In Minnesota Mining Blow, Governor Walz Bans Mine Permits in Key Watershed

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Minnesota's Governor Tim Walz (D) has taken aim at Congress and President Trump's recent overturning of a mining moratorium for a part of the state that is considered environmentally sensitive.

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Gloves Off

It's state versus feds in another Minnesota showdown. This one is aimed at Congress' recently ending a 2023 Biden-era moratorium on mining projects in the Superior National Forest, which holds the state's much-loved Boundary Waters Canoe Area Wilderness.

Biden's moratorium took aim at a mining project near the wilderness area that Industrial Info Resources has been reporting on since 2007: Twin Metals Minnesota LLC's copper-nickel mine near Ely. Twin Metals is a subsidiary of Chilean miner Antofagasta.

Industrial Info Resources data find in addition to the underground mining operation, the project also includes construction of a 20,000-ton-per day flotation concentrator and carries an overall estimated total investment value of $1.7 billion. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

In April this year, Congress voted to overturn the mining ban, with the Senate approving the legislation in a tight 50-49 vote largely along party lines, which was then signed into law by President Donald Trump. For more on the history leading up to the legislation and the project, see April 20, 2026, article - U.S. Senate Clears Way for Minnesota Copper-Nickel Mine.

The Latest Move

On Tuesday, Walz issued an executive order that aims to effectively put a stop to the Twin Metals project and other nonferrous mining projects that may be under consideration for the area.

Walz's order is multi-pronged. It calls for:

• the Minnesota Department of Natural Resources (DNR) and Minnesota Pollution Control Agency to cease all permitting and environmental reviews for nonferrous mining projects in the Rainy River Headwaters Watershed (RRHW), which includes the Boundary Waters Canoe Area Wilderness and the Twin Metals site.
• state agencies to not participate in federal environmental reviews of nonferrous mining projects in the area.
• the agencies offering no new nonferrous mineral leases for the watershed.
• a review of every nonferrous mining lease within the RRHW.
• the DNR to draft potential legislation to permanently prohibit nonferrous mineral mining within the RRHW.

Iron Projects Not Dead

Virtually every plank of Walz's order emphasized that it was aiming at nonferrous mines--an important caveat in a state known known for its iron resources. Industrial Info Resources data find various Minnesota iron and taconite (a ferrous material) projects underway or on the planning board, which would seemingly not be affected by the governor's order.

With a buoyant U.S. steel industry expanding production, several iron mine restarts are a possibility for the state. Currently drawing to a close is the restart of a taconite mine near Nashwauk, less than 100 miles from the Twin Metals site. Taconite is a ferrous material, often containing around 25%-30% iron, which will be extracted with the addition of a new flotation processing plant at the site. The iron will be further processed in a pelletizing plant, producing 6.5 million tons per year of direct reduced grade iron pellets. Further downstream components in the process are being considered by developer Mesabi Metallics Company, a subsidiary of Essar Global Fund Limited, culminating in a steel mini-mill, although such a project remains some years away.

Industrial Info Resources also is tracking two other potential Minnesota iron ore mine restarts in Itasca County, which is home to the taconite mine. However, some of the state's nonferrous mining projects may not fare as well under the executive order.

Nonferrous Projects in Jeopardy?

Nonferrous mining projects will be under scrutiny. A proposed underground copper-nickel mine project from a Glencore-Teck joint venture is not very far from the Twin Metals site, although whether it falls within the Rainy River Headwaters Watershed of Walz's moratorium is uncertain.

Somewhat further away, but still within 70 or so miles of the Twin Metals site, is a proposed polymetallic mine development near Hoyt Lakes. A proposed copper-nickel development further away in Aitkin County that is being developed by Talon Nickel and Rio Tinto is probably not subject to the geographical limits of Walz's executive order. Other Minnesota mining projects are targeting manganese and rare earth elements.

Walz is not seeking reelection in this year's vote for governor.

Key Takeaways

• Minnesota's Governor Tim Walz (D) has issued an executive order forbidding nonferrous mining permits in a key area of the state, moving against the Trump administration's lifting of a mining moratorium earlier this year.
• In the sites of executive order is a planned copper-nickel mining project from a subsidiary of Chilean miner Antofagasta.
• While the state's iron-related projects are not under scrutiny, other nonferrous mining projects may not fare as well.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).