The discovery last month of one male ocelot near the proposed Rosemont copper mine site and new information on the impacts to other endangered species has triggered a new round of formal endangered species act consultations between federal regulatory agencies.
The endangered species review, combined with other recent regulatory developments concerning impacts to water resources, may deliver the fatal blow to Augusta Resource Corporation’s effort to develop the open-pit mine in the Santa Rita Mountains southeast of Tucson.
The U.S. Fish & Wildlife Service (FWS) formally notified the U.S. Forest Service on May 15 that additional discussions over the Rosemont mine’s potential biological impact on the ocelot and seven other endangered species is required. It is unclear how long it will take for these consultations to be completed.
The reopening of endangered species consultation raises questions of whether regulatory hurdles are now too significant even for Toronto-based Hudbay Minerals Inc., which is in the midst of a hostile take over bid for Augusta. Hudbay, which already owns 16 percent of Augusta’s 145 million shares of common stock and has far more financial strength than Augusta, has an all-cash offer for Augusta that expires May 27.
Augusta appears to be running out of financial options and now may be forced to accept Hudbay’s buyout offer that Augusta has strongly resisted since February, unless Hudbay decides to withdraw its offer.
