Name of the Project
NorthMet copper/nickel/precious metals project.

Location
Near Hoyt Lakes, Minnesota, in the US.

Project Owner/s
PolyMet Mining Inc, a subsidiary of PolyMet Mining Corp.

Project Description
NorthMet will be developed in two distinct phases.

Phase 1 involves the proposed development of 225-million tons – nearly one-third of NorthMet’s known resource – into an operating mine processing 32 000 t/d over a 20-year mine life. It also includes rehabilitating the former LTV Steel Mining Company processing plant.

Under Phase 1, which includes revenues based only on concentrate sales, payable metals in the concentrate are estimated at 1.1-billion pounds of copper, 133-million pounds of nickel, a combined 1.1-million ounces of platinum, palladium and gold, one-million ounces of silver and 5.6-million pounds of cobalt.

Phase 2 involves the proposed construction and operation of a hydrometallurgical plant to treat nickel sulphide concentrates into upgraded nickel/cobalt hydroxide, and recover additional copper and platinum-group metals.

Under Phase 2, payable metals in enriched cop­per concentrates and products from the hydro­­metallurgical plant are estimated at 1.2-billion pounds of copper, 174-million pounds of nickel, 1.6-million combined ounces of platinum, palladium and gold, one-million ounces of silver and 6.2-million pounds of cobalt. Palladium is the predominant precious metals group product, totalling 1.2-million ounces.

NorthMet has proven and probable reserves of 290-million tons and a measured and indicated resource of 795-million tons.

Potential Job Creation
The project is expected to create more than 1 000 direct and spinoff jobs, and about two million-hours of construction labour.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 7% discount rate, of $173-million for Phase 1 and $271-million including Phase 2.

The project has an internal rate of return of 9.6% for Phase 1 and 10.3% including Phase 2.

Capital Expenditure
Capital costs for Phase 1 are estimated at $945-million and include the refurbishment of the existing primary crushing circuit and replacing the existing rod and ball mill circuits with a new, modern semiautogenous grinding mill, ball mill and flotation circuit. It also includes rail upgrades, mining equipment and a state-of-the-art wastewater treatment plant.

Phase 2 will increase the project’s capital costs by about $259-million.

Planned Start/End Date
Not stated.

Latest Developments
Environmentalists have sued the US Forest Service in an attempt to reverse a 2017 land transfer that gave PolyMet Mining more than 2 670 ha needed to build the NorthMet mine.

The suit, led by the Center for Biological Diversity (CBD), claims the project will destroy a region home to the Canada lynx and the northern long-eared bat, both of which are listed as threatened with extinction under the US Endangered Species Act.

Similar lawsuits from CBD and others failed in 2019, with the court finding the parties lacked standing because PolyMet had not yet obtained permits and, thus, there was no way of measuring whether the project would cause imminent harm to the region.

PolyMet has since acquired the land and obtained most of its permits. The environmental groups are asking the court to now hear their claims on the merits of and order the Forest Service to take back the land.

The US Fish and Wildlife Service, the US Army Corps of Engineers and US Secretary of the Interior Deb Haaland in her official capacity are the co-defendants.

PolyMet believes the land transfer will stand. "We're confident we'll be able to address whatever issues arise," spokesperson Bruce Richardson has said.

Other parties joining CBD in the lawsuit include the Save Lake Superior Association, Save Our Sky Blue Waters, Friends of the Cloquet Valley State Forest and Duluth for Clean Water.

The lawsuit comes after a state court ordered regulators to reconsider a wastewater permit for the PolyMet project. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Polymet Mining investor relations, Tony Gikas, tel +1 651389 4110 or email investorrelations@polymetmining.com.