Metallic Sulfide Mining in Minnesota
According to the Minnesota DNR, roughly a dozen mining companies are currently exploring for nonferrous metals in Northeastern Minnesota’s Duluth Mafic Complex.[1] The Duluth Complex is the largest undeveloped nonferrous deposit in the United States and borders the Boundary Waters Canoe Area Wilderness.[2]
PolyMet Mining Corp.’s NorthMet project, south of Babitt, is the largest undeveloped nonferrous mineral deposit in the US. The company owns a 100% leasehold interest in the 4,162 acre complex.[3] NorthMet is expected to commence extraction of platinum, palladium, gold, copper, nickel, cobalt, and silver in 2008.[4]
In December, 2006, PolyMet reached an agreement with Minnesota Power to provide electricity to the project through 2018.[5]
In March, 2007, the company contracted the URS Corporation, in Denver, Colorado, as lead contractor for the project’s "Engineering, Procurement and Construction Management" (EPCM).[6]
In 2005, PolyMet acquired its mining development site and an existing crushing and grinding plant from Cliffs Erie L.L.C., a wholly-owned subsidiary of Cleveland-Cliffs Mining Co. (CCI). In December, 2006, the company purchased Cliff’s railroad connection, including a 120-railcar fleet, locomotive fueling and maintenance facilities, water rights and pipelines, administrative offices and approximately 6,000 acres adjacent to PolyMet’s proposed tailings facilities.[7]
As part of the deal, CCI acquired 7.7% of PolyMet’s common stock.[8]
CCI, which operates iron mines in Michigan, Minnesota, Canada and Brazil, is closely related to another nonferrous minerals explorer in Minnesota, Kennecott/Rio Tinto.
In May 2006, the Aitken County, MN, Planning Commission denied Kennecott a conditional use permit to explore for nonferrous minerals in the county.[9]
In 2003, CCI appointed Randy L. Kummer Senior Vice President of Human Resources. Kummer was formerly Vice President of Human Resources, Government and Public Affairs for Kennecott.[10]
Also, Joseph A. Carrabba is slated to become CCI’s CEO upon John S. Brinzo’s retirement, this year. Carrabba worked for Rio Tinto for approximately 20 years, most notably as President and Chief Operating Officer of Diavik Diamond Mines, Inc. a major producer of diamonds.[11]
In 2004, the United Steelworkers Union (USWA), in Labrador, Canada, struck against Wabush Mines (CCI) and the Rio Tinto-owned Iron Ore Company of Canada (IOC) for proposed company concessions that would eliminate jobs and increase outside contracting of work. USWA’s Ontario/Atlantic Director Wayne Fraser accused Rio Tinto of a pattern of anti-union behavior.[12]
Steelworkers at IOC’s Labrador City mine as well as at the company’s pelletizing plant and port, in Sept-Iles, Quebec, are still on strike. Fraser said, "This company is playing fast and loose with the truth and putting our members’ future livelihood [sic] at risk…for the company to simply walk away [from negotiations] shows remarkable disrespect to both the process and, more importantly, to the employees, who do not take the decision to be on strike lightly."[13]
1 Thomas, Richard, “Mining companies Eye Duluth Complex,” BusinessNorth, June 30, 2006
6 PolyMet Mining Co., "PolyMet Engages NorthMet Engineering Contractor," Press Release, March 15, 2007
8 Ibid
9 Supra, 1
12 USWA, “Canadian Steelworkers Strike Cliffs’ Wabush Mines,” Press Release, BusinessNorth.com, July 8, 2004; USWA represents roughly 190,000 workers in every sector of Canada’s economy.
13 Guzzo, Maria, "IOC Surprised by Strike Standoff; Union Places Blame on Company," American Metal Market, April 5, 2007, p.6
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