Rio Tinto, the parent company of Kennecott Eagle Minerals, has announced that it will spend $469 million to develop a controversial nickel and copper mine on the Yellow Dog Plain west of Marquette.
UpperMichiganSource.com reports that the funding will pay for the construction of the new underground mine, associated surface facilities for servicing the mine, rehabilitation of the existing Humboldt Mill, and the development of a multi-use access road.
Jon Cherry, General Manager of Kennecott Eagle Minerals said, “Nickel and copper from the Eagle deposit will add an important source of these raw materials as long-term demand for them is expected to grow. At the same time, construction of the project in the near term, and its operations in the years ahead, stand to create hundreds of much needed and well paying jobs for Michigan workers.”
Construction of the mine and mill projects will begin this year with initial site preparation and civil work at the mine site and demolition work at the mill.
The main focus of work in 2010 will be construction of an advanced water treatment plant and related environmental control systems, as well as detailed engineering. Construction is slated to run through 2013 with production commencing in late 2013.
Opponents of the mine claim that it will result in acidic mine drainage that will damage the Lake Superior watershed.
For a month members of the Keweenaw Bay Indian Community and others camped out at the site of the planned mine in an effort to block its development.
Though Kennecott claims that it has all the permits necessary to begin construction of the mine, the U.S. Environmental Protection Agency has stated that it has not yet determined whether the company must seek a federal waste water permit for the project.