MARQUETTE, Mich., Feb. 7 /PRNewswire/ -- Kennecott Eagle Minerals Company today received the final approvals the company needs from the State of Michigan before beginning construction of an underground mine in the state's Upper Peninsula. The Eagle Mine will serve as the only primary nickel mine in the United States, and will employ hundreds of area workers over the coming decade during construction and operations.
The Michigan Department of Natural Resources authorized a land surface use agreement, and also approved Kennecott's proposed post-mining reclamation plan. These approvals complete the state's permitting role. In December 2007 the Michigan Department of Environmental Quality issued three principal permits needed for the project.
"Completion of the state approval phase marks an important milestone in the development of the Eagle project, as it moves the project to realization" said Eagle General Manager Jon Cherry. "Achieving the necessary state approvals has been the focus of our activities over the last four years, and obtaining them literally moves the project 'off of paper and onto the ground'. The approval process has been thorough and rigorous, as expected of the first new mine in Michigan's modern era."
The land surface use agreement covers a 120-acre area of state-owned land where aboveground facilities and equipment will be built to service mine operations, along with the portal to the underground deposit. Approval of the reclamation plan provides additional regulatory agency oversight of Kennecott's activities related to removing facilities and returning the land to pre-mining conditions once mining operations have concluded. The MDEQ also has oversight of post-mining activities at the site.
The Eagle project will provide a significant boost to the region's economy over the next decade. Kennecott officials have said the company has additional exploration activities underway that could potentially extend the role mining plays in the economy for many years to come. Kennecott's production of minerals from the underground ore body at Eagle could generate a royalty of up to $50 million to the state's Natural Resources Trust Fund, based on commodity prices for nickel and copper. The NRTF secures revenues and royalties from nonrenewable resource development -- oil, gas, and minerals -- and is used by the state to purchase new recreational lands for public use. At the local level, area school districts will be among the primary beneficiaries of the project's economic infusion, with property tax payments based on the fair market value of the mine.
https://www.eagle-project.com
SOURCE Kennecott Eagle Minerals Company
For further information: Jon Cherry, +1-906-225-5791, or Deborah Muchmore, for Kennecott, +1-517-372-4400 or +1-517-449-9811