February 16, 2007

The Department of Environmental Quality announced today it will hold a public hearing in Lansing on a proposed decision to approve a mining permit to the Kennecott Eagle Minerals Company to conduct nickel mining operations at the proposed Eagle Project mine. The Lansing hearing will be held March 12 at the Lansing Center from 1:00 p.m. to 4:30 p.m. and 6:00 p.m. to 9:00 p.m.

The Eagle Project Mine proposes to produce nickel, copper, and other metals from a small but rich metal sulfide deposit located about 25 miles northwest of Marquette. Kennecott would use underground mining methods that are designed to avoid impacts to the nearby Salmon Trout River or adjacent lands. The entrance to the mine, as well as the associated surface facilities, would be at a remote upland location, and the ore would be transported by truck and rail to a processing site in Ontario. Kennecott proposes to backfill the mined-out areas with waste rock, gravel, and cement and reclaim the entire area to its original condition at the conclusion of mining.

The proposed mining project is the first to be subject to Michigan's new Nonferrous Metallic Mineral Mining rules that were enacted in December 2004. The rules, among the most stringent in the nation, were drafted by a multi-stakeholder work group led by the DEQ in response to concerns over potential environmental impacts from mining of metallic sulfide ores.

The DEQ has already scheduled a public hearing in Marquette on
March 6, 7, and 8 at Northern Michigan University's Don H. Bottum University Center. This additional hearing in Lansing is being held as an opportunity for further comment and review of the technical merits of Kennecott's application. The DEQ made the proposed decision to grant the permit on January 9, 2007, following extensive review of Kennecott's application by a review team made up of environmental and natural resource specialists from the DEQ, Department of Natural Resources, and outside contractors. The final decision to grant or deny the permit, which the DEQ expects to make later this year, will take into account all additional comments and recommendations received.

The DEQ will accept written comments on the proposed mine permit through April 5, 2007. Comments should be sent to Steven Wilson, Office of Geological Survey, P. O. Box 30256, Lansing, MI 48909-7756; or by e-mail.

Editor's note: DEQ news releases are available on the department's Internet home page at www.michigan.gov/deq.

"Protecting Michigan's Environment, Ensuring Michigan's Future"

Revised February 16, 2007 by Pat Watson