A May 2023 aerial view of the Wharf Mine near Lead. (Courtesy of EcoFlight

State board increases financial protections for Black Hills gold mine

PIERRE, S.D. – A state board approved financial assurance increases during a teleconference meeting Thursday for the operator of South Dakota’s only active, large-scale gold mine. 

The Board of Minerals and Environment decided to increase the assurance — such as bonds posted by insurance companies — that Wharf Resources must maintain. If the company fails to properly close or clean up the mine, the state could use the money to do the work.

Wharf Resources, a subsidiary of Chicago-based Coeur Mining, runs an open-pit gold mine near Lead and Terry Peak in the northern Black Hills. 

The board raised the total amount of required surety bonds for reclamation — restoring the mine to a natural-looking state — from $72 million to $74 million. The board also increased the required surety bond amount for long-term monitoring, water treatment and maintenance after the mine closes from $53 million to $65 million. 

Eric Holm, with the Department of Agriculture and Natural Resources, said the increases account for inflation, new facility additions and the construction of a selenium treatment plant to prevent water contamination.

The mine has operated since 1982 and has produced more than 3 million ounces of gold. In 2023, the mine produced 93,502 ounces of gold and 267,786 ounces of silver, generating $82 million in free cash flow, according to Coeur financial reports. The Wharf Mine employs 245 workers with an annual payroll of $32 million, and the company paid $6.3 million in gold severance taxes to the state last year.

People are also reading...

Weather

loader-image
Rapid City, US
6:35 am, December 12, 2024
temperature icon 17°F
overcast clouds
Humidity 82 %
Pressure 1025 mb
Wind 8 mph
Wind Gust: 0 mph
Visibility: 10 km
Sunrise: 7:19 am
Sunset: 4:14 pm
Sarah Bestgen

Market News

Share via
Copy link