News

MineWeb.com
June 16, 2010

After several years of protests, litigation and delays attributed to the global economic downturn, the U.S. is about to get its first new primary nickel mine in years in the historic mining region of the Upper Peninsula of Michigan.

Rio Tinto announced Tuesday it will invest $469 million in the development of the Kennecott Eagle Mine.

Located northwest of Marquette, Michigan, Eagle will be the only primary nickel mine operating in the United States. It will be the first new mining operation to be built in Michigan in years.

Rich copper and iron ore deposits were first discovered in the Upper Peninsula (U.P.) of Michigan in the 1840s.  Mines in the area yielded more mineral wealth than the California Gold Rush.  American Indian casinos now draw a tourism crowd to the U.P.

Rio Tinto's funds will enable construction of a new underground mine and its associated surface facilities, rehabilitation of the existing Humboldt Mill, and development of a multi-use access road.

Site work on the property began last month.  The company had recently relocated a small group of Native and non-native American protestors who had been camping on the site since mid-April.

"We respect their right to protest and call attention to an issue they feel is important," Kennecott's Matt Johnson. "Their presence has made it possible for us to have conversations with them that enable us to gain a better understand of their priorities and concerns."

"At the end of the day we all want the same thing: confidence that the mine will be built and managed in a way that is compatible with the U.P.'s environment and way of life."

The Eagle mine is the first mining project to be permitted under Michigan's 2004 nonferrous metallic mine law. Construction of the mine and mill will begin this year and first production is expected in late 2013. The main focus of work this year will be construction of an advanced water treatment plant and related environmental control system.

Kennecott hopes Eagle will produce separate nickel and copper concentrates containing an average of 17,300 tonnes of nickel and 13,200 tonnes of copper annually over six years.  Ore will be transported to the old Humboldt Mill now undergoing rehabilitation. The mill was part of Cleveland Cliffs' Humboldt iron ore mine operation near Champion, Michigan.

Rio Tinto is exploring for additional resources in the immediate area.