Mining Minnesota pitches for PolyMet - BusinessNorth.com

PolyMet may have completed it’s the environmental review, but advocates are still stressing the merits of the proposed non-ferrous mining project. Now, with the PolyMet entering its permitting phase, Mining Minnesota is keeping up with its efforts to inform the public about its potential benefits.

Non-ferrous advocate organization, Mining Minnesota, took that message to the Grand Rapids Area Chamber of Commerce on Tuesday morning, noting the economic potential of PolyMet as well as other non-ferrous mining projects at various stages of development.

“Minnesota is a mining state,” Mining Minnesota Executive Director Frank Ongaro said, adding that it’s the third largest mining state in country in terms of employment, GDP contributions and labor income. “What we have is an opportunity to develop the next generation of mining and double the size of the mining industry.”

Non-ferrous mineral deposits located along the Duluth Complex in northern Minnesota include copper, nickel, platinum, palladium and gold, and others. In addition to Canadian-based PolyMet, several companies have invested in non-ferrous proposals including Antofagasta, Kennecott and Rio Tinto, to name a few.

There’s good reason for that investment. The Duluth Complex holds the world’s second largest copper deposit, third largest nickel and third largest platinum deposits. More than 4 billion tons of non-ferrous minerals have been located with more deposits yet to be identified, Ongaro said.

Although the resource has always been located here, he said improved technology, increased demand and more economical mining conditions are the reasons non-ferrous mining projects are currently in development.

Further, the United States currently is a net importer of its non-ferrous mineral supply, producing only 1.2 million tons annually while consuming 1.9 million tons.

“We are import dependent on each and every one of these (metals) in some cases from countries that aren’t necessarily our friend,” Ongaro told Chamber members.

Ongaro acknowledged that while the economic benefit is clear, non-ferrous mining has been controversial. That’s due to the fact that those non-ferrous deposits are mixed with sulfides, which can create sulfuric acid when mixed with air and water.

A state with rigorous environmental standards like Minnesota, however, could serve as a model for responsible mining elsewhere, he noted.

“There’s a history of getting it right. We can be a template for the rest of the world,” Ongaro said.

Planned mitigations for the project include zero surface water discharge, a 1.5 to 1 wetlands replacement requirement, no need for additional tailings area, waste rock areas that would be lined and capped and minimal air emissions. PolyMet also will have to prove to the state that it has the financial wherewithal to deal with any potential issues – including closure. Those discussions, Ongaro said, would likely take place in the next legislative session.

While timelines are subject to change, PolyMet, which has already invested $200 million in its proposed project, could conclude its permitting process in a year. “If the stars align, next fall PolyMet could be a fully permitted operation,” Ongaro said.

Mining non-ferrous minerals here isn’t just a matter to jobs, it’s also a matter of social and economic justice, Ongaro told the Chamber. The need for non-ferrous metals is ever-increasing and will play an important role in the so-called green economy, with just a single wind turbine needing four tons of copper.

“Do you want them (non-ferrous metals) to come from a place with strong environmental standards or countries with little to no environmental regulation?” Ongaro asked. “It’s not a case of jobs versus environment. It’s a case of jobs and the environment.”

Mining is already 30 percent of the region’s GDP and non-ferrous offers the opportunity to double the size of the industry here.

It’s also an industry that offers jobs that pay better than many others. Average mining wages in Minnesota are approximately $88,850 annually, according to figures from the Minnesota Department of Employment and Economic Development. In contrast, the average annual wage for all industries is about $50,000, while the hospitality industry pays an average of about $37,000.

If currently planned projects come to fruition, they would add $2 billion annually into the region’s economy and create 5,000 jobs, according to data from the University of Minnesota Duluth. In addition, non-ferrous mining could infuse tens of millions into local and state coffers through net proceeds and occupation taxes.

Ongaro concluded with one last pitch regarding the safety of non-ferrous mining. He asked the audience to educate themselves on the science behind the proposals.

“Don’t listen to us, don’t listen to the environmentalists. Listen to the regulators.”