For nearly 10 years, Kennecott Exploration explored the potential for mineral and metal production in Michigan’s Upper Peninsula to meet industry’s needs for these materials. In 2002, exploration efforts led to the discovery of a valuable nickel and copper deposit (termed “Eagle”) located in Michigamme Township, about 25 miles northwest of the City of Marquette. Eagle Project Location

The project was formally handed over to Kennecott Minerals for evaluation in April 2004 for detailed evaluation. Following various environmental, engineering and economic studies, Kennecott Minerals submitted permit applications in February 2006 for review by the Michigan Department of Environmental Quality. Permit applications — including those related to air quality, water discharge and mining — are intended to meet or exceed standards set forth under Michigan’s newly enacted hard rock mining law.

Kennecott aims to develop a small underground mine to access the Eagle mineral deposit, which encompasses only six of the 1,600 acres that Kennecott has long owned or leased in the area. The entire project site will require less than 90 acres. Once brought to the surface, nickel and copper would be transported by truck, then by rail, to offsite processors of these materials.

Much of the nearly 1,600 acres owned or leased by Kennecott for the Eagle Project would remain available for camping and other recreational activities during operations, just as they always have. The land surface, for the most part, would remain undisturbed by the project, as underground mining differs significantly from the quarry type mining most familiar to U.P. residents. The relatively small footprint of the project means less impact to the environment and community.

Area residents will recognize little or no noise or odor from mining operations. Chemical processing of the ore will not occur at the site, but will be done by processors located elsewhere. Ore-carrying trucks, familiar to area residents, would likely follow the AAA and County Road 510 to County Road 550 to area rail connections, which would then transport the ore to existing offsite processing facilities. Use of existing truck routes will help ensure public safety and minimize burden on area roads. The company is currently exploring other transportation routes suggested by the public.

It is expected that approximately 300 million pounds of nickel, along with approximately 250 million pounds of copper and minor amounts of other minerals will be produced. These minerals are used in state-of-the-art technologies that many Michigan-based manufacturers rely on to drive our state’s economic engine.

Environmental excellence is a Kennecott Minerals hallmark, and all Kennecott Minerals operations are required to obtain ISO certification. Kennecott Eagle Minerals has earned ISO: 2004 certification for the management process undertaking by the company during the development of the Eagle project.