ej

Buried Treasure

A new sulfide mine could boost Michigan's economy, but critics say the risks may outweigh the benefits.

Spring 2008

If everything goes according to plan, Michigan could receive millions of dollars in revenue and the state’s Upper Peninsula (UP) could gain hundreds of jobs.

If it doesn’t, the peninsula’s ground and surface water could be heavily polluted, new ghost towns could be created and irreparable harm could be done to its tourism industry.

That’s the dilemma facing environmentalists, business leaders and residents of the UP, an area that once produced more than half of the world’s copper. Falling mineral prices, technological advances and the development of open-pit mining eventually doomed what was once the area’s life-blood. But the UP survived, mostly due to a thriving tourist industry.

Today, there are two active iron mines and no active copper mines in the UP. There’s still plenty of metal left in the ground, but most of it costs too much to get to. The Kennecott Minerals Co., a multi-national mining company, is eyeing a part it thinks is worth digging up.

In 2002 Kennecott identified a deposit of nickel and copper ore that covers a six-acre area, contains 300 million pounds of nickel and 250 million pounds of copper. It estimated the metals’ value at greater than one billion dollars. The mine proposed is known as the Eagle Project.

During the 10 years of construction and operation of the mine, Kennecott estimates that 400 to 600 jobs will be created, 75 percent of them local hires. The mine will also add more than $150 million to Michigan’s economy through taxes and fees—a boost sorely needed.

Opposing Views
Despite its advantages, there are dangers. The Eagle Project is a sulfide mine—the name comes from the sulfur oxide ore that contains the metals. Sulfide mines are also known as acid mines.

When the ore is exposed to oxygen and water, a chemical reaction takes place that forms sulfuric acid, a substance also known as battery acid. If the acid gets into waters surrounding the mine—a phenomenon known as acid mine drainage—it could be lethal to plant and animal life. The acid can also dissolve heavy metals found in the ore, such as mercury, and add them to nearby water.

The ore is in the Yellow Dog Plains—an area untouched by development—25 miles northwest of Marquette, the UP’s largest city. Marquette and the plains are very wet environments, receiving more than 35 inches of precipitation annually. There is also groundwater and two rivers, the Yellow Dog and Salmon Trout, that cross the proposed mine site. These conditions greatly increase the risk of acid mine drainage.

“If we charted the Yellow Dog Plains on a scale from one to one hundred, with one being a desert and one hundred being on the edge of a body of water, the Eagle Project is very near to one hundred,” said Dick Huey, co-founder of Save the Wild UP, an environmental watchdog group strongly opposed to the Eagle Project.

According to a study by James Kuipers, a consulting mining engineer for the Center for Science in Public Participation, and Ann Maest, a geochemist for Buka Environmental, most hard rock mines—mines that contain relatively hard metals and minerals such as gold, copper and nickel—fail to meet water quality standards. Out of the 25 mines studied, all were predicted by the mining companies to meet water quality standards set by permits and law. But the study found that 76 percent later failed to comply with those standards. The rate of failure increased dramatically as the amount of water near the mine increased and when both surface and ground water were present.

Despite the risks, Jon Cherry, project manager for the Eagle Project, believes it will be safe. Cherry, an environmental engineer by trade, says he has dedicated much of his career to making mining as safe and environmentally friendly as possible. He cited the success of the Flambeau Mine in Wisconsin, which also came very close to water, as proof that sulfide mining can be done cleanly. According to Cherry, the water quality pre and post-mining of the Flambeau River, which is very near the mine, is the same.

Al Gedicks, a professor of sociology at the University of Wisconsin La-Crosse, disagrees. “There are increased levels of heavy metals in the water,” said Gedicks. “The Flambeau mine did pollute.” According to Gedicks, Kennecott claims there was no pollution because the levels of heavy metals fall within the legal limit.

Proponents argue there are many restrictions, regulations and laws that protect and preserve the people and the environment near the mine. In December 2007, Kennecott’s applications for mining, air quality and groundwater discharge were approved by Michigan’s Department of Environmental Quality. The National Wildlife Foundation, the Keweenaw Bay Indian Community, the Yellow Dog Watershed Preserve and the Huron Mountain Club quickly sued the department to stop the project.

“There are problems with all three permits,” said Michelle Halley, an attorney for the National Wildlife Federation. Those problems include the dumping of treated waste-water from the mine, the creation and dispersal of hazardous dust and the size of the area impacted by the mine, she said.

But like most details surrounding the mine, there is disagreement. Cherry argued that the waste-water does not pose a problem because it must meet higher standards than the county’s drinking water.

“I have to store all of my treated water inside because if it’s exposed to rain it won’t meet the standards in the permit,” he said. “Rain will actually pollute my waste-water.”

The hazardous dust, which contains heavy metals, is another contentious issue. Once in the air it could be carried for miles by winds and cause health problems. Both parties have used computer modeling to estimate dust impacts, but their results don’t match.

Both sides have also used computer models to estimate the size of the area impacted by the mine. Again, the results don’t concur. “It’s in Kennecott’s interest to keep the impacted area small,” Halley explained. “They have no science to back up their claims of the area’s size.”

An Uncertain Future
Both sides believe scientific studies and facts support their positions, but whose numbers and studies are correct? In the end, “How much pollution will the mine produce?” may not be the most important question.


More than 40 Michigan professors recently endorsed a letter that questions the most basic reasons for developing a new mine. It asks whether Michigan needs any new mining and if finding more nickel is important. The letter was written by Michael Nelson, an assistant professor at Michigan State University, and John Vucetich, an assistant professor at Michigan Technological University. It was sent to Michigan governor Jennifer M. Granholm, as well as Michigan’s departments of Natural Resources and Environmental Quality.


In the letter Nelson says that Michigan should focus its attention on developing a sustainable economy, not searching for a metal that will soon run out. Additionally, the mine is only expected to operate for eight years, so the jobs and revenue it produces will be short-term. In the letter, Nelson and Vucetich compare this scenario to a heroin addict shooting up.

“It’s not a solution to [the addict’s] problem, it’s only a fix,” Nelson said. “This mine is Michigan’s fix of nickel.”

Emily Whittaker, the program administrator for the Yellow Dog Watershed Preserve, agrees. “Our organization focuses on the environment,” Whittaker said. “But this issue goes much further.”

Today, rows of identical, abandoned houses, leftover smoke stacks and collapsing ruins are all that’s left of much of the UP’s mining industry. Ghost towns are scattered throughout the area, and Whittaker is afraid that the Eagle Project will leave more.

Cherry disagrees. He sees nickel, which is used to make hydrogen fuel cells, light-weight metals and desalinization plants, as part of a more sustainable economy. “Nickel plays a very important role in green energy,” he said.

He adds that the short-term boost from the project can lead to long-term benefits for the surrounding communities, again citing the Flambeau Mine as an example.

“The people of Wisconsin had enough foresight to take the taxes and fees they collected from the mine and invest them,” Cherry said. “They used the money to bring in new businesses, and there are more jobs today than while the mine was operating.”

If approved, the Eagle Project will most likely be the first of many new mines in the UP. Kennecott has already released tentative plans for six additional projects.

“This will be the establishment of the future of mining in the UP,” Cherry said. Only time will tell what that establishment will bring.

Marc Erbisch is a senior majoring in journalism and anthropology at MSU. This is his second appearance in EJ. Contact Marc at erbischm@msu.edu