SC leaders pleased as gold mine wins approval

A proposed industrial-scale gold mine that prompted three years of environmental studies received final approval this week from South Carolina regulators amid predictions by state leaders of economic prosperity for the Palmetto State.

But the state Sierra Club, the lone remaining conservation group to question the mine, criticized the approval and said it is considering an appeal.

The S.C. Department of Health and Environmental Control quietly issued a mining permit Wednesday that allows Romarco Minerals Inc. to begin digging the largest open-pit gold mine ever developed in South Carolina and what’s purported to be the largest in the eastern United States. DHEC’s approval is the last environmental permit needed to begin the project, agency spokesman Mark Plowden said.

On Thursday, Gov. Nikki Haley issued a glowing news release praising the Canadian corporation’s decision to establish the gold mine near Kershaw, a jobs-hungry community about 60 miles north of Columbia.

Romarco, headquartered in Toronto, plans to dramatically expand the historic Haile Gold Mine with eight mining pits, one of which would be 840 feet deep. The more than $300 million project is expected to fill 120 acres of wetlands and miles of streams near the town of Kershaw. The site would cover about 2,500 acres in Lancaster County.

Romarco has located 4 million ounces of gold in the area and is expected to begin construction work by January, although the permit allows work as early as Nov. 21. The mine would create hundreds of jobs, state leaders said.

“It’s no secret that South Carolina is blessed with natural resources and Romarco Minerals’ decision to expand their operations at the old Haile Gold Mine is an example of the positive impact those resources can have on our economy,” Haley said in the release. “We congratulate them on their decision to invest over $350 million and create 270 jobs in Lancaster County, and look forward to seeing them succeed in the Palmetto State.”

The governor’s office release also included praise from S.C. Secretary of Commerce Bobby Hitt, Romarco Minerals executive Diane Garrett and officials from Lancaster County.

Larry McCullough, chairman of Lancaster County Council, said miners “will be good stewards of the environment” and will operate a state-of-the-art gold digging operation.

“The job creation, investment, and payroll from this company will spur additional economic growth in the town and county, and we are excited about the opportunities to come with this project,” McCullough said.

DHEC didn’t say what persuaded the agency to approve the mining permit.

The permit includes restrictions intended to protect the environment from a cyanide-contaminated tailings pond and from sulfide-rich rock with the potential to release acid into groundwater and streams.

Romarco also must set aside $60 million to repair the site once mining operations end in the next 14 years. DHEC had initially sought an $80 million bond, while Romarco had sought to pay $43 million. Romarco’s financial package will consist of $55 million in surety bonds and a $5 million interest-bearing trust, according to the permit. The mining permit would become effective if nobody appeals by Nov. 20.

Bob Guild, a Sierra Club member and Columbia environmental lawyer, wasn’t aware the permit had been issued Wednesday until informed by The State newspaper. DHEC did not announce its decision to issue the mining permit. An agency spokesman confirmed the permit had been issued when asked Thursday by The State.

“Now that we know the permit is out, we will be evaluating our position regarding appealing the DHEC decision,” said Guild, who questioned whether the $60 million bond was adequate to pay for cleaning up the site.

South Carolina has had a history of requiring inadequate bonds for an array of sites, including gold mines and a hazardous waste dump at Lake Marion. Federal taxpayers already have spent $27.4 million to clean up two abandoned, open-pit gold mines. Several management accounts for the toxic waste dump, whose owner declared bankruptcy and left South Carolina, are running out of money to maintain the site and protect the lake, DHEC officials acknowledge.

“Given DHEC’s track record of failure to require adequate bonds and financial assurance ... we should be requiring cash on the barrel head and in an amount adequate to assure a cleanup and perpetual monitoring,” Guild said, noting that a consultant to environmentalists had recommended a $100 million bond for Romarco.

DHEC’s Plowden said the bond his agency required is significant.

Last month, the U.S. Army Corps of Engineers approved a permit to fill 120 acres of wetlands. The decision to allow the wetlands filling, which is extensive even for South Carolina, left only the mining permit to be decided by DHEC.

While the gold mine has prompted a detailed environmental impact study and numerous public meetings since 2011, Romarco actually has been looking at the Kershaw area to dig for gold since 2007. Kershaw residents have largely supported the mine expansion plan, saying they still are trying to recover from the loss of textile jobs more than 20 years ago.

The new Haile Gold Mine will encompass about 2,500 acres, but Romarco has acquired some 12,000 acres in the area. The company’s venture into gold mining in South Carolina has been watched by other mining companies interested in the region. The Carolinas have a slate belt that has been mined at a relatively small scale since the early 1800s. The area still has substantial gold deposits, experts say.

Romarco chief executive Diane Garrett said the mine will produce a $68 million economic benefit annually over its 13.5-year life.

“We are delighted to be a part of the community of Kershaw and Lancaster County,” Garrett said in the governor’s news release. “Since arriving in this area seven years ago, we have demonstrated our commitment to hire locally and buy locally.”

In addition to the community support in Kershaw, most environmental groups and the S.C. Department of Natural Resources have dropped opposition to the mine because Romarco agreed to protect nearly 5,000 acres, mostly in Richland County, to offset wetlands losses in Lancaster County. The company would open Cook’s Mountain, a unique land formation on the Wateree River, to the public and protect nearby Goodwill Plantation from development, according to the wetlands offset plan.

This story was originally published November 6, 2014 at 9:59 PM with the headline "SC leaders pleased as gold mine wins approval."