Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) has entered into an agreement with PolyMet Mining (TSX: POM; NYSE: PLM) to form the 50:50 joint venture New Range Copper Nickel to advance PolyMet’s NorthMet project and Teck’s Mesaba mineral deposit in northeast Minnesota.
Glencore (LSE:GLEN), which owns about 70% of Polymet, will retain its majority interest in the company and provide financial support to the joint venture. . The two copper projects are located near each other in the Duluth complex.
“The NewRange Copper Nickel joint venture brings together two large, well defined mineral resources in the established Iron Range mining region of Minnesota,” Teck CEO Don Lindsay said in a press release. “This agreement will help unlock a new domestic supply of critical metals for the low-carbon transition through responsible mining.”
The NorthMet project is reusing existing infrastructure of the former LTV Steel taconite processing site. (Image courtesy of PolyMet Mining.)
PolyMet CEO Jon Cherry described the venture as “extraordinary” and expects it to become one of the largest clean-energy mineral resources in the world.
“With both projects representing approximately half of the known resources of Minnesota’s Duluth Complex…Minnesota emerges as a global leader…in developing strategic minerals to feed the North American supply chain for clean energy technologies,” Cherry said.
Located in the Mesabi Iron Range, the NorthMet project has proven and probable reserves of 263 million tonnes grading 0.288% copper and 0.083% nickel for 1.67 billion lb. copper and 480 million lb. nickel. The reserves lie within measured and indicated mineral resources of 721 million tonnes grading 0.234% copper and 0.071% nickel, according to a 2019 technical report.
The NorthMet project is expected to produce 29,000 tonnes of ore per day over a 20-year permitted mine life, with first production targeted for 2026. Over its first full five years of operations, it is expected to deliver annual payable production of 30,000 tonnes of copper, 3,600 tonnes of nickel, 58,000 ounces of palladium, and 12,000 ounces of platinum.
NorthMet acquired nearly two dozen state and federal permits necessary to build and operate the 32,000 tons-per-day (29,000 tonnes) mine and processing facility. Three permits are pending final resolution to achieve project approval, the company said.
Mesaba is an early-stage project which has measured and indicated resources of 1.5 billion tonnes and inferred resources of 1.4 billion tonnes. According to Teck, the project contains “significant undeveloped copper-nickel resources.”
At press time in Toronto, shares of PolyMet Mining were trading at $3.79, up 25 cents or 7.06%, within a 52-week trading range of $3.05 and $6.15.
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