Teck-Glencore JV aims to jumpstart stalled Minnesota project

NewRange Copper Nickel is embarking on a series of studies over the next year to assess whether new mining technology and sustainability developments can remove permitting barriers at its key project in Minnesota.

Newrange is a 50/50 joint venture established by Teck Resources (TSX: TECK.A/TECK.B; NYSE: TECK) and Glencore (LSE: GLEN) to develop the NorthMet and Mesaba deposits – two large, distinct, and well-defined copper-nickel PGM resources in the Iron Range mining region of Minnesota.

Last June, the U.S. Army Corps of Engineers revoked the project’s Clean Water Act Permit, citing a failure to comply with water quality standards of the Fond du Lac Band of Lake Superior, rather than those of the state of Minnesota. In December, a court upheld its air emissions permit. NewRange is currently reviewing its approach to permitting.

The NewRange studies focus on the more advanced NorthMet project, which is located near both existing and closed iron ore mines and would use existing tailings storage and plant locations to minimize environmental impact. The proposed mine is expected to process 29,000 tonnes of ore per day over a 20-year permitted mine life, with first production targeted for 2026.

The studies will look at enhancing the project’s environmental safeguards and performance. The company says they are designed to meet all permitting requirements. Proposed changes may be subject to supplemental environmental review and permitting, and will include multiple opportunities for public comment and feedback.

NewRange plans to engage a new team with global expertise on tailings storage, water science, efficient production and carbon reduction to lead the work.

The studies position NewRange to meaningfully support the U.S. clean energy transition and compete in the global economy by creating a domestic supply chain of multiple clean energy minerals – while limiting new environmental impacts and cleaning up former mine sites, it said in a press release.

“As momentum continues to sustainably develop NewRange, we are sharing our plans before studies are complete, because transparency and engagement with Tribal Nations, local communities and other stakeholders are foundational to the review process and contributes to development of a world-class mine on Minnesota’s Iron Range,” said Tannice McCoy, NewRange president and general manager.

Glencore attempted to buy Teck for US$23 billion last year, but instead walked away with its Elk Valley Resources metallurgical coal business.

Tailings storage 

NewRange is studying a variety of tailings storage options that will minimize impact by reusing the former LTV iron ore tailings facility and clean up impacts from previous iron mining operations. These include keeping the current design detailed in permits, potentially refining the current design to use a centreline dam design, or possibly relocating tailings storage to nearby unused mining pits.

“Our NorthMet project already represents the largest private investment in the cleanup of former mine sites in Minnesota’s history. We are evaluating if we can make this project even better,” said McCoy. 

“Regardless of which option is identified as the best solution, our objective is to ensure that tailings storage is safe and stable, and that we take advantage of any reasonable opportunities to clean up old contamination.”

A comprehensive network of water monitoring locations will provide the baseline data to help ensure that NewRange meets or exceeds state, federal and tribal standards before, during and after operations. 

Water science 

NewRange is reviewing planned water treatment technologies, which already meet all applicable water quality standards.

This review allows its team of water experts to evaluate new opportunities to address water quality and management challenges from historic and proposed new mining operations, protect the local environment, and safeguard water quality for generations to come.

“Our groundbreaking water treatment and management plan already has in place more water and wetland monitoring than all other Minnesota mines combined, and we will invest over US$100 million to modernize the previous mining site to meet or exceed stringent water discharge standards,” McCoy said.

“In fact, NewRange will be the first industrial project to meet the state’s long-standing ‘wild rice standard’ for sulfate discharge limits. Currently, we know of no other business that has achieved this standard.” 

Efficient production

NewRange is studying how to utilize the existing footprint to modestly increase production from 32,000 tons per day to 40,000 tons per day to deliver an increased domestic supply of high-demand copper, nickel and cobalt, while reducing project emissions.

There would be no change to the project’s 225 million total tonnage of minerals currently permitted for mining and processing. However, if feasible, increased daily production could shorten the mine plan from 20 years to 15 years.

NewRange is also studying how to reduce greenhouse gas emissions (GHG) project-wide in the near and long term, including options to sequester carbon in mine tailings.