PolyMet copper mine timetable slowed again

DULUTH, Minn. (AP) — The proposed PolyMet Corp. copper mine in northeastern Minnesota is facing more delays in the timetable to finish its environmental review.

PolyMet's vice president of environmental and government affairs, Brad Moore, told the Duluth News Tribune on Tuesday that the mine's revised state-federal Environmental Impact Statement (EIS) probably won't be completed until the second quarter of 2012.

That's months later than predicted by state and federal officials, including U.S. Rep. Chip Cravaack, R-Minn., who said the statement would be ready by January.

Officials also predicted in October that operating permits for the mine could be issued in late 2012. But Moore said Tuesday that probably won't happen until 2013.

Once permits are issued, construction would take about 14 months. Moore said any production at the plant isn't likely until 2014.

"It's just taking longer than everyone thought," Moore told the newspaper. "It's a lot of effort on everyone's part to make sure all of the issues are vetted out."

The effort includes using sophisticated modeling to run tests on how the company's specific proposals to operate the mine and processing plant would comply with state and federal air and water emissions regulations. If the models show a glitch, the company has to respond with a revision or a solution, Moore said.

"As the modeling reveals concerns, you adjust the project so in the end of the Environmental Impact Statement process you meet all the parameters," Moore said. "If we don't do this now, we'd never be able to get the permits. The EIS shapes the permits."

Meanwhile, PolyMet announced Tuesday it has finalized a deal to receive $20 million from Swiss commodities giant Glencore in exchange for PolyMet stock. The money will keep PolyMet afloat and moving forward until production can begin; Glencore now owns 25 percent of PolyMet.

The draft Environmental Impact Statement, a review of all the possible environmental issues surrounding the project, is considered critical. Not only does the statement set up the scenario for how PolyMet may move forward, it also is expected to set precedent for a half-dozen or more additional copper mines proposed from Ely to Aitkin County.

PolyMet, a publicly traded company incorporated in Canada, plans to build the proposed NorthMet mine as an open pit near Hoyt Lakes on the eastern end of the Mesabi Range. The U.S. Environmental Protection Agency sent PolyMet back to the drawing board last year when it deemed the project's Environmental Impact Statement inadequate.

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Online:

PolyMet Corp.: http://www.polymetmining.com

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Information from: Duluth News Tribune, http://www.duluthsuperior.com