Powertech (USA), Inc.
Large Scale Mining Permit Application

Powertech (USA), Inc. has submitted to DANR a Large Scale Mine Permit application for a proposed uranium in situ leach mine and processing facility. The proposed mining and processing area is located about 13 miles northwest of Edgemont, SD. The legal location of the proposed operation is as follows:

E1/2 NE1/4, E1/2 SE1/4, SW1/4 SE1/4, S1/2 NW1/4 SE1/4, SE1/4SW1/4, and S1/2 NE1/4 SW1/4 Section 20, W1/2, W1/2 W1/2 NE1/4, and W1/2 NW1/4 SE1/4 Section 21, S1/2 Section 27, N1/2 NW1/4, SW1/4 NW1/4, and SW1/4 Section 28, Section 29, Section 30, E1/2 Section 31, Section 32, NW1/4, SW1/4, SE1/4, and S1/2 NE1/4 Section 33, Section 34, and Section 35; T6S-R1E, Custer County

Section 1, Section 2, Section 3, W1/2 W1/2 Section 4, Section 5, Section 10, Section 11, Section 12, NW1/4, W1/2 NE1/4, and NE1/4 NE1/4 Section 14, and N1/2 Section 15; T7S-R1E, Fall River County

For the Dewey-Burdock Project, Powertech will use injection wells to pump groundwater fortified with oxygen and carbon dioxide into the ore deposits to dissolve uranium. Production wells will be used to pump the uranium-laden fluids to the surface for recovery. The fluids from the production wells will be processed at two separate facilities at the mine site to extract and concentrate the uranium. Powertech may also recover vanadium in the future which will require additional processing equipment. After uranium has been removed from a well field, the groundwater will be restored to meet Nuclear Regulatory Commission restoration standards. Powertech will also be required to obtain an U.S. EPA aquifer exemption for any well field. Wastewater generated by the operation will be treated and disposed by injection in Class V injection wells permitted through the EPA Underground Injection Control Program. If there is not sufficient capacity in the Class V wells, the excess wastewater may be disposed by land application permitted under a Groundwater Discharge Plan, which is subject to approval by the State Water Management Board. The proposed post-mining land uses are rangeland and agricultural or horticultural crops.

The total acreage within the proposed permit boundary is about 10,580 acres, mostly on private land. About 240 acres of Bureau of Land Management land is included in the permit boundary. Powertech proposes to affect 2,528 to 3,793 acres depending upon whether primary deep well injection or secondary land application is used for wastewater disposal. Estimated production is one million pounds of uranium oxide (U3O8) per year. Estimated duration of the operation is 20 years.

DANR Status

Powertech submitted a large scale mine permit application on October 1, 2012. The department completed its review of Powertech's mine permit application and supplemental information and determined it was procedurally complete on January 16, 2013. On April 15, 2013, the department recommended conditional approval of Powertech's permit application. A contested case hearing on Powertech's mine permit application was held before the Board of Minerals and Environment from September 23-27, 2013, in Rapid City, SD.

The hearing was continued to the week of November 11-15, 2013. However, the Board of Minerals and Environment issued an Order postponing the hearing until the Nuclear Regulatory Commission and the U.S. Environmental Protection Agency have ruled and set the federal surety, and the state Water Management Board has decided the water rights. The Order further states that until those areas are completed "the BME cannot conditionally approve the permit and fulfill its statutory duties."

Powertech needs several local, state and federal permits before proposed in situ uranium mining can begin near Edgemont in southwestern South Dakota.