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Firmness In The Right; by Mike Hillman

During the last local election, the candidates running for a seat on the town council were asked the question about where they stood on the issue of sulfide mining in Northeastern Minnesota.  I listened as the other candidates conducted to what amounted to a mini debate with themselves that placed each firmly, and safely, on either side of the issue:  On one hand the region was in an economic slump and needed almost any jobs it could get.  Having the opportunity to mine the second largest undeveloped reserved of copper and nickel in the world would almost certainly bring badly needed jobs to our region.  Then most of the other candidates went on to say, that the mining had to be done in an environmentally sound way, or they were not in favor of it.  The problem was that once you found out the mining couldn’t be done in an environmentally sound way, it would be too late for our water.

Before I knew it, it was my term to address the issue of sulfide mining.  I looked out at the crowd of people gathered in Vermilion Community College Fine Arts Theater, and I noticed the school’s Wilderness Recreation Club was attending the debate.  The club had invited me to speak to them earlier that autumn, and the question of sulfide mining came up.  One of the club members asked me how I felt about sulfide mining.

My answer was simple.  I told Vermilion’s Wilderness Club that in my opinion the area could be one of two things; It could become a sulfide mining center on a scale none of us can imagine, or it can remain a wilderness recreation area proud of maintaining one of the world’s great resources of fresh water, but it can’t be both.  It was the same answer I gave at the public forum a few months later.  When I finished the debate friends told me that my stand against sulfide probably cost me a seat on the town council.  One of my best supporters asked me why I couldn’t dance on either side of the issue like the other candidates did.  I looked at her and repeated a response Senator Henry Clay told a reporter when he lost a third bid for the Presidency of the United States; Henry Clay said, “I would rather be right than be  President.”  In my case it was a seat on the city council, but I felt the same way.  If I had to lie about how I felt, and tell people something I felt was wrong, then I needed to remember what Abraham Lincoln said about maintaining; “A firmness in the right, as God gave him to see the right.” It is my firm belief that mining sulfide ore in Northeastern Minnesota, is not the right thing to do right now.

Since that time, the issue of sulfide mining has come up again.  This year mining companies are asking for the right to mine sulfide ore on either side of the Continental Divide.  Ely is a very small place, and taking a public stand on an issue like sulfide mining, is a bold step, which many small town people aren’t willing to do, but people need to take a stand.

I don’t know if I am going to be a candidate in the next election or not, but this week someone reminded me, that if I wanted a seat on the town council come 2011, that I had better amend my stand on sulfide mining, or my next to the last place finish in the last election, would be looking pretty good come the next one.  What could I say?  I told him, that I would rather be right, than on the town council.  I then went on to say that I would make an effort to find a reason to support sulfide mining.

After months of looking for that silver lining the only positive things I can tell you is that sulfide mining would bring jobs to the area.  The biggest positive I could say in favor of opening a Pandora’s  Box full a noxious chemicals is that we haven’t started mining yet.  Sulfide mining is a Faustian bargain that will have lasting effects to our area’s water system, as well as it’s tourism, and retirement economies.  Once started, sulfide mining will impact the area for hundreds of years.  The small window of economic prosperity derived from sulfide mining, isn’t worth it.  Pro mining people tell me that they are sure we can mine safely here in Northeastern Minnesota, and my response to them is that if that were the case, it would be the first time in history that any sulfide mining company has ever been able to measure up to the promises they made, before they turned areas all over the world into sulfuric cesspools.  Show me one good example of how you can pulverize the rock, process it through vats of cyanide, take twenty pounds out of every ton of rock processed, leaving nineteen hundred and eighty pounds of sulfurous sludge, and not have it impact the area’s three major water sheds.  Maybe we should let the mining companies have a chance to develop the largest undeveloped field of copper and nickel in Africa, before we turn them loose in Northeastern Minnesota, so they can show us how they have mastered the sulfuric acid problem, before we trust them with all our clean water.

Number of impaired rivers and lakes up significantly since 2008 – Non Ferrous Mining Will not Help!

Impaired Lakes and Rivers in Minnesota up significantly since 2008.  At a time when we should be reducing the number of impaired Lakes and Rivers the State in considering adding a major toxic polluter in Non Ferrous Copper Nickel Sulfide Rock Mining.  To improve the State of Minnesota’s biotic community we are moving in the wrong direction fast.

Minnesota’s Impaired Waters and TMDLs

Impaired Waters


2010 Draft List of Impaired Waters

Impaired Waters Viewer

Statewide and Basin Assessment Maps

2009 Presentation

Section 303(d) of the Clean Water Act requires states to publish and update a list of waters that are not meeting one or more water-quality standards. The list, known as the 303(d) Total Maximum Daily Load (TMDL) list, is updated every two years (the next list will be approved in 2010). Following assessment of water quality data and an extensive public participation process, the draft TMDL list is submitted to the U.S. EPA for final approval.

Minnesota’s 2010 draft TMDL list contains 1,774 impairments on 388 rivers and 647 lakes. Minnesota’s 2008 list contained 1,475 impairments on 336 rivers and 510 lakes. The 2010 TMDL list contains target schedules to address listed waters through TMDL projects.

As noted above, the 2010 draft TMDL List contains 1,774 impairments. This is the list for which TMDL pollution reduction studies are required. But this is not the complete list of all impaired waters. The Inventory of impaired waters includes those needing a TMDL plan as noted above and those for which plans has already been developed and approved by US EPA. The Inventory also includes waterbodies that are naturally impaired, such as the arsenic exceedances in the Red River of the North.

While the draft 2010 TMDL List has 1,774 impairments, the Inventory of all impaired waters contains 3,049 impairments. Waters in the Inventory of impaired waters will remain there until they meet water quality standards.

2010 Draft TMDL List

Draft 2010 TMDL List (1,774 total)

Draft 2010 Total Listings by Parameter, 1774 total

Impaired Waters Maps

Statewide

Statewide

Basin

Meetings and Events

The MPCA held seven public information meetings. The following presentation was given at each meeting.

Date

Location

Time

Monday, Sept. 28 MPCA Board Room 1-3 p.m.
Tuesday, Sept. 29 Detroit Lakes conference room 1-3 p.m.
Wednesday, Sept. 30 Brainerd MPCA conference room 1-3 p.m.
Thursday, Oct. 1 Duluth MPCA conference room 1-3 p.m.
Monday, Oct. 5 Marshall MPCA conference room 2-4 p.m.
Tuesday, Oct. 6 Blue Earth Public Library 1-3 p.m.
Wednesday, Oct. 7 Rochester MPCA conference room 1- 3 p.m.

TMDL List Archives

2007-Franconia Minerals Appoints William C. Brice, Ex Director of MN DNR Division of Minerals, As Director of Government &Amp; Community Relations

I’m certain there is nothing illegal here,  “They” wouldn’t be THAT bold.  But, am I the only one that sees a MAJOR conflict of interest here.  The DNR is supposed to be accomplishing the Greater Good for the people of Minnesota.  We taxpayers paid for Mr. Brice’s services and educated him in the ways of Minnesota mining politics, “science” and shenanigans and then LET him be hired by a mining company.  Seems to me this is very significantly worse than “double dipping,”  it’s a double duping of the Minnesota Taxpayers.

Franconia Minerals Appoints William C. Brice As Director of Government &Amp; Community Relations
Posted on: Tuesday, 6 November 2007, 15:00 CST
Franconia Minerals Corporation (TSX VENTURE: FRA) is pleased to announce the appointment of Dr. William C. Brice as Director of Government & Community Relations, effective immediately.
Prior to joining Franconia, Mr. Brice spent 36 years with the Minnesota Department of Natural Resources (MN DNR), including 19 years as Director of the Division of Lands & Minerals, where he had principal responsibility for the granting of environmental and mining permits throughout the state. He also served the MN DNR as Chair of the Senior Managers Council; Acting Administrator of the Bureau of Real Estate Management; and prior to his appointment as Director, was the Assistant Director, Division of Minerals; and, Manager of Environmental Services, Division of Minerals.
With professional registrations as an Engineer and Geoscientist, Mr. Brice also holds a Ph.D. in Mineral Resources Engineering, from the University of Minnesota, specializing in environmental design, law and economics. He has written numerous articles on environmental concerns, mineral leasing and regulatory issues, which have been published in conference proceedings, agency reports and technical magazines. His previous work includes a copper-nickel resource planning project for the State, drafting of Minnesota’s mineland reclamation permit-to-mine rules as well as the preparation of several Governor’s mining policy recommendation reports.

“We are extremely pleased to have Bill joining us as we approach the next critical phase of permitting for our Birch Lake Project in the Duluth Complex of Northern Minnesota,” said Brian Gavin, Franconia’s President and CEO. “He brings an incredible depth of first-hand knowledge and experience about both the permitting process – including the most effective ways of fulfilling the state’s demanding environmental and regulatory requirements – as well as dealing with complex community issues.”
Franconia Minerals Corporation trades on the TSX-V under the symbol FRA. (For additional information see www.franconiaminerals.com.) Franconia currently has 58,024,744 shares issued and outstanding.
Brian Gavin, President and CEO
FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential. These properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.
TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: In Canada: Franconia Minerals Corporation (Toronto) Greg Taylor (416) 605-5120 Email: gtaylor@franconiaminerals.com  Franconia Minerals Corporation (Vancouver) Farah Alibhai (604) 731-7340 Email: info@franconiaminerals.com Website: www.franconiaminerals.com  In the US: Douglas Sherk (415) 896-6820 Email: dsherk@evcgroup.com
SOURCE: Franconia Minerals Corporation

Source: MARKET WIRE

Cool Clear Water; by Mike Hillman

One of the things we take for granted in Northeastern Minnesota is our water.  I was born in Ely 57 years ago, and have lived most of my life in Ely.  I spent time away at college, and worked ten years at a taconite mine, on the Mesabi Range, but other than that, Ely has been my home.

I made my first canoe trip into the Quetico-Superior with my father and Joe Seliga, when I was a boy, and over the years, I have traveled many miles through the canoe country.  The last trip I made this past September, my partner prevailed on me to use a water purifier to ward of the beaver virus.  That was the first time I ever used such a device.  I never had beaver virus, and I didn’t get it this time, but that’s the only thing I worry about when I drink the water.

Drinking lake water isn’t anything strange to people up here.  If you live in Ely, like I do, a person drinks lake water every day.  The City of Ely pumps its water from Burntside Lake.  We used to get out water from Shagawa Lake, but so many logs were driven through the lake, on their way either to the saw mills in Winton, or the mines in Ely, that the lake became polluted from all the extra nutrients added to the water.  Shagawa Lake developed an algae problem that persists to this day, when the lake, “Greens Up”, during the warm summer months.  They moved the pump house to Burntside Lake in 1931, which has been the source of Ely’s water ever since.

The first time I had any idea that we had something special, was back in 1971.  I was working on Moose Lake running a canoe base, when I noticed a group of people standing on the end of our old wooden dock, looking down into the water.  I couldn’t help myself.  I needed to satisfy my curiosity, so I walked over to see what they were looking at.  I looked down, and it was the same bottom I had looked at all summer.  I asked them what they were looking at.  The people told me, they were from Ohio, and had never seen the bottom of a lake before.  It was a revelation for me.  They were heading north into Canada.  I smiled, and told them, that they hadn’t seen anything yet.

Over the years, we have gotten better at sampling the water in the lakes and streams around the state, and many of those lakes we monitor are here in Northeastern Minnesota.  At first people were surprised at some of the not so nice things they were finding in our water, and many people wondered how they got there, even though there were no direct sources to blame.   Apparently, mercury from faraway places had fallen with the rain and snow.  The DNR had to place warnings for people not to eat too much fish.  Things aren’t bad enough to keep me away from a good dinner of fresh caught walleye. But, we need to know, that when pollution is permitted to enter the atmosphere in places far away from places like our lakes, the wind carries it here and deposits mercury where it isn’t wanted.  But now those concerns seem pale to an even greater danger.

This year the  State of Minnesota’s DNR is facing some very important questions regarding sulfide mining, and the detrimental effects that mining would have on our water, that would make current problems seem insignificant by comparison.  With growing demand across the nation and the world for clean fresh water, the citizens of the entire country and concerned people across the world need to contact the Minnesota Department of Natural Resources and let them know that they don’t want to see short sighted economics put such a valuable resource as our water into jeopardy.  If we start mining sulfide ore here in Northeastern Minnesota, it isn’t a question of if there’s going to be damage to our water, it’s more a question of just how bad the damage from things like cyanide and sulfuric acid and heavy metals will be.

“The Greatest Good for the Greatest Number”…Theodore Roosevelt…how about for Minnesota?

Theodore Roosevelt would probably have seen our struggles with the pollution from Copper Nickel Mining somewhat differently than Iron Range Politicians in Minnesota, both quotes are “spot-on”

“The ‘greatest good for the greatest number’ applies to the number within the womb of time, compared to which those now alive form but an insignificant fraction. Our duty to the whole, including the unborn generations, bids us to restrain an unprincipled present-day minority from wasting the heritage of these unborn generations.  The movement for the conservation of wild life and the larger movement for the conservation of all our natural resources are essentially democratic in spirit, purpose and method.”

When they call the roll in the Senate (Congress or State Legislatures), the Senators do not know whether to answer “Present” or “Not guilty.”

Roosevelt was reviled in his day by many for his protection of fish, wildlife, forests and American antiquities. His critics charged him with locking up timber and mineral resources on federal land that would best be consumed immediately.  Sound familiar?  We sure could use a few Roosevelt, long-term thinkers and doers in Minnesota these days.

“Evaluate the gabbro deposits for amphibole asbestos fibers”

We received this email from William Rom, the son of Bill and Barb Rom of Ely, MN who “invented” “Canoe Country” shortly after WWII, creating Canoe Country Outfitters, a thriving wilderness outfitting business which is still active in Ely today…

“Good luck on this.  The sulfur-containing residues from copper-nickel mining could best be compared to hard-rock mining communities out West.  At Silverton, CO, where there were hundreds of lead-zinc-silver-gold mines from the 19th century, the rivers still run orange.  Silverton is now an “extreme” ski area with one chairlift and back country guides to lead you to the best bowls.  My daughters, Nicole and Meredith, and I skied it and enjoyed the bowls only to come to the river just before the road.  We crossed on narrow snow bridges being careful not to step into the orange water where our ski back country guides said that the “acid” would ruin the bottoms of our skis.  Imagine trying to drink the water-and this is more than 100 years after the mining companies left!

Any mining on the South Kawishiwi will have to carry all of the ore outside of the BWCA Watershed and preferably process the ore in Duluth or elsewhere.

Particulate air pollution will still be a problem.  The University of Minnesota Public Health School will also have to evaluate the gabbro deposits for amphibole asbestos fibers.

Best,

Bill

PS. See Canoe Country Wilderness on Amazon.com William N. Rom, MD, MPH Sol & Judith Bergstein Professor of Medicine and Environmental Medicine Director, Division of Pulmonary and Critical Care Medicine New York University School of Medicine”

Cliffs Cited for Extensive Minnesota Iron Mining Pollution

Three groups today announced their intent to file suit against Cliffs Erie, a subsidiary of Cliffs Natural Resources, for ongoing water pollution from previous taconite iron mining at three sites on Minnesota’s Iron Range.  PolyMet Mining Co. plans to utilize two of the sites in order to dispose of wastes from its proposed metallic-sulfide NorthMet project.  As part of a purchase agreement, Cliffs would maintain a roughly 7% stake in the project.  The other Cliffs site, at the old Dunka Mine, is closer to Franconia Minerals and Duluth Metals’ proposed sulfide projects.

A news release issued by the Center for Biological Diversity noted that, “according to Cliffs Erie’s own monitoring reports, there are numerous ongoing violations of water-quality laws relating to management of the former LTV tailings basin. PolyMet’s proposal for its copper-nickel mine is to pile its own tailings waste on top of those from a former taconite mine that are still polluting.”

The Center for Biological Diversity, Save Lake Superior Association, and the Indigenous Environmental Network filed a formal notice letter today that acts as a “prerequisite to filing a citizen enforcement action under the Clean Water Act.”  The Save Lake Superior Association, a grassroots citizen group, proved instrumental in holding the Reserve Mining Co. to account for dumping iron mining waste into Lake Superior from 1955 into the 1970s.  The pollution introduced asbestos-like material into the lake and harmed fishing in the area.

“Before the state even considers the approval of a new wave of mining in northeastern Minnesota, it should first require the mining companies to clean up the pollution from past taconite mines,” said Marc Fink, an attorney with the Center for Biological Diversity. “As we all learned as kids, you should clean up one mess before making another one.”

The LTV basin, located six miles north of Hoyt Lakes, was used for taconite tailings from the 1950s until 2001. The unlined basin is the source of numerous seeps and discharges of polluted wastewater into groundwater and surface waters, which eventually reach the Embarrass River.  For the proposed NorthMet mine, PolyMet proposes to process more than 225 million tons of ore at the LTV processing facility, and use the same LTV tailings basin already known to be leaking.

“While past mining has already polluted these waters, the proposed heavy metals mining would bring severe new threats of pollution to these waters, which ultimately flow into Lake Superior at the Duluth harbor,” said Le Lind of the Save Lake Superior Association. “This new threat includes sulfuric acid runoff and higher levels of mercury in waters that are already impaired.”

In addition to the LTV site, the groups intend to file suit to stop ongoing pollution at the Dunka mine site, which is close to where Duluth Metals has plans for a copper-nickel mine adjacent to the Kawishiwi River, and where Franconia Minerals proposes a copper-nickel mine at the bottom of Birch Lake. Both the Kawishiwi River and Birch Lake flow into the Boundary Waters.

“These are historic tribal lands where the tribes retain treaty rights, and many tribal members are deeply concerned about additional pollution to fishing streams and sources of wild rice,” said Marty Cobenais of the Indigenous Environmental Network.

Comments on the Blog

Thank you for your comments and encouragement.   We’ve gotten so many comments of encouragement that it would block the “Posts” to post them all, when they only encourage and compliment (don’t get me wrong those are much appreciated).  We will however post all content related to the topic of Copper Nickel Sulfide Mining.  Also, we are still waiting for proof of the process and environmental safety of such mining.  So far no one has come forward to offer anything other than the promises and selling points directly from a less than stellar industry, those who would profit most from the extraction of Minnesota’s mineral resources.

Thanks again for your comments and please keep them coming.  Love to hear from you.

rw

Sulfide mining should have no place in Minnesota’s lake country

First posted on MPR News  by Christopher Loch   January 11, 2010

The media need to start telling the whole story about newly-proposed mining projects in Northern Minnesota. The public should know about how mines such as those proposed by the Canadian company PolyMet will affect the Boundary Waters Canoe Area Wilderness (BWCAW) and other natural areas and resources in Minnesota.

These mining projects are both economically toxic and environmentally unsound.

Environmental damage from such mining will be huge and irreversible. The type of mining currently being considered in Minnesota extracts precious metals like copper and gold at the expense of our precious waters and other natural resources.

Such Minnesota traditions as iron and taconite mining are totally different from the sulfide mining now under consideration. Sulfide mining has never been done in Minnesota before, and for all practical purposes is banned in neighboring Wisconsin due to pollution concerns.

Sulfide mining exposes sulfur-bearing soil and rocks to air and water, resulting in the formation of immense amounts of sulfuric acid. This in turn causes heavy metal and sulfuric acid pollution in the surrounding watershed (ground water, streams, rivers and lakes in the area, in this case including Lake Superior). There would be massive fish kills and dead bodies of water with no life in them at all, among other damage.

This is not hypothetical. It’s guaranteed. Everywhere that sulfide mining has been done it has resulted in irreversible environmental harm. Once the sulfur-rich soil and rock is disturbed, the process of leaching will begin, and it will continue essentially forever. Let me repeat: forever. Any attempt at cleanup would have to go on forever also, costing the taxpayers large sums of money in perpetuity.

Take for example the Asarco Mine in Butte, Mont. It is now an EPA superfund site that requires costly and perpetual water treatment due to sulfide mining. And there are many more examples. In fact, the EPA has reported that sulfide mining is the single largest source of toxic pollution in the United States.

Reputable scientists dispute claims by the sulfide mining industry that new technologies can contain or prevent the pollution caused by sulfide mines.

Meaningful cleanup of such pollution is impossible. We are dealing with a gigantic, porous chunk of the earth. Landfills and other pollution storage caches have all been shown to leak due to natural processes such as tremors, burrowing animals, plant roots, chemical reactions and more. So containment is out. And this kind of mess can never be “cleaned up” in any real sense. The law of diminishing returns promises that some hard to reach areas of pollution will be too expensive to clean up. Finally, implicit in the concept “cleaned up” is the idea of an end date at which the pollution will be gone. Perpetual water treatment is by definition never finished.

The cost of any perpetual pollution mitigation (however imperfect) would be astronomical. It is quite possible that in our new economic reality, politicians would not raise taxes to pay for the cleanup, and thus it would never be undertaken. And there is no reliable way to ensure the companies will be held accountable. Even if a law were passed to do so, that law would be unenforceable if the companies went bankrupt.

It’s happened before. Another Canadian company, Dakota Mining, filed for bankruptcy after a subsidiary created an environmental nightmare near Deadwood, S.D., in the 1990s. The state collected the bond that the firm had posted, but the amount was nowhere near enough to cover cleanup costs.

All this should be enough to stop debate and prevent any sulfide mining from ever happening here. But there is more to consider. Nine billion dollars is spent annually in Minnesota on lake-based tourism. That is a significant part of the state economy, and in some areas its contribution is crucial. Just ask Jane and Steve Koschak, who own a family resort on Birch Lake, where sulfide mining is proposed. They worry that tainted waters could harm their business. Already, noise from test drilling in the middle of the lake is affecting their previously quiet vacation area.

You can hear from the Koschaks and others living in areas that will be affected by the proposed sulfide mining in a short documentary called “Precious Waters” at www.preciouswaters.org. Residents there were at first largely supportive of precious metal mining, but they have turned against it after finding out that it’s not like iron mining.

What will happen to the Boundary Waters if this mining happens? If its pristine waters are tarnished by pollution, large numbers of tourists who come from all over the world to canoe there would likely stop coming. If the mining begins, not only chemical pollution but industrial noise pollution will find its way into the BWCAW. Even if expensive water treatment were undertaken (forever) to try to remedy the water pollution, it would be hard to sell the BWCAW as pristine given the mining noise and large industrial-looking water treatment facilities nearby.

Beyond the Boundary Waters, the wider lake-based tourism economy depends on tourists’ perception that Minnesota’s lakes are clean and healthy. If sulfide mining undercuts that perception, tourism near the mines will surely decrease. But I believe it will also affect tourism for lake areas in Minnesota that are nowhere near the BWCAW and mining sites.

Think about it. Have you ever decided not to vacation somewhere because of one single negative thing you heard about it? Non-Minnesotans don’t know much about our state. They know a few city names and a few amenities perhaps. They usually have no idea how far one place is from another. So major pollution of the cleanest waters in Minnesota will likely affect overall perceptions of all of Minnesota’s waters.

Additionally, if the many mines that are proposed go forward, “up north” will be scarred with monumental new piles of rubble and pot holes that are miles across and hundreds of feet deep where scenic natural beauty once was. Will that have an effect on tourism?

The lake-based tourism economy and the tens of thousands of jobs it generates dwarf any benefits that could possibly come from this un-Minnesotan type of mining.

Sulfide mining in Minnesota just doesn’t add up, economically or environmentally. Any amount of economic benefit will be short lived and shared by only a few. Whereas all Minnesotans will lose the pristine and majestic nature of the BWCAW and other precious waters up north. Instead of being compensated for that terrible loss, we will be paying taxes to do water treatment up there until kingdom come.

Ernest Oberholtzer and others saved our precious “up north” once before by preventing Edward Backus from building seven dams there. Those opposed to the dams included many farsighted businessmen. Now as then, the choice isn’t between serving business and protecting the environment. Many folks go up north and to the BWCAW with buddies they don’t necessarily agree with, politically or otherwise, but together they share the values that have kept these lakes among the cleanest in the world.

“Up north” can be saved again. It will take some hard work by citizens and some well researched and balanced coverage by the media. People should call their federal, state and local representatives, and tell them not to fall for the fallacy that sulfide mines will help the state economically. And they should remind the DNR that its job is to protect the natural resources of Minnesota, not auction them off.

Christopher Loch, Minneapolis, works as a printer and often vacations in the BWCAW.

Good News for all Minnesotans and BWCAW visitors and supporters – Cash Assurances

It was announced today that Duluth Metals, the company wanting to mine 6000 ft. below birch lake on the edge of the Boundary Waters has signed an agreement with a Chilean company called Antofagasta.  This is great news for all Minnesotans and BWCAW visitors and supporters.  With this announcement comes financial commitments from Antofagasta:

Proper financing for Duluth Metals should now permit adequate cash assurances (damage deposit) to be paid to Minnesota for any environmental problems caused by their mining.  This should also influence our legislators to require cash assurances from PolyMet.  If there isn’t enough money in the “till” to cover any “OOPS” within their intended “Doing it Right” promise then there isn’t enough money to “Do it Right!”  And, if they can’t come up with that level of financing and commitment and cash financial assurances they shouldn’t be here.

  • Antofagasta will provide US $130 million in direct funding to the project for its 40% interest in the joint venture;
  • Thereafter, if Antofagasta elects to proceed with the further funding of the project and to maintain its 25% Option, Antofagasta will disproportionately fund 65% of the joint venture expenditures and Duluth will fund 35%;
  • Additionally, Antofagasta has agreed to provide Duluth with up to US $30 million in additional funding to cover Duluth’s share of subsequent project expenditures, which will ultimately be repayable in cash, Duluth shares or offset against the 25% Option exercise price;
  • Antofagasta will also subscribe to a private placement of Duluth shares for approximately US $11.6 million;
  • The combination of the initial funding commitment, private placement and incremental funding from Antofagasta ensures that up to US $ 227 million of funding will be available to advance the project with Antofagasta involvement, before any additional funding would be required from Duluth;
  • Antofagasta has also committed to pursue project financing, on a common basis with Duluth in respect of the large development capital cost financing requirements of the project.

With Antofagasta’s capitalization  of 16 billion there is now absolutely no reason or excuse that Minnesota’s politicians could conjure to prohibit full cash assurances to flow into the Minnesota coffers for any environmental damage caused by Duluth Metals and to insure a proper, clean, pollution free shut down when they are done with us.