Rio Tinto, an international mining group, announced June 15 they would put $469 million into the construction of a nickel and copper mine near Marquette, under its wholly owned subsidiary,
Kennecott Eagle Minerals Company.
The mine is to be located between Marquette and Big Bay, and the associated construction also includes facilities in Champion at the former Humboldt Mill.
The announced funding includes construction of a new underground mine, surface facilities to service the mine, rehabilitating the old mill, and developing an access road.
"This capital investment represents a major commitment to Michigan by Rio Tinto," says Jon Cherry, general manager of Kennecott Eagle Minerals. "We believe our operations can and will make a positive contribution to the area's struggling economy and challenged job situation, while demonstrating our commitment to environmentally responsible and community focused operations."
Construction of the mine had been delayed since 2008, due to the worldwide financial crisis, the company says.
Work on the mine and mill portions of the project will begin this year, with the construction of a water treatment plant and environmental control systems. Site preparation at the mine and demolition work at the mill also are scheduled. The entire building plans run through 2013, with mine production slated for late 2013.
Kennecott Eagle Minerals says the mine and mill will create about 700 new jobs. More than 400 of these are in the short term during construction and more than 200 will come from operations once the mine is running. The company has promised to make a minimum of 75 percent of these local hires.
The Eagle mine will be the only primary nickel mine in the U.S., and is expected to produce 300 million pounds of nickel, and 250 million pounds of copper.
Writer: Sam EgglestonSource: Jon Cherry, Kennecott Eagle Minerals
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