Local News

Legislative committee to look at economic impactof gold mine closure

Oct 06, 2014

A legislative panel chaired by Lt. Governor Brad Owen meets near Republic on Oct. 9 to take a look at what the state might do to help soften an economic blow to the local economy expected after a major employer in Northeast Washington closes its mining operation next year.

The Legislative Committee on Economic Development and International Relations convenes at 9 a.m. Thursday at the Ferry County Fairgrounds. The Buckhorn Gold mine under Buckhorn Mountain near Chesaw in Okanogan County, operated since 2008 by the Kinross Corporation, is reaching the end of its life cycle and is expected to close when its reserves are depleted sometime in late 2015. A separate Kinross operation, the Kettle River Mill, processesore from the mine. The mill is about 47 miles from the mine near Republic.

The closure of Buckhorn means the potential loss of about 230 jobs in Ferry and Okanogan County between the two facilities, plus another 130 contractor jobs.

Citing a 2012 study using 2011 data, Kinross puts its direct payroll at $19 million with a total direct and indirect payroll of $27 million in Okanogan and Ferry counties and a payroll of $38 million and a total of

845 jobs statewide. The average wage of a Kettle River - Buckhorn employee is $82,559 a year, surpassing the average Ferry County wage of $35,290 a year by 134 percent. In addition, the mining and milling operation receives goods and services from 354 Washington-based businesses.

"The closure of the mine and supporting operations will obviously have a major impact on the Northeast

Washington area," said Lt. Governor Owen, who toured the Kinross operation in April. "On a comparative local scale it would be as if the Boeing Company were to leave the Puget Sound area or Microsoft were to leave Redmond."

The lieutenant governor will be among the presenters during the meeting, focusing on what assistance the state was able to provide in the late 1980s and early 1990s during the decline of the timber industry in Southwest Washington by passing worker assistance bills and other economic development measures to help displaced loggers and lumber mill workers in timber communities. Owen served in the Senate at the time, representing parts of Mason and Grays Harbor counties.

The bi-partisan study committee will hear from company officials at Kinross as well as presenters from the state Department of Commerce, the Office of Regulatory Innovation and Assistance, the Employment Security Department, the Office of the Superintendent of Public Instruction and the Department of Social and Health Services. The list of presenters is on the meeting agenda.

The session, expected into early afternoon, will be recorded by TVW for later broadcast. Following the meeting and lunch the committee will tour Kinross's Kettle River facility.