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Serving Northern St. Louis County, Minnesota

PolyMet EIS release a major step forward for company

Marshall Helmberger
Posted 10/24/09

The public release of the draft environmental impact statement on PolyMet Mining’s proposed copper-nickel and precious metals mine, near Hoyt Lakes, is an important step forward for the …

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PolyMet EIS release a major step forward for company

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The public release of the draft environmental impact statement on PolyMet Mining’s proposed copper-nickel and precious metals mine, near Hoyt Lakes, is an important step forward for the Vancouver-based company.

“It’s the culmination of more than four years of work,” said LaTisha Gietzen, PolyMet’s Vice President for Public Governmental and Environmental Affairs. “We started the scoping process back in 2005,” Gietzen noted.

The draft EIS, which was set to be released online by the DNR by Oct. 23, will examine alternatives for developing the mine site and operating a nearby processing facility, formerly owned by LTV. While critics of the plan view the release as an opportunity to re-engage in a debate over the future of non-ferrous mining in Minnesota, Gietzen said she thinks the study will strengthen the case for the proposed mine. “There’s been a lot of misinformation out there about what we’re trying to do. This study will provide the facts,” she said.

The release of the study, which won’t be official until it is published in the state’s Environmental Quality Board’s official register on Nov. 2, certainly won’t be the final word on the project. The release opens an automatic 45-day public comment period, and that period could well be extended.

Environmental groups along with the Environmental Protection Agency have already suggested the comment period be extended to at least 120 days to allow the public more time to examine and comment on the hundreds of pages of technical documents and material associated with the EIS. “Recent similar projects elsewhere in the country that were submitted for public review under NEPA have had 120-day review periods, either initially or through one or more extensions,” noted the EPA’s Kenneth Westlake in a July 31 comment letter to the DNR. “We observe that public interest in copper mines in the Upper Midwest is high. Decisions made for this project may be precedent-setting, as it is the first large-scale copper mine in Minnesota,” Westlake added.

PolyMet officials indicate they expect to complete the EIS and permitting process and be under construction by the end of 2010, but that could prove a challenging timeline, given the frequent delays associated with environmental review, particularly on major projects. Concerns raised by a number of cooperating agencies, both federal and tribal, could also require additional research in order to respond adequately to comments. Environmental groups will undoubtedly raise concerns about the adequacy of water quality protections and other issues. “Acid mine drainage is still the big issue,” said Betsy Daub, with Friends of the Boundary Waters Wilderness. Daub points to acid leaching problems at other sulfide ore mines in the U.S. and questions why the public should expect a different result at the PolyMet site. “And all those other places with problems are typically in dry climates. Here it’s wet. It’s the water and air that make the problem,” said Daub.

Gietzen says she thinks such concerns will be addressed in the EIS, and she doesn’t expect a big political fight over the project. “There’s a lot of technical information that will come out. There will be multiple alternatives and each one looks at ways to mitigate or avoid impacts,” she said. “We know these metals are going to be mined someplace,” added Gietzen. “Why not do it here, where we know it will be done right?”

Metals price recovery improves economics

While environmental effects are one factor in the success of PolyMet’s proposed mining operation, economic factors will likely make or break the project. Little more than a year ago, metal prices were at record highs, but those prices slid sharply as the world economy tumbled in the wake of the global financial crisis. Nickel prices, for a time, dipped below the $4.53 per pound cost of production target determined by PolyMet, while copper dipped as low as $1.30 a pound, or just above the $1.05 cost of production cited by the company.

But metal prices have recovered substantially since their winter lows and most were trading well above the levels necessary for profitability, according to PolyMet officials. As of Wednesday, copper was trading at about $2.80 per pound, while nickel had improved to the eight dollar range.

PolyMet Mining, EIS