U.S. Energy Corp. (USEG)

[ergo sum]

The longest-running mining fight in the West entered a new chapter in April as U.S. Energy won federal approval on a molybdenum-mine plan on Mount Emmons, just outside Crested Butte.

The U.S. Forest Service's approval sets the stage for an environmental-impact statement.

"This is still preliminary," said Lee Ann Loupe, a Forest Service spokeswoman. "It will take some time to determine the next steps. It is a lengthy process."

The Forest Service and the company will meet in the next several weeks to discuss the project, Loupe said.

Riverton, Wyo.-based U.S. Energy has been trying to develop the mineral deposit on Mount Emmons — known as the Red Lady — since 1970 but has faced stiff resistance from town residents.

U.S. Energy has worked with a series of large mining companies — AMAX, Phelps Dodge and Kobex Minerals — to develop one of the richest molybdenum reserves in North America.

Thompson Creek Metals, U.S. Energy's last partner, withdrew in 2011 after working three years on the mine.

"We've taken the work that was nearly completed by Thompson Creek and finalized it," said U.S. Energy president Mark Larsen.

The 204-page plan calls for a mine that would produce 12,600 tons of ore per day and operate for 33 years. Construction would require 1,000 workers.

Crested Butte, which has developed into a ski, mountain-bike and recreation destination, has a population of 1,500.

"The question is: What would be the impact of mining on the economy of the town?" said Bill Ronia, president of the Red Lady Coalition, a group of local businesspeople and landowners opposed to mining.

Last year, U.S. Energy was in negotiations with the Red Lady Coalition, the town officials and the High Country Citizens Alliance — another group opposed to mining — to see whether a federal land swap could be engineered.

The swap didn't develop, but Larsen said it is still a possibility.

"We had a very good working relationship with the people in Crested Butte," Larsen said. "We hope to continue to work with them."

Larsen declined to put a price on the mine development and said U.S. Energy will continue to look for partners.

The Nasdaq-traded company, which also drills for oil and gas, has a market capitalization of $42 million and posted a loss in 2012, according to corporate filings.

"They need a partner," said Ronai. "But without the project costs, it is hard to tell if this is a credible project or pie in the sky."



Read more: U.S. Energy gets federal OK for Mount Emmons moly mine - The Denver Post http://www.denverpost.com/business/ci_23142989/u-s-energy-gets-federal-ok-mount-emmons#ixzz2S2NduwcQ
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