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Board approves expansion of Wharf Mine

A May 2023 photo of the Wharf Mine near Lead.
EcoFlight
A May 2023 photo of the Wharf Mine near Lead.

A South Dakota board is approving an expansion of the state’s only active gold mine.

The minerals and environment board’s move allows Wharf to expand its open-pit mine near Terry Peak by 50 acres.

The permit allows Coeur Mining access to land south of its current permit boundary. The company says disturbance will exist on Wharf-owned land four miles west of Lead. Documents indicate the expansion will extend the total life of the mine by three years, to 2030.

The Wharf Mine is an open-pit mine—that’s a surface mining technique to extract minerals that are closer to the surface.

Rex Hagg is chair of the board and brought the recommendation to approve Wharf’s permit and points to state law.

“That statute essentially requires us to approve that permit in the event they meet the conditions of the application," Hagg said.

In the board findings, Coeur Wharf said the topsoil in the area will be stripped and stockpiled for use in reclamation. Any waste rock will backfill the open mine pits. Any ore removed will be processed through cyanide heap leach methods before being treated and offloaded to an approved area at the mine.

The permit approval allows Wharf to move into the new area dubbed the Boston Expansion. The company said it will continue to mine the existing Portland Ridge deposit while backfilling and reclaiming various areas it has already mined.

The application approve comes despite the acknowledgement of water contamination in nearby False Bottom Creek. Water testing show elevated levels of selenium exceeding what’s allowed by the EPA.

Carla Marshall is Lakota and shared concerns about the expansion.

“I do find that the findings of contamination in False Bottom Creek does have some—that should be considered in making this decision on whether or not they get this expansion until they get that cleaned up,” Marshall said.

The board decided the contamination should not stall permit approval and voted unanimously in favor.

Coeur Wharf mined almost 79,768 ounces of gold and about 46,067 ounces of silver in 2022.

Lee Strubinger is SDPB’s Rapid City-based politics and public policy reporter. Lee is a two-time national Edward R. Murrow Award winning reporter. He holds a master’s in public affairs reporting from the University of Illinois-Springfield.