> News > Front Page News

«--back to story

Email: "DNR approves Kennecott mine"
*To:		<--TO Email REQUIRED!
*From:		<--FROM Email REQUIRED!

MARQUETTE —After winning two critical approvals Thursday from the Michigan Department of Natural Resources, Kennecott Eagle Minerals Company officials said they remain on track to break ground in May on what would be the only primary nickel mine in the United States.
But state officials said additional hurdles lie ahead before mine construction could begin.
Michigan Department of Natural Resources Director Rebecca Humphries granted approval for the mining company’s surface use lease and post-mining reclamation plan Thursday.
The Michigan Department of Environmental Quality granted three additional permit approvals for the mine in December.
“Completion of the state approval phase marks an important milestone in the development of the Eagle project, as it moves the project to realization," Eagle General Manager Jon Cherry said. “Achieving the necessary state approvals has been the focus of our activities over the last four years, and obtaining them literally moves the project off of paper and onto the ground. The approval process has been thorough and rigorous, as expected of the first new mine in Michigan's modern era."
Opponents to the mine, some of whom have sued the DEQ to stop the project and are promising similar action against the DNR, were incensed by Thursday’s approvals.
Michelle Halley, an attorney with the National Wildlife Federation in Marquette, called Humphries’ decision to grant the unprecedented 40-year lease of public lands “a clear-cut case of the DNR sacrificing public land for private gain.”
The mine site would be located on the Yellow Dog Plains, a popular area for hunting, fishing, wildlife watching, berry picking and other public uses.
“Every taxpayer should be livid in light of a state agency closing off lands that are paid for and enjoyed by taxpayers to grant exclusive access to those lands to a company for private gain and with no permanent ties to the state,” Halley said.
Cynthia Pryor, executive director of the Yellow Dog Watershed Preserve in Big Bay, said, “it is unfortunate that the DNR has forgotten the premise for which it was formed — to protect and conserve our natural resources for use by the public.
“This decision turns state forest lands into an industrial out-lot and our region into a paradise lost.”
Mindy Koch, a resource management deputy with the DNR in Lansing, said though the DNR approvals have been granted, Kennecott cannot begin work on the mine.
The company still needs to secure a permit from the U.S. Department of Environmental Protection and a contested case petition by environmental groups against the DEQ needs to be decided.
“Beginning the construction of the mine or any of the ancillary structures they need, they can’t do any of that,” Koch said.
But beyond a ruling on the contested case petition, Koch said pending lawsuits would not block a mine construction start.
Kennecott officials are confident the legal actions can be resolved.
“We’re very hopeful we’ll prevail in the litigation,” Cherry said. “We think we have a sound permit.”
Kennecott submitted documents to the EPA more than a year ago and the agency expects a decision on the permit this spring, Cherry said.
If that decision affirms the company’s plan, that would keep Kennecott on line with plans to create 300 construction jobs this year, with a full crew working on the mine by summer, Cherry said.
Earlier this month, Humphries postponed her decision on the two Kennecott approvals until questions on site selection, water infiltration and ground subsidence at the mine were addressed.
After meetings were held with the mining company, DNR division chiefs recommended Humphries grant the approvals.
Halley said sufficient information is still lacking, saying the DNR failed to achieve its mission of protecting the state’s natural resources.
“Kennecott Eagle Minerals Company did not adequately address subsidence concerns, ignored some requests related to identifying and preventing leaks, and submitted materials that were woefully lacking,” Halley said. “Experts tell us that this project is still fatally flawed, making the DNR land-lease approval even more appalling.”
The land surface use agreement covers a 120-acre area of state-owned land where above ground facilities and equipment would be built to service mine operations, along with the portal to the underground deposit.
Koch said of several sites considered by Kennecott, the state land proved to be the best location for the mine.
“It was a safer site and had the least negative environmental impact,” Koch said.
Approval of the reclamation plan provides additional regulatory agency oversight of Kennecott's activities related to removing facilities and returning the land to pre-mining conditions once mining operations have concluded. The DEQ also has oversight of post-mining activities.
Kennecott officials said production of minerals from the Eagle Project could generate a royalty of up to $50 million to the state's Natural Resources Trust Fund, based on commodity prices for nickel and copper.
The trust fund secures revenue and royalties from non-renewable resource developments of oil, gas, and minerals and is used by the state to purchase recreational lands and fund various public recreation projects.
Additional concerns opponents expressed Thursday include inadequate annual fees for water quality monitoring and the state’s taxpayers potentially bearing clean-up costs from pollution once the mine is closed.

 

Subscribe to The Mining Journal

Share: