FAQ
What is the Eagle Project and why is it needed?
Who is responsible for enforcing mining regulations to ensure compliance with laws?
How is the financial assurance amount determined?
Will the Michigan Natural Resources Trust Fund benefit from the Eagle Project?
How is Kennecott ensuring an environmentally safe mine against factors such as Acid Rock Drainage?
Has there ever been a metallic mineral mine that succeeded in protecting the environment?
What benefits will the Eagle Project bring to the local community?
What percentage of jobs will be drawn from the local community?
What is a metallic mineral mine?
Why are metallic mineral mines important?
What are the primary environmental issues related to metallic mineral mining?
Can metallic mineral mining be done in a manner that protects the environment?
What is the Eagle Project and why is it needed?
Kennecott is a leading producer of critical minerals and metals needed by a variety of industries to produce the things society needs and uses. Nickel, one of the most important of such minerals, is used to make everything from cars and appliances, to aeronautics and high tech medical instruments, to household batteries and environmentally friendly hybrid cars. The Eagle Project in Northern Marquette County is the only primary Nickel mine in the U.S., generating approximately 300 million pounds of Nickel. Kennecott will employ approximately 200 people and generate substantial economic activity for area businesses. Other communities where Kennecott has operated mines have experienced economic vigor that began with the mine, but has extended long after mine closure.
Who is responsible for enforcing mining regulations to ensure compliance with laws?
The Michigan Department of Natural Resources and Environment (MDNRE) has primary responsibility for enforcing compliance with all air, water and mining regulations, as well as mine reclamation once mining is complete, as prescribed by statute and promulgated rules.
The metallic mineral mining regulations are administered by the Office of Geological Survey (OGS) pursuant to the statutory requirements of Part 632, of the Michigan Natural Resources and Environmental Protection Act, 1994 PA 451, as amended MCL 324.63201.
Do Kennecott’s permit applications meet the rules and regulations of Michigan’s new Metallic Hard Rock Mining Law?
Yes. Kennecott designed the project to meet or exceed the rules and requirements of the Michigan Non-Ferrous Metallic Mining Law and has received approval on all State permits. Kennecott strongly supported the establishment of strict standards and regulations for nonferrous metallic mining before submitting applications to the MDNRE for its proposed Eagle Project. These regulations provide the company with clear standards that must be met for mining to occur; they provide the public with assurances that requirements for environmental protection are being met.
How is the financial assurance amount determined?
Michigan law provides a specific methodology for determining the appropriate amount of financial assurance of each proposed mining project. For the Eagle Project, an assurity bond for $18 million on the mine and $5.2 million on the mill has been paid by Kennecott with the State named as beneficiary.
Will the Michigan Natural Resources Trust Fund benefit from the Eagle Project?
Yes. Approximately half of the minerals to be produced by the Eagle Project are leased by Kennecott from The State of Michigan. This portion of Kennecott’s production will result in royalty revenues to the NRTF, determined by commodity prices at the time the minerals are processed. The NRTF provides a source of funding for public acquisition of lands for resource protection and public outdoor recreation. Funding is derived from royalties on the sale and lease of state owned mineral rights.
How is Kennecott ensuring an environmentally safe mine against factors such as Acid Rock Drainage?
Environmental responsibility and protection is a priority. Preventing and controlling the conditions that can lead to the potential for Acid Rock Drainage (ARD) to occur is central to the planning and design of the Eagle Project. ARD may occur when rocks naturally containing sulfides are exposed to air and water over time (all three elements must be present), sometimes producing a dilute sulfuric acid. Successful management of this issue first requires a comprehensive understanding of the fundamental principles of ARD and the details of local geology — Kennecott has developed expertise and knowledge of both.
A conservative approach to managing ARD is the best approach. While not all rock from the area of the proposed mine contains sulfides, Kennecott will treat it all with the same process to provide the greatest assurance of protection.
Kennecott has also developed demonstrated measures that protect important groundwater and surface water bodies. Two separate but complementary systems — a multi-lined storage area for rock brought to the surface for temporary storage and a water treatment plant — work together to ensure water discharged back to the environment is safe. Both were created to prevent any water that comes into contact with the development rock from entering groundwater or nearby surface water bodies. Water from the site will be treated to better than drinking water quality before being discharged.
Has there ever been a metallic mineral mine that succeeded in protecting the environment?
Yes. Not only has there been, but at the Flambeau Mine in Ladysmith, Wisconsin, Kennecott Minerals is the company that successfully designed, operated, and reclaimed a sulfide host metallic mineral mine while protecting the environment from adverse impact. Protecting groundwater, the Flambeau River, which runs within 140 feet of the former mine, and other aquatic features started with Kennecott’s mine design that included key measures for preventing and managing potential Acid Rock Drainage. The result has been positive: water quality analysis of the Flambeau River, both upstream and downstream of the mine site is consistent and unaffected by the mine. While water chemistry in the mine’s backfill pit is different, it is within a range that it is protective of the surrounding environment, as demonstrated by the water quality in the Flambeau River. Importantly, the Flambeau Mine remained in compliance with state permit standards for the 15 years that have included operations and the ten years since the mine’s closure — no permit violations ever occurred.
What benefits will the Eagle Project bring to the local community?
The Eagle Project can meet the local communities’ greatest ongoing need: the creation of local jobs and tax revenues. In today’s economy, business development is critical to future economic growth – both locally and statewide. Kennecott Eagle Minerals’ Project will employ more than 200 individuals directly involved in the project, with a goal of at least 75 percent of its employee base drawn from the local community. The estimated payroll without benefits is $21 million per year, new dollars in the community that will be spent by families locally on food, clothing, cars, etc. The capital investment of the Eagle Project is estimated at more than $469 million. Experience shows Kennecott’s project will be a catalyst for other business development and cultural growth that can be sustained when mining is completed.
Is the land Kennecott owns or leases covered under the Commercial Forest Reserve Act, which provides public access for hunting, fishing, etc?
Kennecott owns or leases approximately 1,600 acres in northern Marquette County, of which fewer than 120 acres — less than 10 percent — will be used for the Eagle Project. Other than the operational areas, the rest of Kennecott’s land will remain open to activities traditionally enjoyed by residents and visitors, such as hunting, hiking, fishing, snowmobiling, etc.
What percentage of jobs will be drawn from the local community?
Kennecott’s goal is to hire 75 percent of its employee base from the local community and our track record demonstrates this promise. At Flambeau, a Kennecott mine in Wisconsin, the actual number was approximately 84 percent. Kennecott expects similar percentages to apply at peak employment when the Eagle mine is in full operation. With the U.P. history in mining we will have a wealth of skilled and experienced miners, engineers, mechanics and other qualified workers with the right knowledge, and responsibility for safety we seek.
What is Nickel used for?
Nickel is one of the most important and strategic base metals used in manufacturing materials for our society. It is the main mineral mixed with Iron to create Stainless Steel. Nickel is what gives Stainless Steel its exceptional strength and corrosion resistant properties. From common household batteries to some of the most advanced technologies of today’s society, the modern uses of Nickel are vital. This essential metal includes applications by the health care industry to create Stainless Steel tools for surgery, a demand for which has increased substantially in recent years. Nickel also includes commercial and industrial kitchen industries; aeronautics manufacturers; computer makers; and advanced batteries critical in gasoline-electric hybrid, environmentally friendly cars. These, along with many other products are critical to our nation’s economy.
What is a metallic mineral mine?
A metallic mineral mine is an orebody formed in the presence of naturally occurring sulfur. This type of orebody contains minerals such as Pentlandite (a Nickel mineral) and Chalcopyrite (a Copper mineral). Sulfide is not mined but is host to these important minerals and metals.
Why are metallic mineral mines important?
Metallic mineral mines are important because the overwhelming majority of base metals such as Copper, Nickel, Silver, Lead and Zinc come from sulfide orebodies. These metals are essential to our economy and provide the foundation for the production of basic construction materials, electronics, and power distribution. Copper is used to conduct electricity in every home and office building that uses power. Nickel is an essential component of Stainless Steel that is used in everything from medical equipment, to high strength steel applications, to batteries for gasoline-electric hybrid cars.
What are the primary environmental issues related to metallic mineral mining?
Environmental responsibility and protection is a priority for Kennecott. Preventing and controlling the conditions that can lead to potential environmental issues such as Acid Rock Drainage (ARD) is central to the planning and design of the Eagle Project. ARD may occur when rocks naturally containing sulfides are exposed to air and water over time (all three elements must be present), sometimes producing a dilute sulfuric acid. Successful management of this issue first requires a comprehensive understanding the fundamental principles of ARD and the details of local geology — Kennecott has developed expertise and knowledge of both.
Kennecott has also developed demonstrated measures that protect important groundwater and surface water bodies. Two separate but complementary systems — a multi-lined storage area for rock brought to the surface for temporary storage and a water treatment plant — work together to ensure water discharged back to the environment is safe. Both were created to prevent any water that comes into contact with the development rock from entering groundwater or nearby surface water bodies. Water from the site will be treated to better than drinking water quality before being discharged.
Can metallic mineral mining be done in a manner that protects the environment?
Yes! Kennecott Minerals has demonstrated that it can be done through operation and closure of the Flambeau Mine in Wisconsin from 1993 through 1997. This was a sulfide orebody containing copper minerals. This mine operated within 140 feet of the Flambeau River. Based on monitoring results during operations, as well as monitoring in the 10 years since closure, the Flambeau River remains fully protected and the mine continues to meet all environmental permit conditions. This mine also received the first Sustainable Development Award (July 9, 2004) for a mine from the U.S. Department of the Interior.
In your design process for dealing with storm water, what factor do you apply for dealing with 100-year event? Considering a max snow load with an extreme rainfall event?
Storm water management designs vary based on site-specific conditions. In many instances, KEMC will design for greater than a 100-year flood event on top of a maximum snow pack. The design of the tailings impoundment at KEMC’s mine near Ridgeway, South Carolina, allowed the impoundment to handle up to 44 inches of precipitation during a 24-hour period. This was calculated to be a Probable Maximum Precipitation (PMP) event, even more conservative than a 10,000-year storm event, which is the design criterion used for all other water structures at Ridgeway.
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