Proposed UP copper mine receives $50M grant
GRAND RAPIDS, Mich. (WOOD) — The state on Tuesday awarded a $50 million grant to a proposed copper mine in the Upper Peninsula.
Canadian company Highland Copper is working to open Copperwood Resources, Inc., a mine proposed in Gogebic County. Back in January, the Michigan Strategic Fund board referred a request for a $50 million performance-based Strategic Site Readiness Program grant back to a subcommittee. Some MSF board members had concerns about the project’s financing.
Dimitrius Hutcherson, the chair of the Finance and Investment Subcommittee, said his team has since heard from industry experts, regulators and project staff. The subcommittee also received a lot of public feedback.
“The subcommittee has spent considerable time evaluating concerns over this project: its financial structure, the impact to the region and the overall impact to the environment,” he explained.
Proposed UP copper mine hits roadblock over $50M grant
He said the team made some suggestions on the structure of the deal and ways to protect natural resources and the state’s investment.
In the proposal the MSF saw Tuesday, the company must secure at least $150 million in financing before requesting the disbursement of the grant’s funds. That financing must be secured by the end of 2025.
The company must also provide the state with financial assurance as part of the permitting process. When the mine closes, if the company is not able to complete the required reclamation steps to protect the environment, the state would step in and use the money it received from the financial assurance to follow the closure plan.
Many residents and community leaders spoke in support of the project during the meeting’s public comment, citing the 380 jobs — with average wages in the $80,000 to $120,000 range — the mine is expected to create. They said the area, which has a median wage of $41,000 and saw the 1995 closure of the White Pine Mine, the 2010 closure of the Ontonagon Paper Mill and the 2018 closure of the Ojibway Correctional Facility, desperately needs more jobs.
Inside WOODTV.com: Building West Michigan
Others spoke against the project, some citing environmental concerns.
The MSF board ultimately voted to approve the $50 million grant. The funds will be used for infrastructure improvements, which the Michigan Economic Development Corporation said would continue to help the community after the mine closes.
The $425 million mine is expected to have a minimum life of 11 years, but the company’s CEO during the January meeting said his team believes it could last between 15 to 20 years.
The MEDC expects the project would create $1.3 billion in personal income and $121 million in tax revenue to the state, including $62 million from the Michigan Severance Tax, a tax specific to the mining industry.
The mine is expected to produce 675 million tons of copper, which is used in the production of electric vehicle batteries.
For the latest news, weather, sports, and streaming video, head to WOODTV.com.
