Antofagasta Denied Permission to Renew Two Minnesota Licenses -- Update
December 16 2016 - 7:43AM
Dow Jones News
(Adds further detail and updates share price.)
By Olga Cotaga and Ian Walker
LONDON--Antofagasta PLC (ANTO.LN) said Friday it has been denied
permission to renew two of its long-held federal mining leases in
the iron range region of north-eastern Minnesota.
The company said its fully owned Twin Metals Minnesota LLC was
in the early stages of a proposal for an underground copper- and
nickel-mining project.
Antofagasta didn't give any reason why its request was denied
but the U.S. Department of Agriculture cited the potential risk of
environmental contamination of the surrounding watershed as a key
concern.
The department said the two leases, initially issued in 1966 and
then renewed in 2004, would have allowed for the mining of copper,
nickel, and associated minerals from the leased lands. However, it
said no mineral production has occurred on either lease since the
original date of issue.
"Denial of the leases is inconsistent with federal law, the
terms of leases themselves and the federal government's established
precedent in supporting and renewing the leases over five decades,"
the company said.
"Twin Metals is committed to progressing the project and will
continue to pursue legal avenues to protect its contractual mineral
rights," its added.
The two leases are located directly adjacent to, and within
three miles of, the Boundary Waters Canoe Area Wilderness, an area
in northeastern Minnesota comprised of more than a million acres of
lakes and forests.
"It is well established that acid mine drainage is a significant
environmental risk at sulfide ore mine sites like the one proposed
for these leased lands and in a water-based ecosystem like the
Boundary Waters because contaminated water could have dramatic
impacts to aquatic life, sport fisheries, and recreation-based uses
and communities," the Agricultural department said.
Shares at 1250 GMT down 11 pence, or 1.61%, at 672.5 pence.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749 and
Olga Cotaga at olga.cotaga@wsj.com
(END) Dow Jones Newswires
December 16, 2016 08:28 ET (13:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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