Cripple Creek opposes mine extension

Owners of Colorado's largest gold mine are getting opposition to a $200 million plan to extend operations for four more years from an unexpected source - Cripple Creek, which was founded as a home for miners more than a century ago.

That's because the plan would extend open-pit mining into areas that would remove trees from a ridge just east of Cripple Creek, which now depends more on gamblers than miners for its economic fortunes.

Mayor Dan Baader and three other members of the Cripple Creek City Council called the mine's plans "unacceptable" and said they "will provide years of simply ugly mining activity" in a letter sent to state and Teller County officials last month. The letter asks the Colorado Division of Reclamation, Mining and Safety and the Teller County Planning Department to impose numerous conditions if the extension is approved.

The city wants Cripple Creek & Victor Gold Mining Co., owned by South African mining giant AngloGold Ashanti Ltd., to provide easements to extend a former tourist railroad from Cripple Creek to Victor, donate matching funds to build a recreation center for the two towns, design and build a historic site for century-old mining head frames and other equipment and ban its trucks from traveling through Cripple Creek, among other conditions.

The company said in a written response that it was "disappointed by the tone and scope" of the city's letter and that it "raises significant demands for which many are without any legal justification." Still, Larry Newcomer, vice president and general manager of Cripple Creek & Victor Gold, said the company is reworking its plan to make the reclaimed area near Cripple Creek more aesthetically pleasing.

"We are working on a plan to fill in the pit and restore the original slope as much as possible and replant mature trees," Newcomer said. "We are still interested in a constructive dialogue (with Cripple Creek), so we don't want to use the media to negotiate."

The Teller County Planning Commission is scheduled to consider the company's plan Aug. 12. If approved, the plan would go before Teller County commissioners Sept. 11. State officials haven't scheduled hearings on the plan, but company officials said Monday they hope for approval by early in the fourth quarter so they can start construction on the extension next spring if the project is approved by AngloGold Ashanti's board.

The extension would allow Cripple Creek & Victor Gold to continue mining until 2016 - the company's current permit allows mining through 2012. Early planning is under way on a second extension that would allow mining to continue for about another 10 years beyond 2016, said Peter O'Connor, chief administrative officer of AngloGold Ashanti North America Inc., a Greenwood Village-based AngloGold subsidiary.

Company officials haven't targeted what area would be mined in the second extension of the 5,500 acres Cripple Creek & Victor Gold owns in the mining district that stretches between the two historic mining towns, O'Connor said. Cripple Creek & Victor Gold has "continued exploration activities (in the district) and identified additional areas" to be mined, he said.

Neither extension would expand the 346-employee work force at Cripple Creek & Victor Gold, O'Connor said.

Cripple Creek & Victor Gold spent $200 million to expand the mine in 2004 to boost production to 400,000 ounces a year, but equipment problems and drought have hampered production. The mine has produced more than 2 million ounces of gold since mining resumed in 1994.

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UPCOMING

• Aug. 12: Teller County Planning Commission scheduled to consider plans by Cripple Creek & Victor Gold Mining Co. to extend mining on 5,500 acres between Cripple Creek and Victor from 2012 to 2016, 687-3048.

• Sept. 11: Teller County Commissioners to hear the company's plan.