US Interior Secretary urges squabbling groups to reach consensus on AZ copper mine land swap

Stalled by congressional delays and the indictment of an Arizona congressman, a land swap that would help develop one of the world's largest copper mines may face a new delay from a less than enthusiastic Obama Administration.

RENO, NV - 

 Interior Secretary Ken Salazar has urged miners, environmentalists, tribes and local officials to continue to discuss a long-stalled land swap proposal that would allow Rio Tinto's Resolution Copper to build an underground copper mine that would supply as much as 20% of U.S. copper for 50 years.

In testimony before the Senate Subcommittee on Forest and Public Lands in June, Resolution Copper President David Salisbury said the $4 billion project would be near the old Magma Copper underground mine.

Scottsdale, Arizona-based Elliot D. Pollack & Company says the annual impact of the mine itself is estimated to be US$535.6 million annually and is anticipated to generate total tax revenue in excess of US$10.7 billion.

For the project to move forward, Resolution needs to exchange 5,500 acres of environmentally sensitive land with the U.S. Government in exchange for 2,400 acres of the Oak Flat area of Tonto National Forest, where Resolution hopes to build the mine.  The parcels to be protected in the exchange include lands along the San Pedro River, an important migratory bird corridor, riparian and wetland habitat for threatened and endangered animal and plant species, and canyons and forests that are home to big game specifies.

However, the Obama Administration has not indicated if it will support the Southeast Arizona Land Exchange and Conservation Act, which Arizona senators John McCain and John Kyl introduced in the U.S. Senate earlier this year.

The land exchange was delayed nearly two years ago after Rep. Rick Renzi, R-Arizona, was the subject of a 35-count indictment accusing him of using his position as a member of Congress to promote the sale of the land owned by his former business partner.  The charges include conspiracy, wire fraud, money laundering, insurance fraud and extortion. The indictment claims Renzi agreed to support the land exchange bill, if as part of the swap, Resolution bought a 480-acre alfalfa field owed by his former business partner James Sandlin, in Renzi's home town of Sierra Vista.

After Resolution Copper refused the deal, Renzi reportedly solicited the Petrified Forest Group, a Las Vegas investment group, to purchase the land for US$4 million. Renzi allegedly promise the group, he would make sure the swap got through the Natural Resources Committee. After the group purchased the alfalfa field, Resolution Copper complained that Petrified Forest had received priority treatment.

Sandlin reportedly paid Renzi US$733,000, all of which was concealed both from Resolution Copper and Petrified Forest. The indictment claimed Renzi was having financial difficulty and "needed a substantial infusion of funds to keep his insurance business solvent and to maintain his personal lifestyle."

The U.S. Attorney in Phoenix who was in the midst of investigating Congressman Renzi was among those U.S. Attorneys who were forced by the Bush Administration to suddenly resign in December 2006.

Renzi did not seek re-election and was subsequently replaced by Ann Kirkpatrick as the representative for Arizona's First Congressional District.

Kirkpatrick has introduced a companion House bill which provides for the land swap.

Acting at the behest of Arizona's senators, Interior Secretary Salazar toured the Resolution Copper minesite Friday, which is expected to generate more than 1,000 permanent jobs and economically rejuvenate the community of Superior, Arizona. However, the swap is opposed by environmentalists who believe the land the federal government will receive isn't that valuable, and by others who worry about the mine's impact on an underground water aquifer.

Salazar also met with tribal leaders who oppose the project. The San Carlos Apaches also claim the land is sacred. One part of the land is called Apache Leap because members of the Apache tribe jumped off a cliff rather than surrender to U.S. Cavalry soldiers.

However, Salazar urged members of the community to have additional dialogue "and I think with that there may be a solution."

During last week's trip, the Interior Secretary also visited the Grand Canyon where he has recently withdrawn 1 million acres of federal land from new mining claims, and is trying to slow down a number of new uranium operations planned near the area.

Salazar indicated he will not change his mind concerning the mining claims withdrawal.

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