Biden administration cancels leases for controversial copper-nickel mine near Boundary Waters

The move likely kills the project, but Twin Metals vows to fight the decision.

By Jennifer Bjorhus and

January 26, 2022 at 5:30PM

The copper-nickel mine Twin Metals wants to build would sit about 15 miles southeast of Ely, Minn., near the South Kawishiwi River, shown flowing into Fall Lake. (BRIAN PETESON, Star Tribune/The Minnesota Star Tribune)

The Biden administration on Wednesday canceled two federal minerals leases for the proposed Twin Metals copper-nickel mine in northern Minnesota, likely killing a project widely condemned for being too close to the pristine Boundary Waters Canoe Area Wilderness.

The huge underground mine would have tapped major reserves of copper and nickel — minerals key to a low-carbon economy — but also posed serious risks of contaminating the many waters surrounding it with sulfide and toxic heavy metals. Polls showed many Minnesotans did not support creating an industrial operation at a gateway to the federally protected wilderness.

The boreal outback covers more than 1 million acres, a maze of forested lakes, streams and wetlands where motorized boats are not allowed.

The U.S. Department of Interior issued its legal determination Wednesday. Two lawsuits challenging the legality of the minerals leases in Washington, D.C., courts will likely be dismissed. The two minerals leases were essential for Twin Metals, a subsidiary of Chilean copper mining giant Antofagasta, to develop the mine — its first major effort outside Chile.

"The Department of the Interior takes seriously our obligations to steward public lands and waters on behalf of all Americans. We must be consistent in how we apply lease terms to ensure that no lessee receives special treatment," Interior Secretary Deb Haaland said in a statement. "After careful legal review, we found the leases were improperly renewed in violation of applicable statutes and regulations, and we are taking action to cancel them."

The Minnesota Department of Natural Resources, which has been close to starting an environmental review of the mine, said it's reviewing the decision.

"Today's federal action raises significant questions about the feasibility of Twin Metals' project as proposed," the DNR said in a statement.

Twin Metals called the decision politically motivated and vowed to fight.