Court upholds air permit for proposed NewRange Copper Nickel mine

A view of the closed LTV Steel plant.
NewRange Copper Nickel plans to repurpose the long-closed LTV Steel taconite plant near Hoyt Lakes, Minn., to process copper, nickel and precious metals from its nearby NorthMet deposit. But several key permits the company needs to proceed have been tied up in litigation and regulatory review.
Jim Mone | AP

The Minnesota Court of Appeals has upheld a key air permit for the proposed copper mine formerly known as PolyMet, a victory for the company that’s vying to build the first mine for copper, nickel and precious metals in the state.

But the proposal remains in limbo, because one major permit the facility needs to operate has been revoked, and two others remain tied up in ongoing litigation and regulatory procedures.

The decision Monday by a three-judge panel centers around an air emissions permit the Minnesota Pollution Control Agency first granted five years ago for the project, which would be located near the Iron Range towns of Babbitt and Hoyt Lakes.

Several environmental groups and the Fond du Lac Band of Lake Superior Chippewa sued to overturn the permit, arguing that the MPCA failed to consider information suggesting that the company, now known as NewRange Copper Nickel, planned to build a much larger mine that would emit more pollution than what was covered under the air permit.

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The issue has bounced between the court of appeals, the Minnesota Supreme Court, and the MPCA for the past several years.

In a 21-page ruling affirming the permit, Judge Louise Dovre Bjorkman wrote that any future mine expansion is irrelevant, because NewRange would then have to apply for what’s known as a “major-source” permit.

“An applicant seeking such a permit is not guaranteed to secure it; full permitting review would be required,” Bjorkman wrote.

NewRange Copper Nickel spokesperson Bruce Richardson said the company is pleased with the decision.

“The Court summarized it well when it said in its order that it found the Minnesota Pollution Control Agency made ‘reflective and undisputed findings that show it carefully considered the salient problems,’ concluding that the company ‘will comply with the permit,’” Richardson said.

Environmental groups called the ruling disappointing. But they point out that several other key permits the mine needs have either been revoked or sent back to the MPCA and the Minnesota Department of Natural Resources for additional work.

“The PolyMet proposal as permitted five years ago is all but dead and three major permits have been sent back to the agencies that issued them,” said Jay Eidsness, staff attorney for the Minnesota Center for Environmental Advocacy, which also represented Friends of the Boundary Waters Wilderness and the Sierra Club in its appeal.

“It’s time for our state government to take a hard look at what the proposed mine really means for Minnesota’s environment and the health of its people,” he said.

In the years since the original permits were issued, PolyMet has entered into a joint venture with the Canadian mining firm Teck Resources to develop the NorthMet deposit. Teck is exploring the adjacent and larger Mesaba Deposit.

Meanwhile, Swiss conglomerate Glencore, which had long been PolyMet’s main investor, completed a takeover of the company last month when it acquired all remaining shares.

Environmental groups warn that the newly configured company, with access to more financial resources and a larger ore body, suggests additional potential for expansion of the proposed mine, and a greater likelihood of environmental damage.

“Copper-sulfide mining is the most polluting industry in the country and simply cannot be safely done in a water-rich environment like northeastern Minnesota,” said Chris Knopf, executive director of Friends of the Boundary Waters Wilderness.

“We will continue our legal fight and work in the Legislature to update our antiquated laws so we can protect our clean water from this toxic industry.”

But advocates for the mining project argue that modern mining methods can protect the environment. They also contend the more than billion-dollar investment would jumpstart the region’s economy and provide minerals that are needed for electric vehicle batteries, solar panels, and other technologies needed for the transition to a green economy.

“The U.S. and Minnesota have an obligation to responsibly and domestically source minerals to meet their own needs,’ said Julie Lucas, executive director of the industry group Mining Minnesota. “NewRange Copper Nickel holds the potential to be a significant contributor to our nation’s clean energy future.”