News

Mesabi Daily News
July 30, 2010

A nonferrous mining project going ahead in Upper Michigan has gone through some of the same travails as the PolyMet nonferrous project in Northeastern Minnesota in recent years.

The Kennecott Eagle mine broke ground this summer to start construction of surface buildings in a three-year construction span that will result in startup of the underground nickel mine by 2013. It will create 200 permanent jobs and 500 construction jobs.

The PolyMet copper/nickel/precious metals project has already had nearly five years of environmental review and is still in the Environmental Impact Statement process. The project, slated for the former LTV Mining Co. site near Hoyt Lakes, will create 400 permanent jobs, more than 500 spin-off positions and 1.5 million hours of construction work.

Other nonferrous mining projects on the east Iron Range are waiting in the wings to follow a PolyMet mine opening.

The Michigan mine, located in northern Marquette County in the Upper Peninsula, was first considered more than a dozen years ago in an area where there had been an extensive mining district previously.

But it was not until 2004, when extensive new laws were brought into being by Michigan state government, that serious planning began leading to the go-ahead for Kennecott Eagle.

While a number of companies were exploring for minerals in Upper Michigan, Kennecott was the first one to apply for permits under the new law, said Kennecott Eagle spokesperson Deborah Muchmore.

The 2004 law made Michigan one of the strictest states in the nation for nonferrous mining oversight, but also brought it into the modern era of technological advances in for that kind of mining. All stakeholders, mining companies, regulators, communities and environmental groups, had key parts to play in crafting the laws, she explained.

By 2006, Kennecott went ahead with applying for permits for mining, water quality and air quality.The state was the lead authority on an environmental impact assessment. While several appeals are still pending, the three-year construction phase for Kennecott Eagle has begun. In July, the U.S. Environmental Protection Agency determined that no federal permit was needed for an underground water discharge system as Kennecott planned to build the system above-ground.

"The permitting process was smooth and rigorous," Muchmore said, "and was challenged all the way through" by "highly vocal" groups opposed to nonferrous mining.

The mine, when operational by 2013, is expected to produce about 300 million pounds of nickel and 250 million pounds of copper, in what will be considered the first primarily nickel mine in the U.S., according to Kennecott Eagle's Web site.

Waste rock will be stored underground, and ore will be brought to the surface for transport by truck to the nearby, existing Humboldt Mill for processing and then shipped elsewhere for more processing. Kennecott is expected to invest more than $469 million in the project. Nickel is used in the making of stainless steel, laptop computers, high-tech batteries and other advanced products.

It's important for mining companies in the current era to understand the rules and reasons for cafeful, safe mining, and for regulators to have oversight. Communities want economic benefits from mining and employment with it, "and at the same time you want your environment protected," Muchmore said of the 2004 legislative crafting.

The input from all sides in the Michigan legislation has been worth it for everyone, she said. Still, "It has been a long development process."

In Minnesota, PolyMet official LeTisha Gietzen observed that Kennecott's situation has been overseen by state officials only, with no federal requirements to be met. "That changes things significantly," she said. "They're really not comparable."

On the Iron Range, the nonferrous mining company has had "a ton of local support for the project," with only some opposition mostly centered in theTwinCities.

The recently modified Environmental Impact Statement process including the EPA and the U.S. Forest Service "will streamline the process," she said.