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What is the Eagle Project and why is it needed?
What are the permit applications that have been submitted?
What is the process for the MDEQ to review the permits?
What opportunities are there for public input on the project, permit applications?
Who is responsible for enforcing mining regulations to ensure compliance with laws?
Do Kennecott’s permit applications meet rules and regulations of Michigan’s new metallic hard rock mining law?
Where can Kennecott’s permit applications be viewed?
How is the financial assurance amount determined?
Will the Michigan Natural Resources Trust Fund benefit from the Eagle Project?
How is Kennecott ensuring an environmentally safe mine against factors such as Acid Rock Drainage?
Has there ever been a sulfide mine that succeeded in being environmentally protective?
What benefits will the Eagle Project bring to the local community?
Is the land Kennecott owns or leases covered under the Commercial Forest Reserve Act, which provides public access for hunting, fishing, etc?
How many jobs will be created by the development of the Eagle Project?
What percentage of jobs will be drawn from the local community?
What is nickel used for?
What is a sulfide mine?
Why are sulfide mines important?
What are the primary environmental issues related to sulfide mining?
Can sulfide mining be done in a manner that protects the environment?
In your design process for dealing with storm water, what factor do you apply for dealing with 100-year event? Considering a max snow load with an extreme rainfall event?

What is the Eagle Project and why is it needed?
Kennecott 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. If developed, the Eagle Project in northern Marquette County would be the only primary nickel mine in the U.S., generating approximately 300 million pounds of nickel, which would be sent to processing facilities elsewhere. The underground mine would employ over 100 mostly local people and generate substantial economic activity for area businesses for the next 6 – 8 years of active mining and reclamation activities. Other communities where Kennecott has operated mines have experienced economic vigor that began with the mine but has extended long after mine closure.

What are the permit applications that have been submitted?
Kennecott has submitted to the Michigan Department of Environmental Quality applications necessary to obtain permits to further develop a proposed nickel/copper mine in Marquette County. Three applications covering, air, water discharge, and mining, have been presented to the MDEQ for review and approval.

What is the process for the MDEQ to review the permits?
The MDEQ has established a specific process and team of experts to review applications submitted for potential non-ferrous metallic mining projects. Upon receipt of applications, the MDEQ will determine their administrative completeness. The agency makes applications available for public review and comment. After a preliminary decision has been made by the MDEQ, additional public reviews, hearings and comments will occur followed by a final decision on issuing the permit.

The MDEQ’s mining application review team includes professionals who review the application with emphasis on all critical issues, including geochemistry, hydrogeology, waste rock liner system, surface hydrology, and aquatic resources, among others.

For more information about how regulatory review is conducted in Michigan, see the MDEQ’s website at www.michigan.gov/deq and click on “Land”, then “Metallic Mining”.

What opportunities are there for public input on the project, permit applications?
Kennecott is committed to ensuring open exchange of information on the Eagle Project with the community and all stakeholders. A variety of opportunities continue to be made available to ensure public involvement in the project, including a community advisory group, local government meetings, news media outreach, business and civic group meetings and simply by contacting Kennecott directly. The MDEQ will hold public meetings and hearings on the permit applications, as required by law.

Who is responsible for enforcing mining regulations to ensure compliance with laws?
The Michigan Department of Environmental Quality 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.

Do Kennecott’s permit applications meet rules and regulations of Michigan’s new metallic hard rock mining law?
Yes. Kennecott has designed the project to meet or exceed the rules and requirements of the Michigan non-ferrous metallic mining law, but the final determination will be made by the MDEQ. Kennecott strongly supported the establishment of strict standards and regulations for nonferrous metallic mining before submitting applications to the MDEQ for its proposed Eagle Project. 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.

Where can Kennecott’s permit applications be viewed?
A hard copy of Kennecott’s air and water quality and mining permit applications area available locally for public review at the Peter White Library, 217 N Front Street, Marquette, Michigamme Township Hall, 202 W Main, Michigamme Township, Powell Township Hall, County Road 550, Big Bay, Michigan DEQ, Upper Peninsula District Office, 420 5th Street, Gwinn, and Michigan DEQ, Lansing Office, Constitution Hall, Office of Geological Survey, 525 W. Allegan, Lansing. The applications will also be available in .PDF format on the Michigan Department of Environmental Quality’s website: www.michigan.gov/deq, which can also be accessed through Kennecott’s website: www.kennecottminerals.com.

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 the Eagle Project, Kennecott has proposed a financial assurance of approximately $12 million as an initial amount, based on the requirements of law. The final amount will be determined by MDEQ as part of the mining permit.

Will the Michigan Natural Resources Trust Fund benefit from the Eagle Project?
Yes. Approximately half of the minerals to be produced by the Eagle Project are leased by Kennecott from State of Michigan. This portion of Kennecott’s 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 Kennecott ensuring an environmentally safe mine against factors such as Acid Rock Drainage?
A Kennecott priority is environmental responsibility and protection. Preventing and controlling the conditions that can lead to the potential for Acid Rock Drainage (ARD) to occur is central to the planning and design of the Eagle Project. ARD may occur when rocks naturally containing sulfides are exposed to air and water over time (all three elements must be present), sometimes producing a dilute sulfuric acid. Successful management of this issue first requires a comprehensive understanding the fundamental principles of ARD and the details of local geology — Kennecott has developed expertise and knowledge of both.

A conservative approach to managing ARD is the best approach. While not all rock from the area of the proposed mine contains sulfides, Kennecott will treat it all with the same process to provide the greatest assurance of protection.

Kennecott 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 sulfide mine that succeeded in being environmentally protective?
Yes. Not only has there been, but at its Flambeau Mine in Ladysmith, Wisconsin, Kennecott Minerals is the company that successfully designed, operated and reclaimed a sulfide 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 Kennecott’s mine design that included key measures for preventing and managing for 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. Importantly, 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 Project bring to the local community?
The Eagle Project 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. Kennecott Eagle Minerals’ Project will employ over 100 individuals directly involved in the project, with a goal of at least 75 percent of its employee base from the local community. The estimated payroll without benefits would be in the $8 million - $10 million per year range, new dollars in the community that will be spent by families locally on food, clothing, cars, etc. The capital investment of the Eagle Project is estimated at more than $100 million. Experience shows Kennecott’s project will be a catalyst for other business development and cultural growth that can be sustained when mining is completed after an estimated 6-8 years

Is the land Kennecott owns or leases covered under the Commercial Forest Reserve Act, which provides public access for hunting, fishing, etc?
Kennecott owns or leases approximately 1,600 acres in northern Marquette County, of which fewer than 90 acres — less than 10 percent — will be used for the Eagle Project. Other than the operational areas, the remainder of Kennecott’s land will remain open to activities traditionally enjoyed by residents and visitors, such as hunting, hiking, fishing, snowmobiling, etc.

How many jobs will be created by the development of the Eagle Project?
The eagle project can meet the local communities’ greatest ongoing need: the creation of local jobs and tax revenues. This project represents an investment of more than $120 million, and will create over 100 full-time jobs, as well as generate an additional 300 to 500 indirect jobs. The estimated payroll without benefits would be in the $8 million - $10 million per year range, new dollars in the community that will be spent by families locally on food, clothing, cars, etc. Kennecott Minerals will commit to hire local residents to fill the majority of these positions.

What percentage of jobs will be drawn from the local community?
Kennecott has a goal to hire at least 75% of its employee base from the local community and our track record demonstrates this promise. At Flambeau, a Kennecott Copper mine in Wisconsin, the actual number was approximately 84 percent. Kennecott expects similar percentages to apply at peak employment when the Eagle Project turns into a fully operating mine. 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. Kennecott expects to draw from the vast majority of the Marquette community to fill the Eagle employment.

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 ingredient mixed with iron to create stainless steel. Nickel is what gives stainless steel is 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 joint replacements and lifesaving heart stings; commercial and industrial kitchen industries; aeronautics manufactures; 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 sulfide mine?
A sulfide mine is a mine where the ore body and metals of interest were formed in the presence of naturally occurring sulfur. These sulfide mines produce sulfide type minerals such as pentlandite (a nickel mineral) and chalcopyrite (a copper mineral). A sulfide mine does not mine sulfide. It mines precious and base metals that are contained in a sulfide mineral matrix.

Why are sulfide mines important?
Sulfide mines are important because the overwhelming majority of base metals such as copper, nickel, silver, lead and zinc come from sulfide ore bodies. These metals are essential to our economy as they 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 medial equipment to high strength steel applications to batteries for gasoline-electric hybrid cars.

What are the primary environmental issues related to sulfide mining?
A Kennecott priority is environmental responsibility and protection. Preventing and controlling the conditions that can lead to potential environmental issues such as Acid Rock Drainage (ARD) is central to the planning and design of the Eagle Project. ARD may occur when rocks naturally containing sulfides are exposed to air and water over time (all three elements must be present), sometimes producing a dilute sulfuric acid. Successful management of this issue first requires a comprehensive understanding the fundamental principles of ARD and the details of local geology — Kennecott has developed expertise and knowledge of both.

Kennecott 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.

Can sulfide mining be done in a manner that protects the environment?
Yes! Not only can sulfide mining be done safely from a theoretical sense, Kennecott Minerals has demonstrated that it can be done. Kennecott Minerals operated the Flambeau Mine in Wisconsin from 1993 through 1997. This was a sulfide ore body with copper as the primary metal of production, parts of which produced ARD that was contained and treated. This mine operated within 140 feet of the Flambeau River. Based on monitoring results during operations, as well as monitoring in the 10 years since closure, the Flambeau River remains fully protected and the mine continues to meet all environmental permit conditions. This mine also received the first Sustainable Development Award (July 9, 2004) for a mine from the U.S. Department of the Interior.

In your design process for dealing with storm water, what factor do you apply for dealing with 100-year event? Considering a max snow load with an extreme rainfall event?
Storm water management designs vary based on site-specific conditions. In many instances KMC will design for greater than a 100-year flood event on top of a maximum snow pack. The design of the tailings impoundment at KMC’s mine near Ridgeway, South Carolina, allowed the impoundment to handle up to 44 inches of precipitation during a 24-hour period. This was calculated to be a Probable Maximum Precipitation (PMP) event, even more conservative than a 10,000-year storm event, which is the design criterion used for all other water structures at Ridgeway.