When the federal government first issued leases in 1966 to allow mineral exploration on the Superior National Forest near Ely, there was no expectation the leases would last forever. The Timberjay newspaper recently reported on documents from that time period that recorded the negotiations between the government and International Nickel Co. (INCO).
Today, conflict has broken out over the leases, which were passed down from one company to another, eventually acquired by Twin Metals. The company is seeking to extract copper, nickel and other metals from sulfide-bearing ore near the South Kawishiwi River.
The location of the potential mine, and the industry’s track record of water pollution, has raised concern about the proposal.
In December 2016, the Obama administration decided it did not have to automatically renew the leases, and moved to shut down mineral exploration on public lands in the area. The Trump administration reversed that decision in May, saying Twin Metals had a right to renew the leases.
But the historical record shows that INCO initially sought a 50-year lease, which was rejected by authorities. In exchange for a shorter lease, the company was given better royalty rates from the government. In a 1966 press release announcing the lease decision in 1966, the Department of the Interior made clear what the limitations were.
“They grant mining rights to the company for 20 years, renewable for 30 years at 10-year intervals if the property is brought into production within the initial 20-year term,” the agency said.
INCO never moved past exploration and started mining and producing ore, which can be interpreted to mean the leases did not need to be renewed after 1986.
Legal maneuvers
The question of renewing the leases is currently the subject of lawsuits. The question of renewing the leases is currently the subject of lawsuits, led by Northeastern Minnesotans for Wilderness and nine businesses that depend on the Boundary Waters Canoe Area Wilderness, a coalition of national environmental groups, and the Friends of the Boundary Waters Wilderness.
The historical memos and documents were provided to the plaintiffs during discovery, and the Timberjay then acquired them.
“The discussions and agreements described in the memoranda suggest that the Trump administration may have a difficult time defending the validity of the legal opinion under which Interior officials made their decision,” the Timberjay reported.
The Timberjay reports that the anti-mining plaintiffs are expected to file briefs in January, followed by responses in February and March. A decision from District Court Judge Trevor N. McFadden, a Trump appointee, could come early next summer.
Read the Timberjay’s full article and view the documents here.