Humboldt Mill

Renewing a community asset

February 2009

Introduction

In Humboldt Township west of Marquette, Humboldt Mill remains a fixture of Northern Michigan’s mining history. Its service to several prominent mining companies beginning in the 1950s is weaved into the culture and economy of the local area. Humboldt Mill has remained idle since the mid 1990s, falling into disrepair. Even so, this existing Brownfield industrial site is an important community asset awaiting an opportunity for renewed purpose.

Kennecott purchased the mill in September 2008. The company has applied for state permits necessary to refurbish the facility. Once permits are received, the company intends to invest an estimated $80 million in site clean up, environmental reclamation, and equipment upgrades. Kennecott’s investment in the mill is part of the company’s long range business plans in the UP, and will add to the sustainability of mining operations in terms of social, economic and environmental benefits.

Kennecott plans to utilize the mill for much the same purpose the facility has been used in the past — to crush mineral-containing rock, and concentrate the minerals to be shipped for processing and smelting elsewhere. The start of milling operations are planned to coincide with ore production from Kennecott’s Eagle Mine, which is expected to begin in late 2011, following a two-year mine construction phase.

Planned Activities

Kennecott is committed to a healthy, safe, clean environment in the communities in which it operates. General clean up, asbestos and lead paint removal, and improved storm water management systems are integral to the work that will be done at the mill.

Kennecott will build a water treatment plant at the site as a contingency to ensure water used during the milling process meets state and federal discharge requirements prior to it being returned to the environment.

Approvals Necessary for Operations and Environmental Protections

As Kennecott prepares to operate Humboldt Mill, compliance with state and federal environmental laws and regulations is mandated. Today, far stricter regulations are in place than in the past to protect the environment by ensuring that companies implement appropriate controls and measures. Kennecott will be required to post a bond to insure financial recourses are secured for closure.

Kennecott has applied for permit approvals from the Michigan Department of Environmental Quality to complete refurbishment of the mill and to operate it. Applications have been submitted for air and water protection permits, and for the mill’s operating permit. The applications contain environmental information gathered through studies conducted at the site over the past two years. They also contain planned operation and environmental management controls, facility designs, and contingency plans. Kennecott Eagle Minerals Company permit applications for Humboldt Mill can be viewed at the MDEQ website: www.michigan.gov/deq or at www.eagle-project.com

Millworks

Humboldt Mill will be transformed into a thriving milling operation, with the potential of operating at a capacity three to four times greater than the Eagle Mine.

Kennecott intends to refurbish the millworks within the facility, and will install new equipment and infrastructure necessary to making Humboldt Mill an efficient, modern and safe facility.

Future Operations

Once Kennecott has received necessary permits, the Humboldt Mill will process ore from the Eagle Mine. The process includes crushing rock and grinding it to the consistency of sand. Water will then be added, and the slurry will undergo a process to separate copper and nickel minerals. It will then be filtered and shipped via rail car to processing facilities out of state. Tailings from Kennecott’s operation will be deposited into the existing tailings disposal pit at Humboldt Mill. Environmental monitoring, consistent, with permit conditions will be implemented.

Kennecott Eagle Minerals Company Contacts

Chantae Lessard, Senior Advisor Government and Community Relations,
906-486-1257 or chantae.lessard@riotinto.com

Matt Johnson, Manager Government and Community Relations,
906-486-1257 or matthew.johnson2@riotinto.com

Media Contact: Deb Muchmore,
517-372-4400 or debm@mrgmi.com

Benefits of the Humboldt Mill Restoration Project and Future
Operations

While Humboldt Mill provides added value to Kennecott’s operations, reclaiming the mill site and bringing it back into commercial service holds a number of benefits for the community and area workers, including:

• 50 to 70 full-time local operations jobs, making Humboldt Mill the largest employer in the immediate area
  
• 100 to 200 local contract jobs for site reclamation, and facility rehabilitation and construction
  
• $80 million investment in site work and milling and environmental control equipment, adding to the tax base of Humboldt Township and the N.I.C.E. school district.
  
• Use of an existing Brownfield site
  
• Proper closure plan in place
  
• 50 percent reduction in greenhouse gas emissions
  
• Potential for expanded milling operations to serve possible additional mining interests.

History

Humboldt Mill has a long history in Michigan’s Upper Peninsula mining sector. The mill was constructed in the late 1950s by Cleveland Cliffs and used to process iron ore from the Humboldt Mine until the mid 1970s. The original Humboldt mine created a natural repository for tailings disposal. Callahan Mining later reopened the mill to process sulfide ore from its Ropes Gold Mine until the late 1980s. Mineral Processing Corporation assumed ownership of the mill in the 1990s, using it to occasionally process aluminum flux for several years.  

Kennecott purchased the mill in September 2008, and commenced general site clean up. Over the next 12 months efforts will be focused on obtaining permits for the mill, followed by an additional 12 months of demolition and construction activities to align initial operations at approximately the same time as the Eagle Mine.