The New Mexico Copper Corporation has all the approvals it needs to start mining at Copper Flat Mine, located outside of Hillsboro, but it lacks water to process the metal. NMCC has found a company that has agreed to lease it 2,400 acre feet a year of water for 10 years, beginning June 1, 2019 and ending June 1, 2029, according to the Office of the State Engineer website.
The OSE controls water use in the state. An application to change the water’s point of diversion and use was filed with the OSE on Dec. 4. The OSE will accept protests to the application through Feb. 12, 2020.
The water is to be leased from Santa Teresa Capital, LLC, the water located in the Lower Rio Grande Underground Water Basin. The Copper Flat Mine is also in the Lower Rio Grande Underground Water Basin region, meeting the threshold requirement that water to be diverted from one location to another be within the same water basin.
The applicant is Tulla Resources Group, the private investment company of the Australian Maloney family, which also owns THEMAC, which owns the New Mexico Copper Corporation. Tulla is the largest shareholder in the New Mexico Copper Corporation. Tulla has loaned NMCC about $53 million over the last decade at 20-percent annual interest, according to THEMAC website.
As a point of comparison, Silver City uses 2,270 acre feet of water a year, much of it going back into the aquifer, which is less than the 2,400 acre feet in the NMCC application, which cannot be returned to the aquifer.
This application, if granted, will only solve about one-third of the NMCC’s water needs.
The Copper Flat Mine is about 2,200 acres, straddling private and Bureau of Land Management land. Because it is partly on federal land, the BLM was required to do an environmental impact statement, which estimated NMCC would use about 6,400 acre feet a year of water to process 30,000 tons a day of copper ore over a 12-year period.
The NMCC and various land owners have been involved in a still-unresolved court case since 2014 over water use and water rights. NMCC claims it has over 7,000 acre feet a year of water rights, appealing a court decision that gave it about 900 acre feet a year of water use. See the Sierra County Sun’s article for more information: Water rights are only holdup in NMCC startup of mining operations.)
The Office of the State Engineer website states protests to the NMCC application may take two forms.
One form of protest may be impairment of a water right, which requires the owner to identify the water right.
A second form of protest may be “public welfare/conservation of water within New Mexico,” according to the OSE website.
Protestants “must show how you will be substantially and specifically affected,” the OSE website states.
Those wishing to protest must file in triplicate with the State Engineer, 1680 Hickory Loop, Suite J, Las Cruces, NM 88005.