Augusta again urges shareholders to reject HudBay bid claiming it is on the “cusp” of receiving final permit

Posted on April 14, 2014 by admin

Augusta Resource Corporation is continuing the mantra in its annual proxy statement released last week that the final major permit for its Rosemont copper project will be issued before July and that construction will begin later this year.

And, once again, Augusta’s Board of Directors urges shareholders to reject an unsolicited takeover offer from HudBay Minerals Inc.

Vancouver, B.C.-based Augusta continues to state in filings to Canadian and U.S. regulators that it is “confident” the U.S. Army Corps of Engineers will issue a Clean Water Act 404 permit by the end of the second quarter to its Rosemont Copper Company subsidiary, despite serious concerns the Corps raised in February about Augusta’s permit application.

Augusta’s April 7 proxy, formally known as the Management Information Circular (MIC), is the fourth consecutive regulatory filing the Company has made without disclosing a Feb. 28 Army Corps letter sent to Rosemont president Rodney Pace. Continue reading →

Posted in Clean Water Act, EIS, Investors, water | 1 Comment

Groundwater depletion caused by Rosemont mine would negatively impact more than 900 private wells

Posted on April 11, 2014 by admin

SSSR14_1014_Pages from rosemont-feis-vol-1There is no adequate mitigation plan to address the proposed Rosemont copper mine’s massive and permanent impact on groundwater supplies that provide domestic water to more than 900 privately-owned wells on the east and west side of the Santa Rita Mountains, according to written objections to the Coronado National Forest’s Final Environmental Impact Statement.

“The USFS continues to avoid the bottom line issue of what are the likely impacts of groundwater pumping by the Rosemont Copper Project on individual home owners, existing businesses, and communities,” the objections state.

The FEIS, the objections state, failed to provide a “quantitative or even a qualitative analysis of a reduction in groundwater availability nor any socioeconomic analysis of the effect of groundwater mining on existing well owners.”

The objections were prepared by a citizen’s coalition opposed to the mine and were filed with the U.S. Forest Service Regional Forester, who must respond in writing by the end of April. If the objections are not adequately addressed with substantive changes to mining plans, the issues could be used in potential litigation against the Forest Service that could block construction of mine. Continue reading →

Posted in EIS, The closer you look, the worse it gets, water | 3 Comments

Augusta ignores Army Corps concerns and continues to tell investors 404 Clean Water Act permit will be issued by June 30

Posted on April 1, 2014 by admin

Augusta Resource Corporation continued to state in regulatory disclosures filed late Monday that it expects its Rosemont Copper Company subsidiary to receive a crucial Clean Water Act permit from the U.S. Army Corps of Engineers by June 30.

The Section 404 permit is necessary before construction can commence on its Rosemont copper project. Augusta’s assurances that permitting will be complete by the end of the 2nd Quarter comes as the company is fending off a hostile take over from much larger HudBay Mineral Resources.

HudBay announced Monday it is extending its takeover deadline to May 5. HudBay already controls slightly more than 15 percent of Augusta’s stock and is seeking to purchase the remaining outstanding shares in a deal worth approximately $540 million.

Vancouver, B.C.-based Augusta has repeatedly urged shareholders to reject the HudBay offer because it expects to receive final permits clearing the way for the Rosemont project that will trigger a substantial increase in the value of the company. Augusta, while continuing to state on its website it intends to construct the Rosemont mine, is also stating it is in discussions with nine companies interested in bidding for Augusta.

Augusta, however, has not informed investors in three separate disclosure reports about a Feb. 28 Army Corps letter that raised serious concerns about Rosemont’s failure to provide a mitigation plan to compensate for damage to Waters of the United States (WUS) from its proposed open-pit copper mine that meets federal regulations. Continue reading →

Posted in Clean Water Act, Investors | 1 Comment

April 1 deadline for Rosemont to submit suitable mitigation plan required for crucial water permit

Posted on March 31, 2014 by admin

Despite two years of regular meetings and discussions between Rosemont Copper Company and the U.S. Army Corps of Engineers, Rosemont has yet to submit a mitigation plan that meets federal requirements, the Corps stated in a Feb. 28 letter to the company.

As a result, Rosemont is facing an April 1 deadline to submit a suitable mitigation plan to the Corps that is necessary before the Corps can issue a Section 404 Clean Water Act permit the company needs to construct the proposed Rosemont open-pit copper mine.

The Corps stated that Rosemont has failed to provide a plan that focuses on restoration and enhancement of watersheds to compensate for the destruction of about 70 acres of wetlands that will occur by the proposed massive open pit mine that will destroy more than 3,000 acres of Coronado National Forest (CNF).

Rosemont President & CEO Rod Pace said the company disagrees with the Corps statements about the lack of restoration lands in its proposal, according to an Arizona Daily Star March 22 story. The company declined to provide specifics in response to a question from the Star. Continue reading →

Posted in Clean Water Act, water | 1 Comment

Forest Service failed to adequately analyze Rosemont’s major impacts to Arizona Trail, OHV and other recreational uses

Posted on March 26, 2014 by admin

SSSR14_1014_Pages from rosemont-feis-vol-1The proposed Rosemont copper mine will have major negative impacts on popular recreational activities in the Santa Rita Mountains located on the Coronado National Forest (CNF), including off-highway-vehicle (OHV) use and the relocation of 13 miles of the Arizona National Scenic Trail.

Despite the anticipated recreation-related problems, the CNF did not adequately analyze the severity of the impacts or propose suitable mitigation measures to compensate for the damage, according to comprehensive written objections to the CNF’s Final Environmental Impact Statement (FEIS) for the proposed massive open pit mine.

The objections were prepared by a citizen’s coalition opposed to the mine and were filed with the U.S. Forest Service Regional Forester, who must respond in writing by the end of April.

If the objections are not adequately addressed with substantive changes to mining plans, the issues could be used in potential litigation against the Forest Service that could block construction of the mile-wide, half-mile deep open pit mine. Continue reading →

Posted in EIS, The closer you look, the worse it gets | 3 Comments