Feature
It’s been more than a decade since mineral exploration began on the Yellow Dog Plains,
and several years of intensely personal battles raging between parties involved. Is this about one company and one mining site? Or does the fate of the Eagle mining project have bigger ramifications for the Upper Peninsula?
This Battle of Mine
by Michael Murray
The meeting starts in fifteen minutes, and parking spaces are scarce. It’s just another hearing in a long line of hearings, one more skirmish in a war that already has lasted several years. On the agenda tonight is one topic: a road.
Of course, it’s not just any road. This road—the Woodland Road—will begin in Humboldt Township, east of M-95 along US-41, near an ore-processing mill. It will head north, through wetlands and over rivers and around lakes. It eventually will connect with County Road AAA southwest of Big Bay. The Triple-A road will lead to a mine along the Salmon-Trout River in the northwest corner of Marquette County. The proposed mine site holds a mineral deposit worth billions of dollars.
So this hearing at Westwood High School in Ishpeming Township is about a road—owned in part by Kennecott Eagle Minerals Company—that will connect a mine at one end with a mill at the other. The stated purpose of the meeting is to hear public comment on the road, but it’s also about the mine. As one speaker puts it, “This is a haul road. Without the mine, there’s no road.”
Each side in the fight believes the future of the Upper Peninsula is at stake. Supporters stand up in the hearing and talk about the history of mining in the U.P. “Mining is our heritage. It’s the backbone of our community.” They talk about the promise of jobs. “Michigan has the highest unemployment in the nation. We need these jobs.” Opponents stand up and talk about a different course for the region. “Mining is not our future. Water is.” They say Kennecott’s parent company will not be a good neighbor. “Rio Tinto exploits economic turmoil.”
It’s one hearing among many, one step on a long journey.
The promise of jobs
Kennecott Minerals, a company based in Utah, began exploring the Upper Peninsula in the late 1990s. Kennecott is a subsidiary of the London- and Melbourne-based Rio Tinto Group, one of the four largest mining companies in the world, a corporation with mineral interests on six continents. Exploration of the Yellow Dog Plains revealed a mineral deposit containing 300 million pounds of nickel and 250 million pounds of copper. After the discovery of these minerals and years of assessments, Kennecott purchased or leased 1,600 acres in the area with the intention of opening a mine in Michigamme Township.
The purpose of this endeavor, named the Eagle Project by the newly formed Kennecott Eagle Minerals Company, is to extract the valuable minerals from sulfide rock for industrial use. Eagle would be the only primary nickel mine operating in the United States. Nickel is used in everything from batteries to cell phones, from joint replacements to airplanes. The market for nickel is wide, and the Eagle deposit could be worth $3 billion to $6 billion.
In public documents, Kennecott describes the project as a “small underground mine,” encompassing about 120 acres of surface area. The company plans to construct facilities above ground including a $10 million water-treatment plant, offices, truck loading and washing areas, and a power-generating station. An underground ramp would create access to the ore. Processing would take place off-site, at the Humboldt Mill about twenty-three miles to the south. The ore body itself—a six-acre deposit of host rock and minerals—is located directly below a bend in the Salmon-Trout River, seven miles southwest of Big Bay.
Kennecott’s promotional material indicates the company plans to invest more than $300 million in the project, which could create more than 100 full-time operations jobs, more than 100 construction positions and an additional 300 to 500 indirect jobs. The company has stated that at least seventy-five percent of its workforce will come from the local community.
“Because mining has been the cornerstone of the U.P.’s economy throughout the region’s history, the technical skills and knowledge needed to operate a twenty-first century mine, such as Kennecott is planning, are available locally,” said Jon Cherry, the general manager of Eagle.
The company’s timeline includes three years for construction, six to eight years of operation, and two years for reclamation.
Many local business organizations and municipalities endorsed the project, won over by the promise of jobs and tax revenue. For the past forty years, John Olson has been supervisor of Michigamme Township, site of the proposed Eagle mine. He said many township residents have a background in mining, most recently at Cliffs Natural Resources’ Empire and Tilden operations.
“The people of Michigamme Township support this mine,” he said. “They know what it’s like to get a paycheck and pension from the mine.”
Olson, a retired miner, said Kennecott has kept his township informed of its plans throughout the exploration and planning process.
“Mr. Cherry came and met with our board immediately upon finding minerals [at the Eagle Rock site],” Olson said. “He talked with us long before anything was public, and our township board was supportive from the beginning.”
Joe Derocha became supervisor of Humboldt Township in December 2008. During his first meeting as supervisor, the township issued a letter of support to Kennecott.
“They’ve been very responsive throughout this process,” he said. “The first plans for the Woodland Road showed it passing through a residential zone, and we said that wouldn’t be acceptable. They made the change immediately and moved the road.”
Derocha’s township is the site of the Humboldt Mill, which will process ore from the Eagle mine. He said residents of Humboldt are eager to see the project move forward.
“There were some misinformed people early on, but at least ninety-five percent of residents are for this,” he said. “We have people who want these jobs and are qualified to do these jobs.”
Four years ago, in February 2006, Kennecott Eagle submitted applications to the state Department of Environmental Quality for permits to develop the mine. The application process included air- and water-quality assessments and submission of the company’s mining plan. Cherry said, “The process of applying for and receiving permits is a major step in Kennecott’s project feasibility process.”
The move also was a major step in energizing the opposition.
‘The most thorough review’
In the months after Kennecott submitted its application, several environmental advocacy groups and thousands of individuals mobilized to oppose the company’s plans. According to figures provided by the National Wildlife Federation, more than 5,000 Marquette residents signed petitions opposing the mine, and about ninety percent of residents in Powell Township in northern Marquette County went on record opposing Kennecott’s plans.
Kennecott’s permit application was the first in Michigan to fall under Part 632 of the Natural Resources and Environmental Protection Act. Part 632 deals with nonferrous metallic mining and reclamation and was enacted in December 2004. (By comparison, Cliffs’ iron mines in Marquette County are regulated under the previously existing law, Part 631.) According to the DEQ’s Web site, a permit can be granted “only if the applicant demonstrated that the mining operation will not pollute, impair, or destroy the air, water, or other natural resources or the public trust in those resources.”
Opponents of the mine argued that Kennecott’s application failed to meet that standard, particularly as it related to acid rock drainage, also known as acid mine drainage. The nickel and copper that the company wants to extract is found in rocks containing chemicals called sulfides. If sulfide rock is exposed to air and water over a long period of time, sulfuric acid can develop and drain into nearby water bodies and groundwater.
Experts say mining sulfide rock can be done safely if the proper steps are taken.
“If sulfide gets in contact with water and air, acid can be produced,” Steven Wilson, supervisor of the minerals and mapping unit of the Michigan Geological Office, said recently in a published news report. “If you were to take any of these ores and bring them up and lay them at the surface, you’re not immediately going to have acid drainage coming from them. You could pick the ore up and handle it and you wouldn’t have to worry about it. Now over time, drainage can happen.”
Kennecott plans to protect against acid drainage by backfilling the holes it digs with cemented rock. The National Wildlife Federation said this plan is unacceptable: “The problem is that cemented rock is not impermeable; it is a loose mixture of cement and rock paste that will separate and be permeable. Worse, the rock Kennecott proposes to use is acid-generating waste sulfide rock excavated from the mine. The backfill itself would generate acid mine drainage as it oxidized over time.”
Despite the concerns brought up by mine opponents, the DEQ granted preliminary approval in January 2007 and established a schedule for public hearings in anticipation of closing the process within three months.
But DEQ Director Steven Chester suspended the process on March 1 after he was notified that reports critical of the mine had been written by a DEQ consultant and then suppressed by agency staff. The consultant, David Sainsbury of Itasca Consulting in Minneapolis, had criticized Kennecott’s plans to avoid collapse of the roof of the mine, known as the crown pillar; he wrote that the company’s plans “are not considered to be defensible.” Sainsbury later characterized the analysis as technically antiquated, sloppy and equivalent to high-school level work.
“The worst-case scenario is that Sainsbury is right,” said Cynthia Pryor, sulfide mining campaign manager for the Yellow Dog Watershed Preserve. “This mine goes through, the mine collapses, people are killed, and the river goes with it.”
Michelle Halley, an attorney with the National Wildlife Federation, added: “It’s shocking to me that [DEQ] personnel have ignored expert after expert, including their own.”
After an investigation into the suppression of Sainsbury’s report, and its insertion into the public record, Chester resumed the permit process in July 2007. Public hearings were held that September, and the DEQ issued the permits in December 2007.
“This has been one of the most thorough reviews of an application ever done by this agency,” Chester said. “In the end, Kennecott’s proposal met the high standards set by Michigan’s environmental laws.”
A week after the announcement, four groups opposed to the mine—the National Wildlife Federation, Keweenaw Bay Indian Community, Huron Mountain Club and Yellow Dog Watershed Preserve—filed a contested case petition and a lawsuit against the DEQ. Halley said, “The MDEQ has issued permits that are based upon defective, inadequate and incomplete applications and are therefore illegal.”
The contested case hearing took place before Administrative Law Judge Richard Patterson the following spring and summer in Lansing. The opposition had hired veteran mining consultant Jack Parker to study Kennecott’s application. In his summary, Parker wrote, “Before it is too late, somebody must make it clear that the Kennecott application was, and still is, worse than useless—worse because it is misleading, deceitful and potentially dangerous.”
Rio Tinto, Kennecott’s parent company, responded: “Safety is Rio Tinto’s highest priority at all of our operations. We design, build and operate our facilities using industry-leading technology, methods, and practices to protect the safety of our people, the community, and the environment in which we operate.
“In developing the design for Eagle mine...we have utilized some of the foremost mine engineers in the world to address the safety and protection of humans, ecosystems and the natural environment.”
Final arguments were filed with Patterson in October 2008, and his 177-page decision in favor of the DEQ was released last August. He said Chester, the DEQ director, could affirm, change or deny the permits. Patterson’s ruling included a recommendation that the permit be allowed “with the exception that provision be made to avoid direct impacts to Eagle Rock that may interfere with the [Native American] religious practices thereon.”
Last fall, Chester asked Patterson for clarification on the rock’s legal standing as a place of worship. While awaiting this information, two major changes altered the landscape of the DEQ. In a cost-saving measure, Governor Jennifer Granholm ordered the Department of Natural Resources and the Department of Environmental Quality to combine in January 2010. Just days before the order was scheduled to take effect in the newly formed Department of Natural Resources and Environment—and less than two weeks after Chester had resigned—the DEQ bypassed Patterson and issued final permits to Kennecott.
“We feel as though the previous leadership of the DEQ rushed along the approvals before the change in leadership,” Halley said. “I hope things will be different with new leadership in place...The DEQ seemed bound and determined to approve the permits no matter what.”
Near the end?
After the DEQ decision was announced, Kennecott Eagle issued a news release declaring its intention to begin building the mine this year. Rio Tinto’s financial troubles relating to the global recession had forced the company to reduce its operations on the Yellow Dog Plains drastically in 2009.
Cherry said, “Today’s decision by the state is great news for our project and a community and region that has been anticipating the job opportunities and economic contribution our project will trigger.”
Less than a month later, the DNRE issued four permits allowing Kennecott to refurbish and operate the Humboldt Mill.
Despite these developments, mine opponents say the process is far from finished. For one thing, Halley said the opposition will appeal the DEQ’s January decision to grant final permits. The appeal process could take months.
The company also is awaiting a draft decision from the U.S. Environmental Protection Agency regarding an underground injection control program. The agency follows an eight-step process and currently is on Step 2: completeness review and technical evaluation. According to its Web site, the EPA still must make a draft permit decision; announce the decision and establish a public-comment period; accept public input by mail and at public hearings; prepare responses to comments; and issue a final decision. The decision may then be appealed. None of the parties involved knows when to expect a draft decision, and the length of the response period is not firmly established.
On another front, the Michigan DNRE must approve the proposed Woodland Road, which essentially connects the mine on the north end with the mill on the south. Public comment was scheduled to close in February. After the DNRE announces its decision, either side could appeal.
Even if Kennecott is granted ultimate approval in each of these outstanding issues, it could be years before mine construction begins.
After Eagle
Opposition leaders know that the Eagle Project is just the first of many potential applicants for Part 632 mining permits in the U.P. “There’s a real potential for the western Upper Peninsula to become a mining district,” Pryor said. “There are a lot of people out there who want to make that happen.”
A report published in the Detroit News last fall stated that Kennecott, which spends up to $5 million a year on exploration, has identified 150 U.P. sites for possible mining operations.
Several other companies have been exploring in the region as well. One of the more public examples is Aquila Resources Inc. in Menominee County. Aquila, an exploration company based in Stephenson, has teamed with a Canadian mining corporation, HudBay Minerals Inc. They have focused on a large zinc deposit near the Menominee River and intend to submit an application for a mining permit later this year or early next year.
Aquila and HudBay’s proposed mine, called the Back Forty Project, would extract zinc as well as gold, copper and silver from sulfide rock using the same process Kennecott plans to employ at Eagle. The operation in Menominee County would be a combination deep-shaft and surface mine—theoretically increasing the risk of acid rock drainage because of greater exposure to air and water.
At the western tip of the Upper Peninsula, another Canadian company has its nose to the ground. Orvana Minerals Corporation of Toronto has announced Copperwood, its copper-mining project about nineteen miles southwest of the inactive White Pine Mine. The company has mineral leases covering about 1,800 acres and plans to begin production in 2013.
Prime Meridian Resources of Calgary is pursuing at least four projects in the U.P. totaling about 23,000 acres. The largest of these ventures, the Baraga Basin Project, includes land in Marquette and Baraga counties and is in direct competition with Kennecott to find nickel and copper in sulfide rock.
Another company interested in nickel and copper mining in the region is Bitterroot Resources of Vancouver. The company’s Web site says its subsidiary Trans Superior Resources is one of the largest holders of mineral rights in the Upper Peninsula. Trans Superior owns mineral rights to 363 square miles in Ontonagon, Houghton, Baraga and Iron counties. Bitterroot also is seeking partners in an effort to mine uranium in the Jacobsville Basis on the Keweenaw Peninsula.
“Certainly companies would like to see the Upper Peninsula, northern Wisconsin and northern Minnesota become the next sulfide mining district,” Halley said. “These areas are in the bull’s-eye for future minerals development. [This process] has gained a lot of attention because of the connection to the Great Lakes. For all intents and purposes, this is the source of drinking water for the upper Midwest region.”
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