Developers of Minnesota's first commercial copper-nickel and precious metals mine say that by mid-2008, they'll be ready to begin metals production at a $380 million facility at the former LTV Steel Mining Co. near Hoyt Lakes.
Pre-engineering work, permitting and equipment acquisition are under way for PolyMet Mining Co.'s NorthMet project, company officials said Monday.
"We are very encouraged by the cooperation we are receiving from the state of Minnesota to maintain the timeline to start commercial production," William Murray, PolyMet president and chief executive officer, said in a news release. "For our part, we are putting considerable effort into planning activities leading up to the receipt of permits and through the construction phase in order to achieve the timely start of commercial production."
In January, PolyMet plans to submit detailed plans to state and federal regulators on how it proposes to address environmental issues.
Environmentalists say the project holds potential for acid runoff, which occurs when minerals that contain sulfur are unearthed and exposed to water and oxygen. The result is sulfuric acid, which can be harmful to the environment.
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"All of the environmental issues that have been raised and that are expected to be raised will be addressed," said Warren Hudelson, PolyMet spokesman. "We are committed to meeting or exceeding all state of Minnesota environmental standards."
A draft Environmental Impact Statement is under way.
A final EIS could be delivered in the third quarter of 2007.
PolyMet hopes to begin mining in mid-2008. Metal production would begin in the fourth quarter of 2008.
Meanwhile, PolyMet says it's performing about 250,000 hours of pre-engineering work.
Equipment such as an autoclave, in which the mined material would be processed, also would be ordered to coincide with the receipt of permits.
"We intend to have everything in place to go into full-blown production upon the receipt of permits," Hudelson said. "While the process moved forward, we don't intend to be marking time."
The facility's mine, about 12 miles south of Babbitt, would produce about 32,000 tons of ore per day. Processing would take place using some of the former LTV Steel Mining Co. facilities.
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PolyMet holds rights to about 16,600 acres, along with concentrating, tailings disposal, maintenance and office facilities at the former taconite plant.
Studies show the low-grade metals operation could have a life of about 38 years.
Development of the facility would require about 1,000 construction workers and create at least 400 permanent jobs.
LEE BLOOMQUIST can be reached weekdays at (800)368-2506, (218)744-2354 or by e-mail at leebloom@cpinternet.com .
