State OKs $50 million grant for Copperwood Mine
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IRONWOOD -- The Michigan Economic Development Corporation's Strategic Fund Board voted Tuesday to approve two grants related to Highland Copper's Copperwood Mine project in Gogebic County near Porcupine Mountains Wilderness State Park -- a $44.9 million Strategic Site Readiness Program Grant to Highland Copper for eligible activities to support the company's copper mining facility in Gogebic County and a $5 million SSRP Grant for public infrastructure improvements and related expenses.
The MEDC's Michigan Strategic Fund Board is a 12-person body made up largely of businesspeople appointed by the governor of Michigan.
Highland Copper had previously failed to secure state funding on several occasions.
The vote occurred after nearly two hours of in-person public comment, where each person was allotted 3 minutes to speak. Public comment was overwhelmingly against the mine, but began with Upper Peninsula legislators, who had come to speak in support of the grants.
State Rep. Greg Markkanen, R-Hancock, whose district is the location of the mine project, spoke of "overwhelming support locally" for the grant, saying that "this investment means renewed hope for Gogebic County and the Western U.P."
State representatives Dave Prestin, R-Cedar River, Karl Bohnak, R-Deerton and state Sen, Ed McBroom, R-Waucedah Township, also spoke in support of the project.
The rest of the in-person public comment period was made up of people speaking against the mine. Commenters came from all over Michigan and elsewhere, some from as far as Milwaukee.
"Public funds have been used for 20 years to build a world-class tourism brand (Pure Michigan), on one hand, while simultaneously considering funding a foreign corporation to degrade the very asset that makes that brand valuable," said one public commenter.
Other comments referenced the Porcupine Mountains' status as the most visited state park in the state, various environmental concerns, tribal opposition to the project and the 469,000 people who signed a petition against the mine.
"The proposed infrastructure, such as cell towers, heavy industrial roads and power grid expansion would serve principally to enable the development of the controversial project and inexperienced foreign company's plan to build their first ever mine right next door to Michigan's most beloved old-growth in Porcupine Mountains State Park," said a representative from the Michigan Environmental Council.
" … Ship the copper out of the country with no promise of return and store over 30 million tons of waste in an unprecedented proximity to Lake Superior, visible from the region's most iconic overlooks.
"I call this a toxic waste site since 98.5% of the over 30 million tons of material extracted will be toxic waste -- lead, cadmium and arsenic left in a 300-acre liquid tailings dam designed to withstand 100-year storm events," said another commenter.
"There have been two 1,000-year storm events in the last 10 years in this region."
There were 127 public commenters registered to comment online, but were made to wait until the end of the meeting as the MSF board determined they would "interfere with the orderly conduct of the MSF Board meeting."
Michelle Grinnell, chief communications and attraction officer for the MEDC, presented the MEDC's recommendation to the board, saying that "this project represents one of the largest private sector investment opportunities in Michigan's Western Upper Peninsula in decades."
Grinnell cited the reported 380 high-paying jobs the mine will bring, as well as the 300 construction jobs and the $50 million in additional revenue that the surrounding community is projected to receive. She gave the MEDC's recommendation to vote in favor of both grants.
Grinnell brought in Barry O'Shea, CEO of Highland Copper, who said that "we know and want to acknowledge there are many people who have environmental concerns on this project. It remains important to set a clear fact pattern, because no one is interested in harming our natural resources, our tourism economy or the long-term well-being of our state or the Great Lakes."
O'Shea spoke of Highland Copper's grants from the Michigan Department of Energy, Great Lakes and Energy, as well as the environmental mitigation work he says has "been built into project planning and engineering since the beginning stages of development."
"We are particularly happy with the vast support from local, state and federal levels," said O'Shea. "And I stress local support. I know many have remained online to provide virtual comment from the region. They are not in the room because they live year-round in the western U.P. That is where they're from."
O'Shea seemed to assume in this statement that the 127 public commenters who had been unable to speak before the board's vote would be speaking in support of the project.
"If we don't receive the grant, the viability from a financial perspective is incredibly more challenging," said O'Shea.
Grinnell also brought Garth Stengard, manager of the Gogebic County Road Commission, who spoke about how the $5 million infrastructure grant would help pay for the improving of Gogebic County Road 519.
Marty Fittante of InvestUP also spoke, saying that "Along with the mine jobs, increasing the population with young, talented individuals is a trickle-down effect that will have on local communities, including hotels, restaurants, stores, governments and the schools."
"It's frankly insulting to hear voices from elsewhere claim they love the U.P., our home, more than we do," said Fittante, again seeming to assume that the 127 public commenters, many likely U.P. residents who had been unable to make the trip to Lansing, would be in support of the project.
Before the vote, several MSF board members gave comments.
"We have been weighing many different viewpoints," said MSF board member Dr. Britany Affolter-Caine. "There are a lot of competing interests in this case. And at the same time, there are also some competing perceptions of risk.”
"This opportunity, this request came to us before," said MSF board member Dimitrius Hutcherson. "And it was denied. It was denied for a number of reasons. There was a lot of concern ... and a lot of work has been done to allay a lot of the concern."
When the board voted, all voted in favor apart from members Susan Roath and Melissa Tellier, who voted "no."
The completion of the vote drew strong reactions from the assembled crowd, who could be heard expressing their displeasure.
"How much did they give you?" one person could be heard shouting.
"With their decision, the Michigan Strategic Fund has steamrolled over the clear will of the people and prostituted themselves to foreign-owned destructive industry," said a statement released by the advocacy organization Protect the Porkies after the vote.
"They have desecrated the Pure Michigan brand and will be remembered by future generations as traitors. It's time to escalate. Please find time to join us this weekend and in coming weekends at the protest encampment next to the mine site."
Annie Lippert can be reached at 906-228-2500, ext. 550. Her email address is alippert@miningjournal.net.