Proposed NewRange copper-nickel mine in Minnesota suffers fresh setback on top of years of delays

MINNEAPOLIS– The proposed NewRange copper-nickel mine in northeastern Minnesota suffered another setback this week when an administrative law judge recommended that state regulators not be allowed to reissue a crucial permit for the long-delayed project.

Administrative Law Judge James LaFave said in a ruling late Tuesday that the design for the mine’s tailings basin will not adequately prevent water pollution. So, he said, the Ministry of Natural Resources should not reissue the key “mining permit” for the project.

The next step is up to the DNR, which can accept or reject the judge’s recommendations or impose new conditions on the reissue of the permit.

The proposed $1 billion mine has been delayed by a series of court rulings and administrative actions since regulators issued the original mining permit and other necessary permits in 2018 and 2019. The Minnesota Supreme Court in 2021 ordered the DNR to gather more evidence on whether mining the mine’s tailings pond would keep pollution down, leading to a five-day hearing before a judge in March.

The project’s proposed open-pit mine near Babbitt and the processing plant near Hoyt Lakes are a 50-50 joint venture between PolyMet Mining and Canada-based Teck Resources. The project was renamed NewRange Copper Nickel in February, but is still commonly known as PolyMet. It is planned to be Minnesota’s first copper-nickel mine, but has long been blocked by setbacks from the courts and regulators. Swiss commodities giant Glencore has increased its stake in recent months to become the sole owner of PolyMet Mining.

“It is time for the governor and Minnesota state agencies to take a hard look at whether it is time to pull the plug on the PolyMet mine project.” Paula Maccabee, attorney for the environmental group WaterLegacy, said in a statement.

NewRange spokesman Bruce Richardson said Wednesday that the company was “reviewing the ruling and evaluating our options.” The company says it can produce copper, nickel and platinum metals needed for the clean energy economy without harming the environment while creating jobs for northeastern Minnesota.

Other environmental groups also welcomed the ruling. They say the risks of acid mine drainage from the sulfide-bearing ore beneath northeastern Minnesota pose unacceptable risks to the environment and human health.

The question in this case was whether the bentonite clay lining that NewRange plans to use to seal its tailings pond could adequately retain the reactive mine waste, known as tailings, and keep out oxygen and water. The judge concluded it was not a “practical and workable” way to make the residues non-reactive or to keep water out of them over time.

“The crux of the issue is simple: will the method of containing the waste work? The evidence is clear and the judge’s ruling is clear: No,” said Chris Knopf, executive director of Friends of the Boundary Waters Wilderness.

Several other major obstacles to the project also remain unresolved. The Minnesota Supreme Court ruled in August that the Minnesota Pollution Control Agency improperly granted the key water quality permit, with state regulators not only ignoring concerns from the federal Environmental Protection Agency but also trying to hide EPA warnings from the public. The U.S. Army Corps of Engineers revoked a wetland destruction permit in June because it did not meet water quality standards set by a sovereign downstream tribe. Also in June, the state Supreme Court reinstated environmentalists’ appeal of the project’s air quality permit.

“This is yet another rejection of the permits granted to PolyMet and should be the final nail in the coffin of this failed proposal,” said Kathryn Hoffman, CEO of the Minnesota Center for Environmental Advocacy.

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