CLAIM’s Analysis of Benefits of the Project


Emgold says the benefits MAY include:(1) CLAIM says:
Stable, high wage employment Stable: Our analysis shows that while IMM states 400 jobs, the actual number of local jobs will range between 193 and 13. (Please see our Jobs analysis). When the mine closes all workers will be out of a job. Depending on the price of gold, the price of energy, the amount of gold actually found, and numerous other uncertainties, the mine could close in much less than the projected 20 year life span.
high wage employment: The high wage jobs will go to current IMM employees and experienced mine professionals. These people will be either short term contractors who will leave when their expertise is no longer needed or they will be recruited here from other mining operations. Emgold is not going to set up a college to train locals to become mining engineers. Untrained locals will be eligible for the jobs requiring minimal experience, at average local construction wages (~$30K/year), as will anyone from Roseville or Marysville.
Substantial and stable tax revenue through increased property taxes generated by the project and indirectly through increases in other city revenues. substantial - We are trying to quantify this item. In any event city and county government will need to compensate for increased resources required, especially emergency response services and damage to roads.
stable tax revenue - as discussed above, for at most 20 years, then nothing.
indirectly through increases in other city revenue - some, yes but impossible to quantify, depends on where employees purchase their supplies, so if they live "down the hill" that is where they will make their purchases. (e.g. gasoline averages about 10 cents a gallon cheaper in Auburn / Roseville than here)
Increased tax revenue can support increased bonding capacity for needed infrastructure projects. This is where the tax revenue will go...needed infrastructure projects. Like road repairs for all the damage from the trucks. What will GV and Nevada County be left with from this "tax revenue increase". No one can predict. Another gamble.
Large demand for goods and services to support local businesses within the community - strong economic multiplier effect. Rationality from a profit making company demands purchasing from the lowest bidder, regardless of where they are located. Most supplies can easily be trucked into town. Are there local sources of cyanide ? The employee commuters will also act rationally and purchase their supplies "down the hill" where prices are cheaper. Another gamble.
A long term committment to the community As we have already seen, is 20 years, possibly much less, long term? Long term would mean a business that is not predestined to close.
Restores a historical activity and culture to the community. For the benefit of a historical activity, check out the toxic legacy of mining at Sierra Fund: Mining's Toxic Legacy.
As for culture, we have lots of references to Mine Shafts around town without another one.

1) Executive Summary p.3   2) Project Description p.1-2

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