A subcommittee of the governor’s Task Force on Mining and Minerals, charged with looking at the future of copper-nickel mining in northeastern Minnesota, has recommended that the state fund a $371,500 research project.
The project, which would take 15-30 months to complete, would look at solutions to processing low-grade copper-nickel deposits discovered on the eastern end of the Iron Range in the 1950s and 1960s.
About 4 billion tons of mineralized rock lie along a 30-mile stretch from Hoyt Lakes to the Boundary Waters Canoe Area Wilderness.
The deposits haven’t been developed, primarily because of the potential for environmental problems involved in processing the copper-nickel. Development of the copper-nickel industry in northeastern Minnesota has been talked about for years, but so far, there has been little significant progress.
That’s partly because the value per ton of the low-grade copper-nickel in northeastern Minnesota is relatively low.
Development of the copper-nickel industry is similar to what was faced by the iron ore industry several decades ago.
When high-grade iron ore was depleted, low-grade taconite needed to be concentrated into a purer form to make taconite mining economically feasible. It is doubtful that a specialty smelter to process Minnesota copper-nickel will be built, so experts say the answer to development of the copper-nickel industry hinges on finding a process that could turn the deposits into a concentrate that can be used in existing smelters or coming up with a non-smelting process that could turn the ore into metal.
Initial copper-nickel metallurgical tests would cost $171,500 and run for 9-18 months. That would be followed by 6-12 months of tests at a pilot plant at a cost of $200,000.
State funds would be supplemented by $25,000 from industry sources and $43,500 from Minnesota Technology Inc. and Airmetco International Inc., holder of the Babbitt copper-nickel deposit.
The Babbitt deposit contains about 400 million tons of copper and nickel. If a copper-nickel mine is developed, industry analysts say it could provide employment comparable to that of a medium-size taconite mine. That could mean 350-750 jobs. To spur development of a copper-nickel mine, the subcommittee is recommending that the Iron Range Resources and Rehabilitation Board continue to hold the authority to give a $10-million loan for new facilities and that any new mine construction be exempt from state sales taxes.
In early March, the task force will issue a list of mining industry recommendations to the governor and state legislature.
— From the Knight-Ridder/Tribune Business News service.
Be the first to comment on "Minnesota ponders copper-nickel deposits"