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Draft Environmental Impact Statement for Roca Honda Mine

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Chapter 3. Affected Environment and <strong>Environmental</strong> Consequences<br />

their employees. Additional purchases by both <strong>Roca</strong> <strong>Honda</strong> and its employees would also occur<br />

outside of the ROI and are not represented here.<br />

The <strong>Roca</strong> <strong>Honda</strong> <strong>Mine</strong> would directly employ approximately 220–250 people during the<br />

operation phase (table 63), including mine workers and G&A workers as well as maintenance<br />

personnel. Workers in the ROI would experience a roughly $190 million increase in salaries and<br />

wages (including benefits).<br />

These workers would represent new purchasing power that would support additional jobs and<br />

payroll at local retail and service establishments in the area, most of which would occur in the<br />

ROI. Service industries (retail), unlike basic industries, consist of business firms that serve local<br />

markets. Through this spending, <strong>Roca</strong> <strong>Honda</strong> <strong>Mine</strong> would indirectly support almost 1,000<br />

indirect and induced jobs.<br />

Table 63. Economic impacts of <strong>Roca</strong> <strong>Honda</strong> <strong>Mine</strong> operation in Cibola and McKinley<br />

Counties<br />

<strong>Impact</strong> Type Employment* Salaries and Wages** Economic Activity<br />

Direct Effect 220–253 $160,565,612 $498,709,856<br />

Indirect Effect 140 $6,644,009 $29,366,608<br />

Induced Effect 791 $22,700,866 $78,963,010<br />

Total Effect 1,151–1,184 $189,910,487 $607,039,473<br />

* Annual average full and part-time jobs<br />

**Total payroll costs (including benefits)<br />

Taxes and Revenues<br />

New Mexico imposes a severance tax, conservation tax, and resource excise tax on uranium<br />

production. In addition, renewed uranium operations would generate State tax revenue through<br />

direct, indirect, and induced economic activity. These taxes include personal income tax,<br />

corporate income tax, and gross receipts tax.<br />

The total tax impacts from operation of the mine would be $44.5 million. Approximately $35.7<br />

million in IBS would result from operation of the mine. The severance tax (an IBS) would<br />

represent about $3.2 million. Property income, the dividends and corporate profits tax paid by<br />

corporations, would represent about $4.7 million. The Federal excise tax would be $1,988,374.<br />

Reclamation<br />

The 2-year reclamation phase would begin 2 years after completion of the mine operation.<br />

Theoretically, this phase would occur between 2032 and 2033. However, IMPLAN data is not<br />

available past 2030. As such, the estimated impacts from this phase may be overstated. Removing<br />

surface facilities, plugging mine shafts, recontouring the disturbance area, replacing stockpile<br />

soil, and establishing vegetation <strong>for</strong> grazing would support 30 direct PTE jobs and 45 total jobs<br />

(table 64). Unlike the development and operation phases, due to the nonspecialized workers<br />

needed <strong>for</strong> reclamation, nearly 100 percent of jobs should be filled by the local labor <strong>for</strong>ce.<br />

Almost $7 million in economic activity would result from this phase.<br />

294 DEIS <strong>for</strong> <strong>Roca</strong> <strong>Honda</strong> <strong>Mine</strong>, Cibola National Forest

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