Mine plans a boost for Lovelock-area jobs

Plans by Coeur d'Alene Mines Corp. to expand its Rochester silver and gold mine and possibly add another 200 jobs comes as a blessing for Pershing County.

Unemployment in August was 10.3 percent for Pershing County's labor force of 2,720 workers, sixth smallest of the state's 16 counties. Mining is the county's largest employer.

Kathy Johnson, economic development director for the Lovelock/Greater Pershing Partnership, says layoffs at the mine hit hard in the county, and the proposed expansion could boost employment and residency in Pershing County. Currently the mine employs about 30.

"We are very happy to see that things have been worked out between the mine and the BLM," Johnson says. "It brings jobs back into the county, and that is always a positive.

"A lot of people have had to leave when Coeur scaled back few years ago, so people are glad to hear it is going to be part of our community again," she adds. "There was a good relationship there before, and I'm sure there will be again."

The planned expansion at the Rochester Mine is expected to add an average of 2.9 million ounces of incremental annual silver production and 30,000 ounces of further gold production through 2017. Coeur would have to construct a new heap leach pad in 2010 that would cost approximately $28 million.

Tony Ebersole, director of corporate communications for Coeur d'Alene Mines Corp., says operations at the Rochester Mine have slowed to the residual heap leach phase leaching gold and silver out from previously mined ore, a process expected to last through 2014. The planned expansion would add six years to the mine and could take place beginning in 2011.

"An environmental assessment and feasibility study need to be done prior to resumption of operation, but the silver and gold markets are very strong, and it is a good time in terms of the marketplace," Ebersole says.

Gov. Jim Gibbons last week announced that the Bureau of Land Management will try to help Coeur expedite necessary environmental studies to spur the expansion of the mine near Lovelock. The BLM initially asked Coeur to complete an environmental impact study of the proposed expansion before proceeding forward but now has agreed to let Coeur complete an environmental assessment of the project, which can be completed more quickly.

"It is vital to create new jobs in Nevada as quickly as possible," Gibbons says. "I am pleased the BLM and Coeur Rochester were able to come up with an agreement that will speed up the approval processes and put Nevadans back to work."

Since beginning operations in 1986, the Rochester Mine has produced more than 125 million ounces of silver and 1.4 million ounces of gold. The mine recently received awards by the Nevada Mining Association and the Mine Safety and Health Administration for safe operations.

"Rochester for a long time has been the flagship and anchor of the company, and it is nice to be able to keep it going," Ebersole says. "It is a long-life mine and the largest silver-producing mine in Nevada. It is nice to have the potential to have it extended both for the company and for the area."