The development of the NorthMet copper and nickel mine in Minnesota is set to gain further momentum, with the project – on the cards for almost two decades – now under a new joint venture (JV) that links the expertise, experience and financial resources of PolyMet, Teck Resources and Glencore.
NewRange Copper and Nickel JV, which closed on Wednesday, is the owner of the NorthMet and Mesaba projects. These projects are two of the biggest undeveloped clean energy mineral resources in the US, containing high-demand copper, nickel, cobalt and platinum group metals (PGMs).
The owners have committed to an initial work programme of $170-million to maintain permits, update feasibility cost estimates, undertake detailed engineering to position NorthMet for a development decision following permit clearances, and advance Mesaba studies.
PolyMet has navigated the NorthMet project through the federal and state environmental review process and federal land exchange – a process that involved considerable public involvement and tribal consultation. The project, located near the community of Hoyt Lakes in north-eastern Minnesota, earned nearly two dozen state and federal permits necessary to build and operate the 32 000 t/d (29 000 t) mine and processing facility.
Three permits are pending final resolution of litigation and regulatory process to achieve final project approval.
Over its first full five years of operations, NorthMet is expected to deliver yearly payable production of 30 000 t of copper, 3 600 t of nickel, 58 000 oz of palladium, and 12 000 oz of platinum.
“We are pleased to have a partner like Teck join us in this transformational venture with its strong balance sheet, exceptional record of community involvement and sustainable mining practices, and world-class technical and mining capabilities,” said PolyMet chairperson, president and CEO Jon Cherry.
He added that the closing of the JV moved NewRange to the forefront of responsible development of US-sourced critical minerals.
Meanwhile, Mesaba project veteran Tannice McCoy has been named NewRange general manager. Her experience includes advancing baseline studies, obtaining permits for specific work projects in Minnesota and completing detailed assessment of mineral processing options for the copper and nickel concentrates that will be produced in Minnesota.
“NewRange Copper Nickel has potential to be a modern, multi-generational operation that will support North America’s acceleration to a carbon-neutral future, build a better quality of life for people, and diversify and create significant economic benefits for northern Minnesota and beyond,” McCoy said.
NewRange’s two resources contain measured and indicated resources of 702-million tons and 2.23-billion tons for NorthMet and Mesaba, respectively, and additional inferred resources of 441-million tons and 1.42-billion tons, respectively. In total, the two assets represent about one-half of the known eight-billion-ton Duluth Complex resource in north-eastern Minnesota.