirs presently collect stormwater runoff and/or seepage from the West Stockpile to prevent those flows from entering Hanover Creek);
• surface runoff: Reservoirs 3A, 4A, 5, 7, 15, 17, and 20 will be designated for post-closure stormwater control;
• water treatment and influent storage: Reservoirs 4A and 20 will provide storage of influent to the NMA water treatment plant; and
• process solution handling: Reservoir 8 will be utilized during the process solution elimination period that will occur immediately following cessation of leaching operations (Leach solutions will be collected from the Lampbright Stockpiles and pumped to the proposed evaporation system located on the top surface of one of the leach stockpiles).
In the SMA, Axiflo Lake is being closed as part of the reclamation of the older tailing impoundments
(Golder-URS, 2007). Pond 4 is permitted for emergency or upset conditions although it is anticipated
the eastern sector of the pond will be closed and reclaimed with the other older tailing impoundments.
Pond 7 and the southern ends of Ponds 6E and 6W are being used for tailing management operations
and will be reclaimed at the end of Pond 7 operations.
6.1.5 Other Disturbed Areas
Slag Pile – Hurley Operations Area
The slag pile will be graded to 2.5(H):1(V) on the outslopes and no less than 0.5 percent on the top
surface, covered with suitable materials, and seeded and mulched to establish vegetation.
• installation, operation, and maintenance of existing toe control systems, including the process water interceptor system along the north and east sides of the Main Lampbright Stockpile and the groundwater extraction system;
• diversion of excess surface water runoff from undisturbed terrain north of the Main Lampbright Stockpile along the North Diversion Channel into Tributary 2; and
• diversion of stormwater runoff south of the Lampbright Stockpiles into a number of impoundments in Tributary 1 to reduce peak flows into Reservoir 8.
Planned Closure/Closeout Activities
The closure/closeout activities planned for the DP-376 area consist of:
• removing remaining debris and solid waste and dispose of it in an approved manner;
• flushing the raffinate and PLS pipelines with water to remove residual solutions;
• grading the stockpile top surfaces as necessary to support placement of the cover and provide drainage;
• grading stockpile outslopes to approximately 2.5H:1V;
• cover the top surfaces with 24 inches of cover material;
• constructing hydraulic structures as necessary to direct excess water off of the covered top surfaces;
• constructing run-on controls on the west side of the Southwest Lampbright Stockpile and the disturbed area associated with the Lampbright Stockpile;
• constructing terraced benches at interbench slopes of 2.5H:1V with reach lengths of approximately 175 feet.
• constructing benches approximately 15 feet wide, sloped 0.5 percent toward the interior portion of the outslope face immediately above it, with a longitudinal slope of no greater than 5 percent;
• constructing drainage systems to control erosion of the stockpile outslopes and segregate non-affected and most potentially affected runoff;
• providing facilities to discharge non-affected stockpile runoff;
• providing hydraulic structures to direct affected water to a site-wide water treatment facility;
• demolishing the old Raffinate Pond, PLS Feed Pond, Wash Rack, and temporary storage structures;
• flushing the PLS, raffinate, and other pipelines with water to remove accumulated sediment;
• removing all debris and visually affected soil at or near the surface;
• disposing of debris or affected soil in an approved manner;
• collecting confirmation samples from areas where soils were removed;
• covering unpaved areas with nominally 24 inches of suitable cover material; and
• seeding covered and disturbed areas to re-establish vegetation.
7.1.3 DP-459: Main Pit, North In-Pit Leach System, and Northeast, North, Northwest, and Lee Hill Waste Rock Piles and Stockpiles and Reservoir 5
Mining Facilities to be Closed
Mining facilities to be closed at the DP-459 area include (Figure 7-3):
• the North Pit Stockpile and associated disturbed areas;
• Northwest, Lee Hill, and Northeast Stockpiles;
• the Santa Rita Open Pit (Main Pit); and
• pipelines and related facilities for raffinate, PLS, and stormwater/groundwater, except those that may be used in the post-closure water management system.
The footprint areas (horizontal projections) of the North In-Pit Leach, Northwest, North and
Northeast Stockpiles are included in Table 6-2. The footprint (horizontal projection) of the Santa Rita
Open Pit is also shown in Table 6-2. The few ancillary structures in the DP-459 area will be removed
and salvaged upon closure. All of these existing stockpiles are within the OPCZ. Chino has received
a waiver from the MMD for these facilities relative to achieving a PMLU or self-sustaining
ecosystem.
Existing Closure Components
Closure activities and related engineering controls implemented to date at the DP-459 area include:
• installed, operated, and maintained toe control systems for the stockpiles, including the process water collection system along the south side of the north leach portion of the North Stockpile and the pit dewatering system; and
• surface water runoff diversions in upper Santa Rita Creek to Reservoir 5.
Planned Closure/Closeout Activities
The closure/closeout activities planned for the DP-459 area consist of the following:
For the stockpiles:
• removing remaining debris or solid waste and dispose of it in an approved manner;
• flushing the raffinate and PLS pipelines with water to remove residual solutions;
• grading the stockpile top surfaces as necessary to support placement of the cover and provide appropriate drainage;
• covering stockpile top surfaces with 24 inches of cover material;
• constructing hydraulic structures where needed to direct runoff from the covered top surfaces;
• providing hydraulic structures to direct impacted water to the NMA water treatment facility; and
• providing facilities to discharge non-impacted stockpile runoff.
For the Santa Rita Open Pit:
• constructing a 10-ft wide berm five feet high to control run-on;
• constructing a 6-ft high continuous chain-link security fence around the pit crest perimeter to control access;
• providing and/or maintain hydraulic systems on the pit floor to capture and transfer impacted water to the site-wide water treatment facility; and
• providing interceptor wells to control groundwater.
For miscellaneous pipelines not incorporated in the post-closure water management system:
• flushing the raffinate and PLS pipelines with water;
• salvaging or burying pipelines with 24 inches of suitable cover material; and
• seed covered areas to re-establish vegetation.
7.1.4 DP-493: Reservoir 3A
Mining Facilities to be Closed
Reservoir 3A will be used for stormwater collection as part of the post-closure surface water control
system (Figure 7-3). Mining facilities to be closed at the DP-493 area include miscellaneous
pipelines for raffinate, except those that may be used in the post-closure water management system or
for stormwater control.
Existing Closure Components
Engineering controls implemented to date in the DP-493 area that may have a post-closure purpose
include periodic pumping of Well 3A-5 to remove impacted groundwater.
Planned Closure/Closeout Activities
The closure/closeout activities planned for the DP-493 area consist of:
• flushing the pipelines with water to remove residual solutions;
• salvaging or burying redundant pipelines with 24 inches of cover;
• pumping the remaining water in Reservoir 3A to an approved discharge point or allow the water to evaporate;
• removing and disposing of impacted sediments, and covering the reservoir area and associated disturbed areas with 24 inches of suitable cover material;
• seeding covered and disturbed areas to re-establish vegetation; and
• using the reservoir for stormwater control during the post-closure period.
7.1.5 DP-526: Whitewater Leach System (Stockpiles and Facilities Area)
Mining Facilities to be Closed
Mining facilities to be closed at the DP-526 area include (Figure 7-4):
• the West and South Stockpiles and associated disturbed areas;
• Reservoir 2 and associated disturbed areas; and
• pipelines and related facilities used for raffinate, PLS, and stormwater, except those that may be used in the post-closure water management system.
Reservoirs 4A and 17 and the impoundments, catchment structures, and sumps at the toes of the West
and South Stockpiles will be maintained as part of the post-closure water management system.
Existing Closure Components
Closure activities and related engineering controls implemented to date in the DP-526 area include:
• stockpile top surface perimeter berms;
• installed, operated, and maintained toe control systems, including the sediment, stormwater, seepage, and groundwater interceptor systems along the west side of the West and South Stockpiles,
• PLS collection systems and sand traps;
• Diversions of stormwater runoff into Reservoir 4A; and
• water management of utilizing Reservoir 17 and alluvial groundwater interceptor systems (Dam 16) along upper Whitewater Creek
• stockpiling suitable cover materials in the Upper South Stockpile.
Planned Closure/Closeout Activities
The closure/closeout activities planned for the entire West and South Stockpiles, except the Upper
South Stockpile, consist of:
• removing remaining debris and solid waste and dispose of it in an approved manner;
• flushing the raffinate and PLS pipelines with water to remove residual solutions;
• grading stockpile outslopes (those located outside the pit capture zone) down to an average interbench slope of 2.5H:1V;
• extending the toe interceptor system to outside the regraded West Stockpile toe limits along Hanover Creek;
• grading the stockpile top surfaces to 0.5 percent to support placement of the cover and provide drainage;
• covering top surfaces and regraded outslopes located outside the OPCZ (including the haul roads, unused pipelines, and berms) with 24 inches of suitable cover material;.
• and covering the outslopes with 24 inches of suitable cover material;
• constructing hydraulic structures as necessary to direct excess water off of the covered top surfaces;
• providing drainage systems to control erosion of the stockpile outslopes and maximizes the segregation of non-impacted and potentially impacted runoff;
• providing additional channels, sumps, wells, pumps, and pipelines to direct impacted water to a site-wide water treatment facility;
• providing facilities to discharge non-impacted stockpile runoff;
• grading the Upper South Stockpile, which will be partly consumed for use as cover material, to a slope of 2.5H:1V during material removal; and
• seeding covered and disturbed areas to re-establish vegetation.
For Reservoir 2 and associated disturbed areas:
• draining and grading Reservoir 2 to provide drainage;
• removing or mitigating any impacted sediments and cover with 24 inches of cover material; and
• seeding covered and disturbed areas to re-establish vegetation.
Reservoir 4A will be used for stormwater and sediment control and storage of solutions collected
from the Whitewater Stockpile toe control and groundwater interceptor systems and Reservoir 17 will
be maintained for emergency stormwater control (M3, 2004a).
The planned reclamation incorporates the following approach:
• relocating existing utilities that are not located in utility corridors to utility corridors compatible with both the closure and post-closure objectives;
• removing remaining debris and solid waste, and dispose of it in an approved manner;
• flushing pipelines, active at the time of closure, that do not have a post-closure purpose with water to remove accumulated sediment in accordance with Condition 29 of DP-1340;
• grading outslopes to remove existing erosion channels;
• covering the tailing impoundment outslopes and top surfaces, including the slurry pipelines, with 24 inches of suitable cover material;
• placement of a temporary dust cover (approximately 4 to 6 inches thick) on the south end of Ponds 6E and 6W;
• grading the exterior and interior slopes of all the tailing impoundments to slopes no steeper than 3H:1V (slopes that already meet this requirement will not be graded);
• grading top surfaces to between 0.5 and 5 percent to convey stormwater to hydraulic structures;
• constructing hydraulic structures to direct runoff from the tailing impoundment surfaces;
• applying armoring and construct channels on the tailing impoundment outslopes to reduce erosion and control runoff; and
• seeding covered and disturbed areas to re-establish vegetation.
Lake One Area
• grading the surface to support placement of the final cover and provide drainage;
• covering the site with 24 inches of suitable cover material; and
• seeding covered and disturbed areas to re-establish vegetation.
Hurley Operation Area
• cover the site with a maximum of 36 inches of suitable soil,
• creating side interbench slopes at an angle of 3H:1V; and
• constructing drainage channels to control erosion and manage runoff.
7.1.8 DP-484: Tailing Pond 7 Area
Mining Facilities to be Closed
Mining facilities to be closed at the DP-484 area include (Figure 7-7):
• Tailing Pond 7;
• the tailing termination tower;
• pipelines for tailing slurry and groundwater; and
• auxiliary structures and equipment (buildings and crane-mounted cyclones).
Tailing Pond 7 has a footprint (horizontal projection) of 1,560 acres. The auxiliary structures in the
DP-484 area will be removed and salvaged upon closure.
Existing Closure Components
• operation of the Tailing Pond 7 Interceptor Well System;
• operation of the Tailing Pond 7 seepage collection sump;
• Whitewater Creek diversion; and
• dust cover capping program for the Tailing Pond 7 outslopes.
Planned Closure/Closeout Activities
• removing remaining debris and solid waste, and disposal in an approved manner;
• flushing pipelines, active at the time of closure, that do not have a post-closure purpose with water to remove accumulated sediment in accordance with Condition 29 of DP-1340;
• flushing pipelines, active at the time of closure, that do not have a post-closure purpose with water to remove accumulated sediment in accordance with Condition 29 of DP-1340;
• grading the tailing surfaces as necessary to support placement of the cover and provide appropriate drainage;
• stormwater runoff diversions from paved areas to existing sediment/stormwater control impoundments.
Planned Closure/Closeout Activities
• demolishing structures and facilities including the Wash Shop rack and concrete pad, Maintenance Shop, storage lean-to, storage shed, Primary Crusher, Wash Shop wastewater sump, and Shop Fast fuel hoses and pumps;
• removing all debris and visually affected soil at or near the surface in unpaved areas;
• disposing of debris or affected soil in an approved manner;
• collecting confirmation samples from areas where soils were removed;
• reclaiming the large truck wash rack area with clean soil;
• covering unpaved areas with 24 inches of suitable cover material; and
• seeding covered and disturbed areas to re-establish vegetation.
7.2.2 Groundhog Mine Stockpile Area
Reclamation and remediation of the Groundhog Mine Stockpile Area is ongoing and being addressed
under the AOC as well as the NMMA. An interim remedial action (IRA) plan was submitted to
NMED on April 28, 2003 and approved by NMED November 18, 2003 with concurrence from
MMD. The IRA included all stockpiles associated with the Groundhog Mine, except for Groundhog
No. 5 Stockpile (Section 7.2.3). The IRA included removal of stockpile materials, soil cover and
revegetation on areas excavated to bedrock, removal of building foundation materials adjacent to the
stockpiles, closure of mine shafts, diversion of stormwater run-on, and containment of impacted
stormwater. Figure 7-9 shows the closure/close-out activities within the Groundhog Mine Stockpile
Area.
Completed Closure Components:
• constructed stormwater diversion channels;.
• drainfield installed at the headwall to contain shallow seepage from the stockpiles;
• seepage and runoff collected at the headwall are pumped to Dam 17;
• stockpile material and foundations removed; and
• impacted stormwater pumped from a containment pond and a headwall sump to Dam 17.
Planned Closure/Closeout Activities:
• seeding covered and disturbed areas to re-establish vegetation;
• evaluating, plugging, and abandoning the mine openings;
• constructing additional surface water channels to divert unimpacted stormwater run-on, around and over reclaimed areas; and
• containing surface water by the headwall structure and pump to Dam 17 until vegetation has stablized and runoff meets requirements of the NPDES Permit.
7.2.3 Groundhog No. 5 Stockpile Reclamation
The Addendum to Proposal for Financial Assurance, Section 4 dated September 23, 2003 and
Condition 8.P of the MMD Permit identifies an accelerated reclamation schedule for the Groundhog
No. 5 Stockpile. The Groundhog No. 5 site has been investigated (Golder, 2001, 2005b and 2007e)
and is being reclaimed consistent with a long-term strategy for closure/closeout of the Chino and the
standards prescribed in the AOC agreement and the NMMA Rules. Figure 7-9 shows the
closure/close-out activities within the Groundhog No. 5 Stockpile.
An Interim Remedial Action (IRA) plan (Engineers Inc., 2005) was prepared pursuant to the
requirements for an IRA under the AOC to meet the standards for existing mines under the NMMA
Rules. The IRA consisted of regrading the stockpile, removing structures, covering the mine shaft
8.0 CAPITAL AND OPERATION AND MAINTENANCE COST ESTIMATES
This section provides a brief description of the capital cost estimate portion of the financial assurance.
Cost estimates are budgetary and for the purpose of determining the value of the financial assurance
performance bond.
8.1 Capital Cost Estimates
The cost estimate has been prepared in accordance with standard engineering practice and is
supported with data from various references (Appendices C and D). The capital costs for closure are
summarized as follows:
CAPITAL COST SUMMARY
Item Amount Total Earthwork Tailing Impoundments $50,261,000
Stockpiles $114,959,000 Santa Rita Open Pit $1,691,000 Reservoirs $1,153,000 Other Disturbed Areas $6,546,000 Abandon exploration holes and perimeter fencing $1,700,000
An update to the reclamation schedule is required pursuant to DP-1340 and MMD Permit. Table 9-1
presents the anticipated schedule for implementation of closure activities based on best available
information. The proposed schedule summarizes Chino’s understanding of the existing near-term
commitments and longer-term projections. More specifically, the schedule is based on the following
considerations
• ongoing projects and previous schedule commitments;
• practical phasing of the reclamation projects to account for water management, water treatment and the anticipated labor, equipment and other resources that would be necessary to complete these projects based on current conditions;
• sequential closure of facilities in a phased cost efficient manner (i.e., tailing impoundment closures as milling operations cease followed by waste rock pile closures as mining operations cease and finally closure of the leaching facilities following process water elimination); and
• the total annual acreages that would be reclaimed over this period.
Ultimately, Chino reserves the right to modify the proposed reclamation schedule to respond to
unforeseen changes in mine operations and advancements in reclamation practices.
For clarity, the financial assurance cost estimate and the proposed reclamation schedule are explicitly
linked. Chino expects that the planned closure of the facilities represented by the proposed schedule
will be conducted in a more cost efficient manner than that reflected in the financial assurance cost
estimate, which is predicated on the unlikely condition of forfeiture. As indicated earlier,
implementation of the mine for closure concepts is expected to result in more efficient reclamation
than might be considered in a forfeiture scenario.
Golder has compiled this Closure/Closeout Plan (CCP) to present Chino’s 5-year update of the CCP
to the New Mexico Environment Department (NMED) and the Mining and Minerals Division
(MMD) of the New Mexico Energy, Minerals, and Natural Resources Department. The Chino CCP
was updated to fulfill the applicable requirements of the following two permits:
• Supplemental Discharge Plan DP-1340 (DP-1340), issued by the NMED on February 24, 2003 (NMED, 2003); and
• Revision 01-1 to Permit GR009RE (MMD Permit), issued by the MMD of the New Mexico Energy, Minerals and Natural Resources Department on December 18, 2003 (MMD, 2003).
Please contact the undersigned with any questions or comments on the information contained in this
report.
Respectfully submitted, GOLDER ASSOCIATES INC. Robert Newcomer Brent R. Bronson, P.E. Project Manager Project Director Associate Principal
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Golder, 2004a. Lake One Area Closure Plan, Characterization Study and Closure Alternatives Analysis. February 19, 2004.
Golder, 2006b. Report on North Mine Area Groundwater Flow Model: Chino Mine, New Mexico. January 13, 2005
Golder, 2006c. Supplemental Materials Characterization Upper South Stockpile DP-1340 Condition 81. April 27, 2006.
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Grossman, D.H., D. Faber-Langendoen, A.W. Weakley, M. Anderson, P. Bourgeron, R. Crawford, K. Goodin, S. Landaal, K. Metzler, K.D. Patterson, M. Pyne, M. Reid, and L. Sneddon. 1998. International classification of ecological communities: Terrestrial vegetation of the United States. Volume I. The National Vegetation Classification System: Development, status, and applications. The Nature Conservancy, Arlington, Virginia.
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MMD, 2003. Permit revision 01-1 to Permit No. GR009RE Chino Mine Existing Mining Operation. Issued December 18, 2003.
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