Obama Administration Blocks Two Mining Leases in Northern Minnesota
December 15 2016 - 5:45PM
Dow Jones News
By Kris Maher
The Obama administration on Thursday blocked two copper-mining
leases in Minnesota, handing a victory to environmental groups that
wanted to protect more than a million acres of lakes and forests in
the state's Iron Range.
The Agriculture Department and Interior Department rejected the
renewal of two leases that would have allowed for the mining of
copper, nickel and other minerals from federally leased lands. The
agencies said the step was taken to protect the Boundary Waters
Canoe Area Wilderness. The U.S. Forest Service, part of the
Agriculture Department, went a step further and asked Interior to
withdraw parts of the watershed from consideration for future
mining projects.
"The Boundary Waters is a natural treasure, special to the
150,000 who canoe, fish, and recreate there each year, and is the
economic life blood to local business that depend on a pristine
natural resource," said Tom Vilsack, Agriculture Secretary.
He said he asked his agency to "take a timeout" to conduct an
environmental analysis and engage in public comment on whether
future mining should be allowed on federal lands near the Boundary
Waters.
It wasn't clear if the incoming Trump administration could
easily undo the move. President-elect Donald Trump has said he
wants to reverse Obama administration environmental policies that
Mr. Trump argues have restricted job creation in oil and gas
development and the mining sector. A spokesman for the Trump
transition team couldn't immediately be reached to comment.
Twin Metals Minnesota, which had sought to renew the leases,
said it was "greatly disappointed" by the administration's
decision. If allowed to stand, the administration's actions "will
have a devastating impact on the future economy of the Iron Range
and all of Northeast Minnesota," the company said in a
statement.
Twin Metals, which is owned by Chilean mining company,
Antofagasta PLC, said it would continue to pursue "legal avenues"
to protect its mineral rights. In September, the company filed a
lawsuit in federal court in Minnesota in which it argued that the
Interior Department didn't have discretion to deny renewal of the
company's leases. Twin Metals said the leases were first granted by
the federal government in 1966 with unlimited 10-year renewals.
Twin Metals said it has invested more than $400 million in
project development activities related to the leases. The company
has said it hasn't yet submitted proposed mining projects on the
leases, which would be subject to a thorough environmental review
by federal and state agencies.
It was the second time in a month that the Obama administration
had denied an approval to a company out of environmental concerns.
Earlier this month, the Department of the Army denied a permit
needed by Dallas-based Energy Transfer Partners LP to complete the
Dakota Access Pipeline, a four-state crude-oil pipeline, out of
concerns that it endangered the drinking water of the Standing Rock
Sioux.
Write to Kris Maher at kris.maher@wsj.com
(END) Dow Jones Newswires
December 15, 2016 17:30 ET (22:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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