Cargill to Divest from Cayuga Salt Mine As Activists Demand its Closure
Cargill is getting completely out of the salt business and putting all their salt mines on sale.....
https://www.ithaca.com/news/ithaca/cargill-to-divest-from-cayuga-salt-mine-as-activists-demand-its-closure/article_d6b719aa-4749-11ee-9c26-af3c68dffa00.html
The multi-billion dollar Cargill corporation has announced its decision to divest its ownership of the Cayuga Salt Mine. The Cargill Corporation has owned and operated the mine on the eastern shores of Cayuga Lake in Lansing, New York since it was purchased by the company in 1970.
The move is part of an overall company decision by Cargill to exit the salt mining business altogether. According to recent reporting from The Deal, the company is also looking to divest from the Whiskey Island Salt Mine near Cleveland, which mines salt underneath Lake Erie. Cargill has hired Deutsche Bank to help divest from the mines.
This comes roughly one year after Cargill closed and intentionally flooded their Avery Island salt mine in Louisiana. Before the decision to close the Avery Island mine, a roof collapse killed two miners at the facility. As a result of the incident, federal regulators cited Cargill for “aggravated conduct constituting more than ordinary negligence” at the facility.
The Cayuga Lake Salt Mine reaches a maximum depth of 2,300 feet, making it the deepest salt mine in North America. It spans more than seven miles underground, tapping into the salt reserves under Cayuga Lake. The mine produces 2 million tons of rock salt annually, about half of which is purchased by New York State to help keep its roads and sidewalks free of snow and ice throughout the winter.
For the last five decades, local environmental activists with groups like Cayuga Lake Environmental Action Now (CLEAN) have taken issue with a multitude of ecological risks posed by the mine — such as mine flooding causing salinization of the lake — along with the fact that Cargill has refused to complete an environmental impact statement for the site.
While the New York State Department of Environmental Conservation has required Cargill to post a $3.5 million bond to insure the mine in the event of a potential flood, the agency has never required Cargill to complete an environmental impact statement.
John Dennis, an activist who works closely with CLEAN, told the Ithaca Times, “In 2000, one of their consultants produced a bulky 2-volume Expanded Environmental Assessment, but it was not as rigorous as an [environmental impact statement] and when eventually released to the public many pages were redacted in addition to there being redactions within released pages.”
Dennis states, “After salt mining starting at the south end of both lakes in the early 1900s, both Seneca Lake and Cayuga Lake have been more saline (higher sodium and chloride levels) when compared to the other nine Finger Lakes.” Dennis added, “The best explanation is that these are the only two Finger Lakes with salt mining operations on their shores and underneath Cayuga Lake.”
In addition, Dennis says that “Cargill has never revealed to the public how much money they have earned from the mine over the past 53 years. Even our attempts to FOIL the amount of royalties paid to New York for mining under Cayuga Lake have failed. The replies come back with all financial data redacted.”
Additional environmental concerns have stemmed from the Ithaca Central Railroad line that transports rock salt from the mine to Sayre, Pennsylvania. The railroad is owned by Watco, which leases the line from Norfolk Southern. Recently, CLEAN stated that on July 22, 2023, “Approximately 300 gallons of diesel leaked from one of the railroad cars that transport Cargill Salt, posing a significant risk to the local ecosystem and the surrounding communities.” The statement continued, “This incident underscores the urgency and importance of holding Cargill accountable for their environmental practices.”
Instead of divesting from the mine and selling it off to the highest bidder, CLEAN has advocated for the decommissioning of the mine. Program Manager Stephanie Redmond has said, “We believe it is imperative to ensure that the Cayuga Salt Mine is appropriately decommissioned and that adequate measures are taken to safeguard our environment, in particular the mined area under Cayuga Lake."
Dennis said that “Cargill should not be able to pass environmental liabilities on to a new owner.” He continued by saying, “Whether or not they are permitted to flood the mine at closure, they should be required to remove all equipment and introduced materials from the mine prior to closure.”
Co-founder of Clean, Brian Eden, has said, “No company without mining experience should be allowed to [assume Cargill’s state permits to mine]. The threat of a private equity firm reducing costs to make quick profits is unacceptable.”
In the wake of Cargill's announcement that it plans to divest from the mine, CLEAN issued a press release advocating for Cargill to post a “Financial Guarantee Bond of at least $1 billion” with New York State to “provide assurance and mitigate any future uncertainties that may arise,” from the mine.
The press release states, “CLEAN urges against a hasty departure or simply a sale of the mine. Allowing such an action would be irresponsible, considering the potential long-term impacts.” The release continued by saying that CLEAN “remains committed to ensuring environmental integrity and advocating for the well-being of the local community. State agencies like DEC and the Office of General Services should step up and take all necessary steps to protect our greatest natural asset.”
If Cargill does decide to decommission the mine, Dennis said that it should provide “generous severance packages and ongoing health insurance” for the more than 200 workers the multi-billion dollar corporation employs locally.
Dennis added that a portion of the present facility could be converted into a salt mining museum since the history of salt mining at the site is “fascinating” and stretches back more than 100 years.