Environmentalists sue over US approval of ioneer's Nevada lithium mine (updated)

Ioneer

31/10/2024 22:35

(Adds responses from Interior Department and company, paragraphs
5-7)

        * 
      Lawsuit claims mine threatens rare wildflower and
environment
    

        * 
      Interior Department and ioneer defend mine approval
    

        * 
      Mine to supply Ford and other EV makers, backed by $700
million
loan
    

  
    By Nate Raymond, Ernest Scheyder
       Oct 31 (Reuters) - Environmental and Indigenous groups
on Thursday filed a lawsuit challenging the U.S. Interior
Department's approval of ioneer's  INR.AX  Rhyolite Ridge
lithium mine in Nevada, the first domestic source of the battery
metal to be permitted by Democratic President Joe Biden's
administration.
In a lawsuit filed in federal court in Las Vegas, groups
including the Center for Biological Diversity argued the project
posed an existential risk to the rare wildflower Tiehm’s
buckwheat and could drive it to extinction.
    They said the mine would also adversely impact groundwater,
springs, wetlands, air quality, cultural resources and wildlife
habitats, and would transform a remote part of rural Nevada into
an industrial complex.
The groups said the Interior Department's Bureau of Land
Management (BLM) approved the mine without ensuring that it
would not jeopardize the wildflower or unduly impact the
environment in violation of the National Environmental Policy
Act, the Federal Lands Policy and Management Act, and the
Endangered Species Act.
    The Interior Department declined to comment.
    Australia-based ioneer said it does not expect the lawsuit
to "meaningfully affect our proposed development timeline" and
that it believes the project can be developed sustainably.
    "We are confident that the BLM will prevail against this
lawsuit," said Chad Yeftich, ioneer's vice president of
corporate development and external affairs. "We intend to
intervene and vigorously defend the BLM's decision, which was
based on its careful and thorough permitting process."
The critical minerals miner received approval for the mine last
week following a more-than six-year review process during which
regulators, ioneer and conservationists tussled over the fate of
Tiehm’s buckwheat.
The permit cleared the way for development of a mine that will
become a key supplier to Ford Motor  F.N  and other
electric-vehicle manufacturers. It was issued amid a flurry of
recent moves by Biden administration officials to support
critical minerals production and offset China's market
dominance.
The permit also unlocked a $700 million loan from the U.S.
Department of Energy, as well as a $490 million equity
investment from Sibanye Stillwater  SSWJ.J  to fund the project.
    The Interior Department said when it approved the mine that
it had taken numerous steps to protect the ecosystem near the
mine site, roughly 225 miles (362 km) north of Las Vegas. 
    The project contains enough lithium to power roughly 370,000
EVs each year. Construction is slated to begin next year, with
production commencing by 2028.

(Reporting by Nate Raymond in Boston and Ernest Scheyder in
Houston
Editing by Matthew Lewis)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond;
347-243-6917; Reuters Messaging:
rm://nate.raymond.thomsonreuters.com@reuters.net/))