U.S. Senate Clears Way for Minnesota Copper-Nickel Mine

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

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Summary

The U.S. Senate on Thursday voted to overturn a Biden-era moratorium on mining in a 225,500-acre watershed area in Minnesota's Superior National Forest, paving the way for a Chilean mining subsidiary to build a copper-nickel mine near the federally protected Boundary Waters Canoe Area Wilderness.

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A Tight Vote

In a tight 50-49 vote on Thursday, the U.S. Senate voted to overturn a 2023 moratorium on mining in Minnesota's Superior National Forest, part of the Boundary Water wilderness spanning Minnesota and Ontario. Overturning the moratorium paves the way for Twin Metals Minnesota, a subsidiary of Chilean miner Antofagasta, to build an underground copper-nickel mine about five miles upstream from the popular federally protected Boundary Waters Canoe Area Wilderness.

Missouri Senator Josh Hawley (R) was the only senator to abstain from the vote, which fell largely along party lines, with two Republicans voting with Democrats against overturning the measure. According to Industrial Info Resources data, in addition to a cut-and-fill/stope mining operation, the project also includes construction of a nearby 20,000-ton-per day flotation concentrator and carries an overall estimated total investment value of $1.7 billion. The mine is expected to extract approximately 95 million pounds of copper and 20 million pounds of nickel over a 30-year mine life.

Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project report.

A Long Time Coming

The Twin Metals Minnesota project has been in development for at least 20 years, during which time it has drawn significant opposition over its potential adverse effect on the Boundary Waters wilderness area. Industrial Info Resources has been reporting on the project since 2007.

The Superior National Forest, established in 1909 by President Theodore Roosevelt, is within the greater Boundary Waters area in Minnesota. Descendants of Roosevelt sent a letter to the Senate in February urging the body not to overturn the moratorium. The Boundary Waters Canoe Area Wilderness is within the Superior National Forest near the proposed mine site.

The study of a potential mining moratorium for the region first took root under the Obama administration in 2016, but the review was called off in 2018 during President Donald Trump's first term. Under the Biden administration, the environmental review was resumed, and a severe strike against the mine seemed to be delivered in 2023 when a 20-year moratorium on mining was issued for areas of the forest that include the proposed mine site, which also has seen back-and-forth regarding the status of its federal mining lease.

The Biden-era moratorium last week was overturned using the 1996 Congressional Review Act, which allows lawmakers to reverse recently implemented federal regulations with a simple majority vote. The measure already has passed the House and now goes to President Trump to be signed into law, easing the mine's development, although future challenges to the project almost certainly loom in court. The status of the site's federal mining lease (now active) also has been subject to back and forth with the changes in administrations.

Other Minnesota Mining Projects

According to Industrial Info Resources data, Twin Metals Minnesota is not the only miner developing a copper and nickel mine in Minnesota. Two similar projects are in development in the state, although at a smaller scale than the Boundary Waters mine.

One of those copper-nickel mines is a joint venture project of Talon Metals (51%) and mining giant Rio Tinto (49%), with Talon holding the option to increase its stake in the future. The companies are developing plans for 1.2 million-ton-per-year underground nickel-copper mine in Aitkin County with an estimated nine-year life. The companies are considering the addition of a pilot-scale carbon capture and storage (CCS) system at the mine, which will use an existing flotation facility. Subscribers can learn more from detailed reports on the mine and CCS projects.

According to Industrial Info Resources data, an even larger Minnesota mine, with an estimated 30-year life and requiring investment of about $500 million, is being planned for Saint Louis County under a joint venture of Glencore and Teck Resources, although Industrial Info Resources doesn't expect to see construction on the facility begin for another few years. Subscribers can click here to learn more about the project. In addition to copper and nickel, the mine also would produce platinum group metals (PGM).

Key Takeaways

• The U.S. Senate last week narrowly voted to overturn a federal moratorium on mining in Minnesota's Superior National Forest, paving the way for construction of a copper-nickel mine near the protected Boundary Waters Canoe Area Wilderness.
• The 8 million-ton-per-year mine is being developed by Twin Metals Minnesota, a subsidiary of Chilean miner Antofagasta.
• According to Industrial Info Resources data, there are two other active copper-nickel mining projects in Minnesota, although both are much smaller in scope and carry a combined total investment value of $626 million.

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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).