HudBay CEO: Augusta must resolve all litigation before it can access funds to build Rosemont mine

Posted on March 17, 2014 by admin

Augusta Resource Corporation cannot access  funds needed to begin construction on its massive Rosemont copper project until all litigation challenging the mine has been concluded, David Garofalo, president and CEO of HudBay Mineral Resources, stated in a March 14 press release.

For the last several years, Vancouver, B.C.-based Augusta has stated in financial disclosure documents filed with securities regulators that all it needs to obtain $336 million in contingent funding was for the U.S. Forest Service to issue a favorable Record of Decision approving the mine and for the company to have received all the major regulatory permits.

Augusta has never disclosed in regulatory filings that litigation challenging the permits and mine construction would have to be resolved before it could obtain the funds it needs to begin construction. Continue reading →

Posted in General, Investors | 4 Comments

Jaguar critical habitat designation sets stage for federal lawsuit

Posted on March 14, 2014 by admin

Augusta Resource Corporation’s proposed Rosemont copper mine lies squarely within the 764,000 acres of  “critical habitat” recently designated for the endangered jaguar, which virtually guarantees legal action by wildlife advocates if construction of the massive open-pit mine appears imminent.

It is unknown whether a judge would issue an injunction to prevent construction of the mine, but if the litigation history surrounding the jaguar is a guide, any legal challenge would likely take years to resolve.

Last week, the U.S. Fish & Wildlife Service (FWS) released its long-awaited critical habitat designation for the jaguar that protects the designated lands from land clearing or other modifications that would “adversely modify” the jaguar’s habitat.

“Critical habitat in the United States contributes to the jaguar’s persistence and recovery across the species’ entire range by providing areas to support individuals that disperse into the United States from the nearest core population in Mexico,” FWS stated in a press release. Continue reading →

Posted in EIS, Endangered Species, Wildlife | 1 Comment

Proposed Rosemont Copper Mine could create a toxic pit lake that won’t be mitigated

Posted on March 7, 2014 by admin
SSSR14_1014_Pages from rosemont-feis-vol-1

A continuing series

The next post in a continuing series examining the significant failures in the Final Environmental Impact Statement (FEIS) for the proposed Rosemont Copper Mine and the serious damage that the mine would inflict on Southern Arizona’s water supplies, wildlife, mountains and economy.

A lake will be formed inside the mile-wide, half-mile deep Rosemont open pit copper mine after mining ceases that could become deadly to migratory birds and other wildlife, according to the Final Environmental Impact Statement (FEIS) for the proposed Rosemont Copper mine,

The Coronado National Forest Service, however, is not requiring Rosemont Copper Company, a subsidiary of Vancouver, B.C.-based Augusta Resource Corp., to eliminate the dangerous impacts from the potentially poisonous pit lake nor provide financial assurances that threats to wildlife and people are reduce or avoided.

Rosemont Copper is seeking state and federal permits to construct the proposed mine would on the northeastern flank of the Santa Rita Mountains on the Coronado National Forest about 35 miles southeast of Tucson.

After conducting a thorough and exhaustive review, a coalition that includes hydrologists, biologists, geologists and other experts, along with ranchers, business owners and conservation groups, filed objections to the FEIS on February 14. They say the Forest Service’s decision not to include in the FEIS a comprehensive, long-term, mitigation plan for what the agency believes will be a highly-contaminated pit lake violates the Forest Service’s own rules, the National Environmental Policy Act (NEPA), and other laws protecting wildlife especially for migratory and protected birds. Continue reading →

Posted in EIS, The closer you look, the worse it gets | 2 Comments

HudBay charges Augusta is ignoring “critical permitting and financing risks”

Posted on February 27, 2014 by admin

HudBay Mineral Resources today said Augusta Resource Corporation has failed to address “critical permitting and financing risks that cast doubt on Augusta’s plans to develop the Rosemont project.”

HudBay issued the statement in response to Augusta’s issuance of a Director’s Circular earlier this week in which Augusta provided reasons why its shareholders should reject HudBay’s $540 million, all stock, hostile takeover bid.

HudBay said Augusta has disclosed no information in the Director’s Circular that “warrant modification by HudBay of its initial offer” to acquire all of Augusta’s 145 million outstanding shares of common stock that it doesn’t already control.

Toronto-based HudBay owns 23 million shares of Augusta purchased over the last four years. HudBay is offering about $2.90 a share for Augusta’s stock. Continue reading →

Posted in Deceptions, General, Investors | 1 Comment

Augusta claims Water Permit “imminent” despite EPA concerns

Posted on February 27, 2014 by admin

Augusta Resource Corporation’s Chief Executive Officer Gil Clausen on Monday said that Augusta expects to receive the U.S. Army Corps of Engineers Section 404 Clean Water Act permit for its Rosemont copper mine in the second quarter, despite the longstanding criticism of the Rosemont project by the U.S. Environmental Protection Agency, which has veto authority over Corps permits.

Clausen comments came during a  conference call with investors and analysts to discuss the Augusta board of director’s decision on Monday to reject  an unsolicited $540 million takeover offer from Toronto-based HudBay Mineral Resources.

Clausen, during the conference call, said Augusta expects to see a “draft” 404 permit in late March.

It is unknown what environmental mitigation plans would be included in the “draft” permit, but based on previous correspondence between the EPA and Army Corps, Augusta has not provided the necessary mitigation for the Rosemont project to receive the 404 permit.

The EPA’s Region IX office concluded in a Nov. 7 letter to the Army Corps that Augusta  failed to provide a “compensatory mitigation plan compliant with the regulations” and what has been provided is “grossly inadequate to compensate for mine impacts.” The EPA recommended that the “project not be permitted as proposed.” Continue reading →

Posted in Clean Water Act, EPA Criticism, Investors, water | 1 Comment