News

Duluth News Tribune
March 10, 2010

Everything we hear from government these days is all about jobs. At the federal level, members of Congress want to create jobs. At the state level, our Legislature wants to see jobs in Minnesota. Given the fact there are more than 200,000 people unemployed in Minnesota, it is no wonder. There is a very good reason for this desire to have jobs. We all know it's the only way to generate revenue and to establish a base for future fiscal stability.

Fortunately, we have a tremendous opportunity to create thousands of new jobs in the next generation of mining: Minnesota's non-ferrous industry.

The first project, PolyMet Mining, is ready to go, and the benefits are great. The PolyMet project's $600 million capital investment alone would require 1.5 million hours of work by skilled trades workers over two years. When fully operational, there would be 400 full-time jobs with an annual payroll of nearly $40 million. Supplier and vendor spin-off jobs, according to the University of Minnesota Duluth, would create an additional 500 jobs in St. Louis County, adding another $242 million to our economy.

As a result, there would be tens of millions of dollars in tax revenue generated for cities, schools and the state each year. As Minnesota struggles economically, these benefits from mining are extremely important.

Risks also are being addressed. Minnesota already has a demanding environmental-review and permitting process. This comprehensive process assures all companies are required to meet Minnesota's strict environmental standards, making sure our air quality, water quality and taxpayers are protected. If any company doesn't, it doesn't receive permits.

In addition, for non-ferrous mining operations specifically, before a company can receive a "Permit to Mine," Minnesota requires an "up-front deposit" of financial assurance to cover all costs of potential reclamation. The state already requires this comprehensive financial assurance to be bankruptcy-proof, assuring taxpayers are protected. The financial assurance also must be reviewed every year and be continually in place so that no company can "walk away" from its responsibility.

Clearly, all requirements are in place for PolyMet and other mines that might follow. Any proposed legislation that attempts to place additional restrictions on non-ferrous mining is unnecessary and duplicative. It will do nothing to better the environment. It will only cause significant project delays and jeopardize investment and job opportunities in Minnesota.

Demand for base and precious metals is growing both domestically and globally. Mining development for this demand is growing as well, much of it in countries that have little regard for environmental safeguards.

This emerging industry will mine copper, nickel, platinum, palladium, cobalt, and gold. These are metals all of us use every single day of our lives. Our computers, our cell phones, catalytic converters to remove emissions from automobiles, alloys for our defense systems, stainless steel for medical devices, and wiring and plumbing for our homes all come from these metals.

Currently, the U.S. is dependent on foreign countries to supply a majority of our increasing consumption of these metals. We can start to move toward greater self-reliance.

We all talk about the need for a green economy. There are tons - yes, tons - of copper in the largest wind turbines. Hybrid cars also require several of these metals in amounts significantly greater than regular automobiles.

We have a great opportunity for Minnesota. We can help meet the growing demand for metals with Minnesota jobs, and we can do it with Minnesota's strict environmental standards. We can have jobs and a clean environment.

Let's provide these much-needed jobs for our Minnesota families without any additional, unnecessary cost and delay. Let's do it here, do it right and do it now.

FRANK ONGARO of Duluth is executive director of MiningMinnesota, an industrial trade organization that represents non-ferrous mining companies, suppliers and vendors, and other mining supporters.