A state board approved financial assurance increases during a teleconference meeting Thursday for the operator of South Dakota’s only active, large-scale gold mine.
The Board of Minerals and Environment decided to increase the assurance — such as bonds posted by insurance companies — that Wharf Resources must maintain. If the company fails to properly close or clean up the mine, the state could use the money to do the work.
Wharf Resources, a subsidiary of Chicago-based Coeur Mining, runs an open-pit gold mine near Lead and Terry Peak in the northern Black Hills.
The board raised the total amount of required surety bonds for reclamation — restoring the mine to a natural-looking state — from $72 million to $74 million. The board also increased the required surety bond amount for long-term monitoring, water treatment and maintenance after the mine closes from $53 million to $65 million.
Eric Holm, with the Department of Agriculture and Natural Resources, said the increases account for inflation, new facility additions and the construction of a selenium treatment plant to prevent water contamination.
The mine has operated since 1982 and has produced more than 3 million ounces of gold. In 2023, the mine produced 93,502 ounces of gold and 267,786 ounces of silver, generating $82 million in free cash flow, according to Coeur financial reports. The Wharf Mine employs 245 workers with an annual payroll of $32 million, and the company paid $6.3 million in gold severance taxes to the state last year.
