FAQ
What is the Eagle Mine and why is it needed?
Who is responsible for enforcing mining regulations to ensure compliance with laws?
Do Eagle’s permit applications meet the rules and regulations of Michigan’s Metallic Hard Rock Mining Law?
How is the financial assurance amount determined?
Will the Michigan Natural Resources Trust Fund (NRTF) benefit from the Eagle Mine?
How is Rio Tinto ensuring an environmentally safe mine?
Has there ever been a metallic mineral mine that succeeded in protecting the environment?
What benefits will the Eagle Mine bring to the local community?
Is the land Rio Tinto owns or leases covered under the Commercial Forest Reserve Act, which provides public access for hunting, fishing, etc?
What percentage of jobs will be drawn from the local community?
What is nickel used for?
What is a metallic mineral mine?
Why are metallic mineral mines important?
What is the Eagle Mine and why is it needed?
Rio Tinto is a leading producer of critical minerals and metals needed by a variety of industries to produce the things society needs and uses. Nickel, one of the most important of such minerals, is used to make everything from cars and appliances, to aeronautics and high tech medical instruments, to household batteries and environmentally friendly hybrid cars. The Eagle Mine in northern Marquette County is the only primary nickel mine in the U.S., and will generate approximately 300 million pounds of nickel. Eagle will employ approximately 235 people and generate substantial economic activity for area businesses. Other communities where Rio Tinto has operated mines have experienced economic vigor that began with the mine, but has extended long after mine closure.
Who is responsible for enforcing mining regulations to ensure compliance with laws?
The Michigan Department of Environmental Quality (MDEQ) has primary responsibility for enforcing compliance with all air, water and mining regulations, as well as mine reclamation once mining is complete, as prescribed by statute and promulgated rules.
The metallic mineral mining regulations are administered by the Office of Geological Survey (OGS) pursuant to the statutory requirements of Part 632, of the Michigan Natural Resources and Environmental Protection Act, 1994 PA 451, as amended MCL 324.63201.
The Mine Safety and Health Administration (MSHA) enforces health and safety procedures for all underground operations at Eagle.
Do Eagle’s permit applications meet the rules and regulations of Michigan’s Metallic Hard Rock Mining Law?
Yes. Rio Tinto designed the mine to meet or exceed the rules and requirements of the Michigan Non-Ferrous Metallic Mining Law and has received approval on all state permits. Rio Tinto strongly supported the establishment of strict standards and regulations for non-ferrous metallic mining before submitting applications to the MDEQ for the Eagle Mine and Humboldt Mill. These regulations provide the company with clear standards that must be met for mining to occur; they provide the public with assurances that requirements for environmental protection are being met.
How is the financial assurance amount determined?
Michigan law provides a specific methodology for determining the appropriate amount of financial assurance of each proposed mining project. For Eagle, an assurity bond for $18 million on the mine and $5.2 million on the mill has been paid by Rio Tinto with the State named as beneficiary.
Will the Michigan Natural Resources Trust Fund (NRTF) benefit from the Eagle Mine?
Yes. Approximately half of the minerals to be produced by Eagle Mine are leased by Rio Tinto from the State of Michigan. This portion of our production will result in royalty revenues to the NRTF, determined by commodity prices at the time the minerals are processed. The NRTF provides a source of funding for public acquisition of lands for resource protection and public outdoor recreation. Funding is derived from royalties on the sale and lease of state owned mineral rights.
How is Rio Tinto ensuring an environmentally safe mine?
Environmental responsibility and protection is a priority. In line with our Environment Policy and Associated Standards, Rio Tinto has developed and implemented a number of programs at Eagle focused on air quality, ecosystems services, biodiversity, climate change, energy, land, water, waste and closure. These programs include input from our local communities as well as from experts in these fields.
Rio Tinto has studied the orebody and surrounding area to determine the best approach to development with minimal surface disturbance. Rio Tinto has also developed demonstrated measures that protect important groundwater and surface water bodies. Two separate but complementary systems — a multi-lined storage area for rock brought to the surface for temporary storage and a water treatment plant — work together to ensure water discharged back to the environment is safe. Both were created to prevent any water that comes into contact with the development rock from entering groundwater or nearby surface water bodies. Water from the site will be treated to better than drinking water quality before being discharged.
Has there ever been a metallic mineral mine that succeeded in protecting the environment?
Yes. The Flambeau Mine in Ladysmith, Wisconsin was successfully designed, operated, and reclaimed a sulfide host metallic mineral mine while protecting the environment from adverse impact. Protecting groundwater, the Flambeau River, which runs within 140 feet of the former mine, and other aquatic features started with Rio Tinto’s mine design that included key measures for preventing and managing potential Acid Rock Drainage. The result has been positive: water quality analysis of the Flambeau River, both upstream and downstream of the mine site is consistent and unaffected by the mine. While water chemistry in the mine’s backfill pit is different, it is within a range that it is protective of the surrounding environment, as demonstrated by the water quality in the Flambeau River. The Flambeau Mine remained in compliance with state permit standards for the 15 years that have included operations and the ten years since the mine’s closure — no permit violations ever occurred.
What benefits will the Eagle Mine bring to the local community?
The Eagle Mine can meet the local communities’ greatest ongoing need: the creation of local jobs and tax revenues. In today’s economy, business development is critical to future economic growth – both locally and statewide. Eagle Mine will employ more than 200 individuals directly involved in the project, with a goal of at least 75 percent of its employee base drawn from the local community. The estimated payroll without benefits is $21 million per year during operations, representing new dollars in the community that will be spent by families locally on food, clothing, cars, etc. Experience shows Rio Tinto’s project will be a catalyst for other business development and cultural growth that can be sustained when mining is completed.
Is the land Rio Tinto owns or leases covered under the Commercial Forest Reserve Act, which provides public access for hunting, fishing, etc?
Rio Tinto owns or leases approximately 1,600 acres in northern Marquette County, of which fewer than 130 acres — less than 8 percent — will be used for the Eagle Mine. Other than the operational areas, the rest of Rio Tinto’s land will remain open to activities traditionally enjoyed by residents and visitors, such as hunting, hiking, fishing, snowmobiling, etc.
What percentage of jobs will be drawn from the local community?
Rio Tinto’s goal is to hire 75 percent of its employee base from the local community and our track record demonstrates this promise. At Flambeau, a Rio Tinto mine in Wisconsin, the actual number was approximately 84 percent. Rio Tinto expects similar percentages to apply at peak employment when the Eagle mine is in full operation. With the U.P. history in mining we will have a wealth of skilled and experienced miners, engineers, mechanics and other qualified workers with the right knowledge, and responsibility for safety we seek.
What is nickel used for?
Nickel is one of the most important and strategic base metals used in manufacturing materials for our society. It is the main mineral mixed with iron to create stainless steel. Nickel is what gives stainless steel its exceptional strength and corrosion resistant properties. From common household batteries to some of the most advanced technologies of today’s society, the modern uses of nickel are vital. This essential metal includes applications by the health care industry to create stainless steel tools for surgery, a demand for which has increased substantially in recent years. Nickel also includes commercial and industrial kitchen industries; aeronautics manufacturers; computer makers; and advanced batteries critical in gasoline-electric hybrid, environmentally friendly cars. These, along with many other products are critical to our nation’s economy.
What is a metallic mineral mine?
A metallic mineral mine is an orebody formed in the presence of naturally occurring sulfur. This type of orebody contains minerals such as pentlandite (a nickel mineral) and chalcopyrite (a copper mineral). Sulfide is not mined but is host to these important minerals and metals.
Why are metallic mineral mines important?
Metallic mineral mines are important because the overwhelming majority of base metals such as copper, nickel, silver, lead and zinc come from sulfide orebodies. These metals are essential to our economy and provide the foundation for the production of basic construction materials, electronics, and power distribution. Copper is used to conduct electricity in every home and office building that uses power. Nickel is an essential component of stainless steel that is used in everything from medical equipment, to high strength steel applications, to batteries for gasoline-electric hybrid cars.
