$50m Michigan grant for Highland’s Copperwood project

27th March 2024 By: Mariaan Webb - Creamer Media Senior Deputy Editor Online

$50m Michigan grant for Highland’s Copperwood project

The Michigan state government has granted Vancouver-based Highland Copper a performance-based grant totalling $50-million for its Copperwood project.

This follows an evaluation of the project’s potential and its significance in revitalising the Upper Peninsula, which has faced economic challenges owing to industry closures in recent decades.

The grant, sourced from the Strategic Site Readiness Programme under the Strategic Outreach and Attraction Reserve Fund, aims to facilitate investment-ready sites and bolster economic development.

Funds will be disbursed as performance-based reimbursements, primarily focusing on infrastructure development, including roads, communications infrastructure, and power supply to the site.

Highland Copper CEO Barry O'Shea expressed appreciation for the grant, highlighting its importance as a significant financial boost for the Copperwood project's success and the region's economic strength.

According to a 2023 feasibility study, Copperwood will produce a yearly average of 64.6-million pounds of copper and 106 966 oz of silver over a ten year mine life.

Initial capital expenditure is estimated to be $391-million. The project has an internal rate of return of 17.6% and a net present value of $168-million, after tax.