Draft Environmental Impact Statement for Roca Honda Mine

Chapter 3. Affected Environment and Environmental Consequences
Table 64. Overall economic impacts of Ronda Honda Mine
reclamation in Cibola and McKinley Counties
Description Impact
Total Economic Activity $6,855,668
Total Labor Income $1,745,581
Total Employment (number of jobs) 45
Total Taxes $343,218
Employment and Income
In contrast to the development and operation phases, the reclamation phase would directly
support the waste management sector (as opposed to the mining sector), which would enjoy the
majority of the increased labor income (table 65). However, the reclamation phase would also
create additional labor income in the food and health care sectors.
Table 65. Economic impacts of reclamation in Cibola and McKinley Counties
Impact Type Employment* Labor Income** Economic Activity
Direct Effect 30 $1,251,318 $5,098,053
Indirect Effect 8 $285,225 $1,030,284
Induced Effect 7 $209,038 $727,331
Total Effect 45 $1,745,581 $6,855,668
*Annual average full and part-time jobs.
**Total payroll costs (Salaries and wages, including benefits).
Taxes and Revenues
The tax impact during the reclamation phase would be about $343,000, including approximately
$33,000 in dividends and corporate profits taxes and $270,000 in IBS. The severance tax would
represent $24,383 and the excise tax $15,229.
Conclusion – Socioeconomic Effects of Alternative 2
The Roca Honda Mine would potentially create beneficial impacts of major magnitude due to the
creation of jobs, labor income, and tax revenues. Overall, the proposed project would support
over a billion dollars in economic activity, about 2,400 jobs with salaries worth $355 million, and
generate $81 million in local and State revenue during the life of the project. The extent of
impacts would be medium (localized) to large, since most of the jobs would be filled by area
residents but a portion still would travel from outside of the economic region. The likelihood of
impacts would be probable, since the relationship between an infusion of capital and direct,
indirect, and induced impacts is well established. The precedence and uniqueness of the impact
would be minor due to the historical nature of uranium mining in the Grants Mineral Belt of New
Mexico, though the area has not been a significant uranium producer for over 2 decades. Due to
the lack of operational uranium mines in the area with which to compare or base projected
DEIS for Roca Honda Mine, Cibola National Forest 295