Tapping the potential of the Duluth Complex
The Duluth Complex contains the world's largest undeveloped deposits of non-ferrous metal. These copper-nickel-cobalt-platinum-palladium-gold deposits are in a belt stretching 30 miles just south of the eastern end of the historic Mesabi Iron Range—the major source of iron ore for the domestic steel industry for more than 100 years.
PolyMet's project is comprised of two significant assets: the NorthMet deposit and the Erie Plant formerly owned by LTV Steel Mining Company, which is an iron ore processing facility six miles west of the deposit, connected by a private railroad.
In the 1940's, prospectors discovered non-ferrous minerals in the Duluth Complex, and several mining companies subsequently explored the area just south of the Iron Range and in a belt toward Duluth. In the late 1960's, United States Steel Corporation discovered the NorthMet deposit. PolyMet leased the property in 1989.
Developing Momentum
Since then, four major developments have given momentum to the project:
In the 1970’s, new standards to limit car exhaust gas emissions created a market for Platinum Group Metals (PGMs)
By the late 1980’s, the state identified commercial grades of PGMs in the Duluth Complex. PolyMet leased the property from United States Steel in 1989.
In the 1990's, hydrometallurgical recovery of metals became commercially established; PolyMet’s ore performed well with this environmentally friendly, energy-saving technology.
PolyMet management recognized the potential of the shuttered LTV facility and bought the assets in 2005, reducing capital costs, simplifying permitting, providing processing equipment and facilities, which will shorten construction.
Protecting the Environment
Environmental review started with a scoping Environmental Assessment Worksheet (EAW), which was publicly reviewed in 2005. Currently, the project is in the Environmental Impact Statement (EIS) process. PolyMet has spent more than $20 million on the EIS process to date and submitted more than 100 technical reports to assist state and federal regulators in preparing the EIS.
Once the EIS is determined adequate, permits can be issued. In all, PolyMet anticipates investing $100 million in capital to protect the environment.
Building for the Future
PolyMet will construct the project in two stages:
Open the mine, upgrade existing facilities and construct flotation cells to produce concentrates.
Construct and commission a new hydrometallurgical plant and finishing facility to produce final products.
Total capital required for both stages, including environmental work, is approximately $600 million.*
*Based on estimate in May 2008 Definitive Feasibility Study update
At full production, PolyMet will produce:
- 36,000 tons of copper, used in construction, plumbing, electrical wiring, power transmission, hybrid cars, other automotive applications and wind turbine generators.
- 7,700 tons of nickel, used in high-strength alloys, stainless steel, batteries and the aerospace industry.
- 360 tons of cobalt, used in super alloys, aircraft engines, cell phone batteries and hand tools.
- 106,600 troy ounces of platinum, palladium, and gold, which are used in catalytic converters, fuel cells, medical treatments, jewelry and electronics.