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Study Shows Troy Mine is a major socioeconomic disappointment for Lincoln County, the mine increases unemployment, sustains "Boom and Bust" economy.

THOMPSON FALLS, MT - Today, Dr. Tom Goerold, a nationally recognized minerals expert, presented the findings of a socioeconomic study of the Troy mine to the Sanders County Commissioners. The study was commissioned by the Rock Creek Alliance (Alliance) as a tool to assess the likely impacts of the proposed Rock Creek mine. The Troy mine, a copper/silver-mining project owned by ASARCO, operated from 1982 to 1993 before prematurely suspending operations due to declining metal prices.

The report examines the impact of the Troy mine by comparing the projected socioeconomic benefits in the Environmental Impact Statement (EIS) with what actually happened. "By virtually all measures, the Troy mine was a major socioeconomic disappointment for Lincoln County," said Dr. Goerold. "If this was a report card and I had to grade the socioeconomic performance of the Troy mine, I would give it a D," he added.

According to the study, tax revenues, employment, and other socioeconomic benefits of the mine were overstated, and the mine failed to remedy a county-wide trend toward boom-and-bust cycles. "Despite industry assertions that mining is good for the economy, communities throughout the west are still caught in the wake of mining's boom-and-bust," said Dori Gilels, Montana Director for the Alliance. "And the Troy mine is no exception," she added.

By drawing numerous unsuccessful job seekers to the region, the report also contends that the mine may have exacerbated a high unemployment rate. From 1982 to 1983, the unemployment rate and the number of unemployed jumped from 15.3% to 19.4%, and from 1,100 to 1,500 respectively.

"As evidenced by the Troy study, mining is simply not compatible with other forms of economic development," stated Mary Mitchell of the Alliance's Idaho office. She continued, "Unlike Lincoln County, Sanders County has a unique opportunity to examine the real impacts of mineral development, and to consider whether or not mining should be in their economic forecast."

Goerold, owner of Lookout Mountain Analysis, a natural resource consulting firm specializing in the quantitative analysis of environmental, energy, and mineral issues, developed a financial model for the proposed New World mine outside of Yellowstone National Park. His clients include the U.S. Department of Justice, U.S. Forest Service, Indian Tribes, environmental organizations, and others.

The Rock Creek Alliance, representing more than five hundred members and nine member organizations, has long been opposed to development of the Rock Creek mine because it poses an unacceptable risk to public lands, water quality, economic diversification, and local community infrastructure.