North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Owners of the Kensington mine announced in mid-August that it has finished building nearly all the facilities that it needs to begin operations.

But plans for a disposal facility for a slurry containing millions of tons of mine waste into a small lake are still on hold, the Coeur d'Alene Mines Corp. said.

The federal 9th Circuit Court of Appeals ruled in May that the Idaho-based company's plan to pour the waste into Lower Slate Lake violates the Clean Water Act.

The 23-acre lake is in the Tongass National Forest and drains into Berners Bay.

A Kensington manager said in a letter to supporters that the mine's legal team is working to file a petition for a rehearing of the 9th Circuit ruling. The deadline for filing is Aug. 20.

The company said it has finished building all other parts of the mine, including roads, bridges, temporary housing, support buildings and tunnels.

Kensington should be in full operation by the middle of 2008, Kensington's special project manager Rich Richins said in the letter.

The mine, 45 miles northwest of downtown Juneau, is expected to produce up to 150,000 ounces of gold annually for 10 to 15 years.

The court has said the tailings would contain concentrations of several potentially hazardous materials, including aluminum, copper, lead and mercury.

"Until Coeur comes up with a legal mine plan, they can't start operations," said Buck Lindekugel, conservation director of Southeast Alaska Conservation Council. "The ball's in their court to move forward," he said.

Coeur d'Alene Mines is one of the world's largest silver producers.