STATE REP. Tom Rukavina talks with Becky Rom during a break at the county board meeting on Tuesday, Dec. 20.

Morse town hall overflows for county mining resolution debate

by Tom Coombe & Nick Wognum

After several hours of testimony Tuesday in a jam-packed Morse Town Hall, the St. Louis County Board went on record in support of copper-nickel mining in northeastern Minnesota.

But the resolution ultimately approved on a 4-3 vote wasn’t as forceful as a measure originally presented the week before by Ely commissioner Mike Forsman.

Commissioners instead resolved to support “the existing open, transparent and comprehensive environmental review and permitting process in place” for various copper-nickel mining projects proposed for the region and supports “the success of these projects,” contingent upon the approval of all federal and state environmental permits.

A more strongly-worded resolution of support stalled at a Dec. 13 meeting in Duluth, and other county business was put aside for more than seven hours Tuesday, when both supporters and opponents of the measure turned out in full force.

As many as 90 people crammed into the Morse Town Hall at times, and dozens more waited outside for a chance to speak or take in the proceedings.

After hearing from more than 50 speakers, most from outside the Ely area, commissioners adopted a resolution that Forsman said was tweaked in part to gain the support of commissioner Steve Raukar of Hibbing.

Raukar joined Forsman, Virginia area commissioner Steve Nelson and Chris Dalberg of Duluth to form a four-member majority.

Raukar called the vote “symbolic” and said that despite the attention paid to the board’s decision, the fate of proposed mining initiatives in the region rest instead with state and federal permitting agencies.

“We’re not the dog nor are we the tail when it comes to this issue,” said Raukar. “But it deserves our attention today.”

Ely area leaders, mining company executives and lobbyists were among those who spoke in support of the resolution and urged county commissioners to back projects that promise hundreds of new jobs.

They were countered by opponents who charge that copper-nickel mining puts both the region’s environment and tourism economy in peril.

Duluth commissioner Steve O’Neill, who was joined by Peg Sweeney of Proctor and Duluth’s Frank Jewell in voting no, said the county vote was premature.

“Symbols are important,” said O’Neill. “I think there is more research to be done. I’m not ready to support this resolution.”

Jewell called the resolution “bad policy” and that the county was “supporting something that’s in the purview of the state and federal government.”

Foes including Cindy Peterson of Duluth also downplayed the economic impact of proposed new mining projects, pointing to the region’s existing mining economy.

“If mining saves communities, the Range should be thriving,” said Peterson.

But Forsman responded that “mining isn’t as temporary as some people would say.”

“My son is 24 years old and is making 60-some thousand a year in mining,” said Forsman.

Ely area resort owner Steve Koschak reiterated his opposition on environmental grounds.

“It’s not our daddy’s mining,” said Koschak. “This is a mining that will lead to toxic waste.”

Opponents say that projects such as the PolyMet initiative between Babbitt and Hoyt Lakes and the Twin Metals Minnesota project outside of Ely will create sulfuric waste that will damage area waterways.

But PolyMet chief executive officer Joe Scipioni disagreed.

“The technology is there,” said Scipioni. “The process is there to be able to do this… It’s a big deal for the county and it won’t be done unless it’s environmentally correct.

Raukar said he wouldn’t characterize the issue as an “either-or” proposition.

“I think we can have both,” said Raukar. “I want jobs and a clean environment. Mining is a dirty business. In Hibbing we experience dust and delays, but these kinds of trade-offs are the things we live with. Do I have reservations? Yes. But I feel today we have to move forward.”

It was, to say the least, a very long day.

A crowd outside peered in the window, two people sat on the floor in front of the board table. A bus with mining supporters arrived from Hibbing shortly after 8 a.m. and by 8:30 a.m. the room was full.

The first disagreement came over the list of people signed up to speak. Reid Carron became upset when a sign-up list with names already on it was presented. Carron claimed he was at the meeting before those people.

There were over 80 people in the room when the meeting started at 9:40 a.m.

Speaking at the start of the meeting were Morse supervisor Bob Berrini and Ely mayor Roger Skraba.

Berrini said the Morse board voted unanimously in support of copper-nickel mining and that all three supervisors live on a lake.

Berrini also thanked the mining industry and elected officials for the $289 in taconite tax relief he received.

“And anybody here that’s against mining, please if you don’t want that money, send it to the Town of Morse and we’ll pave our roads,” said Berrini.

Skraba said Ely has been a mining town and that numerous public bodies in the area have supported copper-nickel mining. He said he and others believe companies must meet and exceed environmental standards.

“None of us want it to go unless the standards are met and exceeded,” said Skraba. “We care about the environment; we also care about jobs. I’ve watched my community lose people for the last 40 years. We have an opportunity to provide more jobs and more manufacturing in our community with the natural resources. We have logging, we have tourism and we have mining. All three need to be there to support our community. Not one is better than the other.”

Discussion on the resolution got underway at 10:19 a.m., continuing the five hours of testimony from the week before.

Raukar said a Duluth News Tribune article oversimplified the issue as being a choice between clean water and mining. Raukar was also critical of a Mesabi Daily News editorial on the subject, calling it biased.

Forsman read the resolution as it was presented at the board’s Duluth meeting and moved for approval, with Keith Nelson supporting the resolution.

Nelson said he represents 28,000 people and urged people to be civil in the discussion. He said the resolution involved copper-nickel mining, not sulfide mining. Nelson compared the use of the words sulfide mining to “Obamacare” being offensive to some people.

Commissioner Frank Jewell said people who opposed the resolution were civil and said Nelson’s comments on people’s choice of words was not something the board could control.

Rick Canata, the mayor of Hibbing and representing a labor union, said he is for jobs and clean air and water. “I want to make sure this is safe but we need the jobs too,” said Canata. “Wouldn’t we rather have our jobs in Minnesota rather than overseas?”

Reid Carron said he lives in the town of Morse and that he opposed the resolution. Carron said the mining being proposed is sulfide bearing ore. He said this type of mining creates environmental destruction.

Carron also said tourism would end with the industrialization of the area.

Becky Rom, the wife of Carron, spoke and opposed the resolution. Rom said the resolution sounded fine and dandy but that no one knows if the facts are correct. Rom cited the waste rock to be generated by the PolyMet project and said it would “likely damage the water.”

Art Linn of Hibbing spoke in favor of the resolution and said state regulations are in place to protect the environment.

Tony Seme of Ely said “we know how to do it wrong” and cited copper mines in California that have environmental problems. “I don’t want the mines, I need the mines,” said Seme who cited the economic problems in the world today.

Lori Fedo of the Hibbing Chamber of Commerce said non-ferrous was the future of the area and needed for the Iron Range economy.

Bill Whiteside said his family has been in the Ely since the 1800s. He said he was in support of copper nickel mining in the area. “If we stop here and we don’t go on we’ll be very sorry in the future,” said Whiteside.

Andrew Urban said he lived in Eagles Nest township and cited the first day of Hanukkah. He opposed the resolution and said if it can be done right in Minnesota, it must be done wrong everywhere else. He said the reason mining is being done wrong is because of either being done for profit or that it can’t be done right.

John Fedo, an economic development consultant, said there is no easy way to do job creation.

“The bottom line is that at some point we have to believe the science and when you believe the science you have to pull the trigger,” said Fedo. “People have to believe the elected officials can get it right if given the opportunity to get it right.”

Richard Watson of Ely said the issue is sulfide mining and said the resolution is premature.

“I’ve been asking a lot of people if they prefer health or wealth and of course they say health. This full bore charge for jobs, jobs, jobs will not make this a balanced, healthy community,” said Watson.

John Grahek said he was representing the 2,000 men and women for the building trades in northeastern Minnesota.

“We support the mining projects on the Range,” said Grahek. “It’s a good resolution; it makes sense.”

Pamela Thompson said she was from Brimson where she grows wild medicinal herbs. She opposed the resolution and said the area would lose the same amount of jobs to gain the mining jobs. Thompson said resorts on Birch Lake would be lost.

Babbitt Mayor Glenn Anderson distributed a copy of the resolution passed by the Babbitt city council the night before by a unanimous vote.

“We do support this mining operation,” said Anderson. “I have three grown children living in the Cities who I would love to have back in this area…but that is not possible, we do not have the jobs. Peter Mitchell when he came to Babbitt wasn’t on a tourist trip, he was looking to start a mine and he found it.”

Anderson said if people think there is a problem with mining, there are two lakes in the Northshore Mining operation with walleyes, northern and trout in them.

Margaret Hodnik of Minnesota Power and a native of Aurora spoke in favor of the resolution.

“Minnesota Power strongly supports the non-ferrous mining industry,” said Hodnik. “This region including the entire county should be allowed to thrive. This region along with the entire county should be allowed to have healthy rates of employment and highly skilled jobs, outstanding schools and strong physical and social infrastructure that non-ferrous mining employment, mineral leases and taxes would help support.”

Hodnik said her job includes dealing with regulatory agencies.

“I can tell you personally these agencies operate with the highest standards and highest degrees of professionalism and that’s why Minnesota has a national reputation for environmental leadership and quality.

“Beyond that the people that work at our plants and the people that work at the mining companies and really the people in the region have an extremely strong environmental ethos. And they care about what happens because they live here,” said Hodnik.

She also pointed out the state has statutes and rules that require financial assurances, contrary to what some speakers have asserted. And in order for companies like Minnesota Power to have wind turbines, non-ferrous minerals are required.

Babbitt city council member Jim Lassi spoke in favor of the resolution. He said Babbitt is working with the University of Minnesota in looking at what’s going to happen with the Peter Mitchell mine 80 years down the road when it closes.

“We are working in consortium with them. This has never been done before and we hope to have a project that could be a prototype for all mines when we’re done with this. We’re working with the mining company so as they close portions of the pit we’re asking that they slope things and perhaps leave bumps so eventually when the pit fills with water it could be another Lake Tahoe in another 80 years,” said Lassi.

Rod Eikkila of Hibbing said he started a company that employed 11 people on the Range and supports the project. In reference to anti-mining people went to foreign companies, Eikkila said his company kept the earnings in the area, “although some people may construe anything I do as Finnish.”

Eikkila also said there are misconceptions with the mine in Ladysmith, WI.

“They really didn’t increase the pollution there, it was there before they ever opened the mine up,” said Eikkila.

Jane Koschak of Lake County and owner of a resort on Birch Lake urged the board to vote no and said this mining is too risky.

“What would anyone want this in their backyard for?” said Koschak. “I urge you not to endorse this. Tourism is and remains the very lifeblood of Ely.”

Brad Boos, president of API Electric, said he employs 200 people and that there has been 30 percent unemployment in the construction industry for the past five years. “I think it’s time now to get behind this. We need these jobs and we can do this right.”

Tim Jefferson, a geologist for Twin Metals, pointed out that neither the BWCA or the mineral deposits can be moved.

“It is absolutely imperative that we are able to not create an environmental mess if we mine these things. I believe we have the technology to do that. I say that honestly. I would not be a part of this mineral exploration effort if I didn’t believe that.

“The platinum group elements is a very important part of this deposit. And they are just an incredibly wonderful, environmentally positive mineral once you have it at our disposal,” said Jefferson.

He said the minerals are used in catalytic converters, medical supplies and fuel cells.

“It’s truly a wonder metal. Will we impact? There is nothing in life including breathing in and out without having some impact. It is the mining companies highest interest to get it right,” said Jefferson.

“We are all consumers, we are all members of this planet. We need these metals. We can talk about jobs. The state of Minnesota and the federal government owns the majority of mineral rights in this area. I honestly believe we can mine this right. We will not destroy the Boundary Waters or the South Kawishiwi River,” said Jefferson.

Nancy McReady of Fall Lake and president of Conservationists with Common Sense said the group encourages the development. She said Ely and other communities across the Range are not healthy, citing vacant businesses and declining school enrollment.

“Tourism has an impact of $120 million per year while taconite mining has an economic impact of $3.1 billion a year…unless people are willing to give up cellphones, iPods, etc. we have to mine these minerals,” said McReady.

Bill Skradski, a member of the Ely school board, said he was responsible for the board’s decision to pass a resolution in favor. He said it was done for the survival of a school district and the survival of a community.

Skradski said two mines operated in Ely in the ’50s and no environmentalists said they wouldn’t come to Ely because there were mines there.

“Everyone’s talking about pollution. Ely Minnesota in the 1950s and 1960s had tremendous problems and had a thing called stinky ditch.

Ely was putting raw sewage in water that developed into algae growth and it moved into Fall and Basswood Lake. Ely Minnesota fixed this problem. If a problem is created there’s a solution to it.”

Jeff Anderson, a Duluth city council member, Congressional candidate and a fourth generation Elyite spoke as well.

“I come today to speak in favor of this resolution. For over 130 years we’ve mined in northeast Minnesota and we’ve done so being good stewards of the environment.”

He encouraged the board to think of the next 130 years and to support and invest in these projects for the next several generations.

Bill Erzar, a lifelong resident of Ely, said he worked at Minntac, following his father and grandfather in the mining industry. “We will be able to provide some very good jobs here and produce products for the state and the country,” said Erzar.

He pointed out that countries such as China do not have the same strict environmental laws as there are here.

“We here have the environmental laws on the books to do this in an environmentally responsible manner,” said Erzar.

Vern Baker, president of Duluth Metals, asked for support of the resolution.

“We have been working in the area since 2005 and one of things that has become evident is how blessed northern Minnesota is. In addition to the tremendous resources of the Iron Range which has been going for over 100 years…we are blessed with strategic metals that are in the top of the world class resources as far as the economic value. We see a resource that can provide a tremendous economic benefit for generations, with no doubt.

“As a state we are blessed already with strong regulatory agencies that are used to regulating mining and we have some of the strongest environmental standards in this country, which has some of strongest environmental standards in the world. We are committed to meeting and or exceeding all the standards that are set here in Minnesota to bring what will be an economic powerhouse and can provide a tremendous number of benefits to the people of Minnesota as well as doing it in an extremely environmentally responsible manner.”

Rep. Tom Rukavina spoke in favor of the resolution as well. He said he was proud of the culture of mining in St. Louis County.

Rukavina said the mining industry has been very supportive of the tourism industry with taconite tax dollars.

“I think we’re all environmentalists and I want to tell young people in room in the late 1970s I stood in front of a group and opposed copper nickel mining because at the time the range was booming. My comments then was there’ll be a time we’ll need to mine this ore. It wasn’t at that time. Since then there’s been a lot of changes in mining. The environmental concerns are legitimate and they have to be met. But the bottom line is county built on mining and we need the support of both the Duluth and the Range commissioners.

“We’re going to do things right if we want the windmills and the solar panels and my new knee is filled with molybdenum, titanium and chromium. We need it whether you need a heart monitor or whatever. Let’s do it, let’s do it right here in northern Minnesota.”

Bob McFarlin of Twin Metals Minnesota said his company is pursuing an underground mine 12 miles from Ely and that the company employs 35 Minnesotans and that number will grow to more than 50 in the coming year.

He said since 2006 his company has invested $150 million and is currently supporting 100 direct and indirect jobs.

“We are very proud to be part of the economic community of St. Louis and Lake counties. Our project has the potential to create thousands of construction jobs and hundreds of and possibly thousands of permanent mining jobs for decades for generations of Minnesotans.

“In the next few months the details of our underground mining project will come forward as we move forward in the environmental review process. That process is going to be rigorous, thorough, lengthy and governed by multiple state and federal agencies.

“Our project is going to be held to the strictest of environmental standards and performance. We will meet or exceed those standards. We will not be allowed to move forward unless we can prove we can meet and exceed the regulations.

“This is not a choice between jobs and the environment. We don’t have to make that choice and we’re not going to make that choice. We can protect the environment and we can have economic development.

“We all want good jobs, we all want a strong economy and we all want to protect the environment. Your support is also very important for the local employees, local contractors and local businesses that are working so hard today to achieve this vision of economic growth and environmental protection of this area. They want to know that their elected representatives support their efforts and their dreams for the future.”

Julie Richard of Ely said she was in favor of clean air and water and said the study of this mining was still an experiment. “We are for jobs but we can create jobs in other ways,” said Richard.

Christine Kohl said she grew up on Lake Vermilion but owned land in Lake County and said she was directly threatened by the mining interests in the area.

“The last year that I spent on my land has been the most important and powerful in my life. I know that it will only be over my dead body (my land) will be affected by mining,” said Kohl. She said the board should imagine the earth as their body.

Gena Dupretto of Virginia said she had formed a relationship with the land. She said this type of mining was unprecedented and unproven.

Marcy Wood, a Duluth resident, spoke in opposition saying she opposed sulfide mining anywhere.

Marko Good from Grand Marais said he owned land in St. Louis County. He said he appreciated the board considering not being in support of the “juggernaut coming our way.” He said this type of mining can’t be done without damaging the environment.

Adam Harju of Grand Marais said he lived in northeastern Minnesota for the quality of life. He said he was concerned about clean-up projects from mining.

Frank Moe of Beltrami County thanked the board for letting outsiders speak to the board. He said sulfide mining will pollute the environment.

Bill Travis, president of Idea Drilling, said his company’s 120 employees live in the area. He said 2011 has been very successful with the company growing from 68 to 120 employees and looking to add 20-30 employees.

Travis said Idea Drilling has added four drill rigs at a cost of $4 million and added a new building as well.

“Jobs isn’t just about jobs today, it’s about jobs for our children in the future. It’s also about national security and providing a foundation for long-term financial health. Our existence is tied directly to these projects. Without these projects we wouldn’t have a company.

“We believe in the individuals that make up our regulatory agencies and make up the companies being talked about. A lot of them are Minnesotans tried and true and they’re going to make the right decisions based on the rules that are set forth to make sure our environment is safe and secure not only for today but for the long term. I ask you to consider that this is our environment, the people in this room, the employees of Idea Drilling and the employees of PolyMet, Twin Metals, Duluth Metals and the companies we’ve talked about.

“We ask for your support. Give the regulators, give the companies a chance to prove they can do this. If they can’t do it, it won’t happen.

Virginia city council member Charles Baribeau said he was a pharmacist and noted, “There are sulfates, sulfides and sulfites in medication that you take every day internally.”

Baribeau said PolyMet will create 500 jobs probably at approximately $70,000 a year for a $35 million per year in payroll and to multiply by five the impact in the area plus thousands of spinoff jobs.

“I’m satisfied as a city councilor this is imperative to move forward with this…I have a resolution from the city council of Virginia, this was done in 2008 for PolyMet. They started in 2005, how can it take seven years to get through…that is unthinkable.”

Ely city council member Heidi Omerza said one of the area’s most valuable resources is its children.

“I look around Ely and all I see are children leaving Ely and not returning to Ely or St. Louis County. We need jobs up here so they can stay up here,” said Omerza.

Andrew Slade of the Minnesota Environmental Partnership said he used to live in Ely and served on a committee with Mike Forsman in 1999.

Slade said polling has shown 62 percent of people in the state support sulfide mining with that number rising to 69 percent in northeastern Minnesota.

“However Minnesotans also want to strong environmental standards…80 percent of people in Minnesota support strong environmental standards. I’m really glad to see wording in the resolution that talks about having this resolution be contingent on the approval of all environmental permits. People are concerned about the potential for underlying those standards. Four out of five Minnesotans support requiring better enforcement of existing regulations. There’s a real concern some kind of end run is going to happen.”