Draft Environmental Impact Statement for Roca Honda Mine

Tax Revenue
Chapter 3. Affected Environment and Environmental Consequences
Indirect business taxes (IBS)—the combination of excise, sales, and property taxes, as well as
fees, fines, licenses, and permits—would account for approximately 70 percent of the $859,000
increase in tax revenues during this period.
Development Phase
Baseline data gathering, initial site development, construction, and depressurizing activities
would occur over an approximately 4-year period. For purposes of this analysis the development
phase was modeled to begin in 2015 and conclude in 2018. Capital costs for development are
estimated at $300 million ($75 million per year), which captures the $19 million per year in
equipment and materials. The capital cost is the value of industry production, or the sum of value
added (which includes employee compensation) and the cost of goods. Since the $300 million
capital costs already factors in “intermediate expenditures” such as the cost of equipment and
materials, and RHR is able to estimate the number of jobs that would be supported during this
phase, the model was adjusted so as to not overstate the impacts. The multipliers for new
construction sectors reflect the portion of equipment and materials imported versus purchased
locally. Construction is a temporary impact and would cease to occur past the development phase.
An overview of its economic impacts is presented in table 59.
Employment and Income
Table 59. Overall economic impact of Roca Honda Mine
development in Cibola and McKinley Counties
Description Impact
Total Economic Activity $482,643,470
Total Salaries and Wages $150,993,568
Total Employment 840–890
Total Taxes $35,402,101
The proposed project would directly employ approximately 100–150 jobs annually, or support a
total of about 840–890 direct, indirect, and induced jobs (table 60). Indirect jobs would include
local vendors from whom RHR would make purchases and local retail stores and establishments
where Roca Honda employees would shop.
Table 60. Economic impacts of development in Cibola and McKinley Counties
Impact Type Employment* Salaries and Wages ** Total Economic Activity
Direct Effect 100–150 $127,662,117 $396,513,021
Indirect Effect 111 $5,282,503 $23,348,731
Induced Effect 629 $18,048,949 $62,781,718
Total Effect 840–890 $150,993,568 $482,643,470
*Annual average full- and part-time jobs.
**Total payroll costs (including benefits).
DEIS for Roca Honda Mine, Cibola National Forest 291