UP Fan Club Welcomes You

The UP Fan Club welcomes all residents, friends, relatives and visitors to join as one voice in proclaiming devotion to the health and well-being of this superior peninsula. You will be among friends who share the care and concern for this precious place. It’s easy to become a ‘member’ free of charge or obligation. Either

1. Write a brief note or short story, if you wish, about living, recreating or traveling in the wild UP, in the comment box below. Click “post comment” to save the message onto our website. You do not need to include your name unless you want it published on our site. Your email address is held confidential, and will not be shared or used outside of SWUP, and/or

2. At the bottom of our website home page, click on ‘Join our Action E-list” and receive periodic updates, news and information about issues affecting the Upper Peninsula. And while you are there, also select “Tell a Friend” and help us outreach like-minded citizens around the globe.

As we develop the UP Fan Club, still in its early stages, we welcome your thoughts and ideas about a future online network, where folks from across the globe can share stories about the UP, 24 hours a day. It’s an exciting idea so stay tuned for further developments.

Chinalco’s Stake in Rio Tinto

Say no to Chinalco

Greg Sheridan, Foreign editor | February 26, 2009

Article from: The Australian

IF Kevin Rudd and his Treasurer, Wayne Swan, do not rule against the Chinalco bid for a big stake in the mining company Rio Tinto, and a number of its key Australian assets, they will have been overborne by Chinese intimidation. This is shaping up as a profoundly important inflexion point for Australia, geo-strategically more than economically.

There is no trace of xenophobia in this concern. Chinalco is owned by the Chinese Government and it is an agent of the Chinese Government. As such, it needs to be considered in a completely different light from potential investments by private companies, or even by companies owned or influenced by much smaller governments or by governments with fundamentally different political systems. Chinalco first got interested in Rio to block the bid by BHP Billiton. It acquired its stake in Rio in an aggressive fashion and for strategic purposes, to stop BHP.

For much of the past 12 months the Rudd Government has been telling the Chinese to keep their stake in Rio small. They have given this message quietly, respectfully, mostly in private, with the greatest consideration for Chinese face. They have also allowed the message out in semi-public ways.

Click here to read the entire article

Public Film Series: February 25

Preparing Marquette for a Future Without Oil

As world oil supplies fall, every aspect of life in our community will change.  Learn why, and discover what you can do to prepare for it.

Peter White Public Library Community Room

February 25: Crude Impact

March 25 End of Suburbia

April 29 Money as Debt

May 27 The POwer of Community

June 10 What a Way to Go

Read The Latest Edition of The Splash

Click here to download The Splash

The latest edition of “The Splash: Reporting the Real Risks of Sulfide and Uranium Mining” is scheduled for distribution beginning Wednesday, February 25 and can be found on local newsstands around the local area (and on this website.)

Well researched articles help us to understand what the big mining companies don’t tell us– the real risks of sulfide and uranium exploration and the potential mining risks associated with these ores. Public health and safety risks, economic factors, environmental impacts and personal stories and editorials all combine to provide for you with a comprehensive view of the issue. We’d like to hear your ideas and future article suggestions, so please comment below.

DEQ Holds Hearing on Rio Tinto’s Humboldt Mill Project; Comments Focus on Jobs and Water Quality

by Gabriel Caplett

Humboldt, Michigan – While a blizzard raged in the eastern part of the county, about 100 citizens attended a Michigan Department of Environmental Quality (DEQ) hearing on a mining application for Kennecott-Rio Tinto’s proposed Humboldt Mill project. Comments were starkly divided between those citing perceived job creation as motivation for their support of the project and those concerned about the proposed Eagle Project and potential for water pollution and fugitive dust problems at the site.

The meeting contrasted sharply with hearings held on Rio Tinto’s proposed Eagle Project mine from 2006 to 2007. More than 400 attended one Eagle hearing, with over ninety-percent speaking in opposition to the project.

While not quite the inverse of the Eagle hearings—roughly sixty-percent of public comments were offered in support of the milling project and only about forty public comments were taken—the number in support greatly outnumbered detractors, partly due to the presence of mine company staff and generous amounts of heckling from much of the crowd.

To thunderous applause, one audience member disrupted Big Bay resident and Save the Wild UP (SWUP) director, Kristi Mill’s public comment. The man shouted that discussion of Rio Tinto’s Eagle Mine was “not relevant” to the Humboldt hearing. Moderator, James Collins, replied that Mills had time remaining for her comment and that discussion of Eagle was allowed because the two projects “are related”.

Mills had been questioning why the DEQ was using tax payer dollars to consider Rio Tinto’s Humboldt Mill application while the Eagle Project has been “deferred” indefinitely.

According to Marquette resident and part-time SWUP worker, Teresa Bertossi, “With numerous, unresolved issues revolving around approval of the Eagle Project and serious questions as to whether Rio Tinto will ever fully pursue the project at all, why the DEQ is even considering the Humboldt application at this time is baffling.”

Rio Tinto has had a rough few months.

The company has seen a dramatic reduction in its share value as metal prices have plummeted. Nickel, alone, has fallen from over $25 per pound roughly a year ago to less than $5 per pound today. Burdened with roughly $40 billion in debt, the company announced plans last week, to sell nearly one-fifth of the company to the Chinese government-run aluminum company, Chinalco, currently Rio Tinto’s largest shareholder. Kennecott is, currently, a wholly-owned subsidiary of London-based Rio Tinto.

Economy Main Issue at Hearing

A need for additional area employment and economic growth was, by far, the strongest theme during the hearing. Every comment in support of the project cited the need for more jobs without addressing the Humboldt application specifically. Although not a job creation agency, the DEQ was repeatedly urged to approve the project based on the potential for job creation and economic growth.

County commissioner Deb Pellow said that Rio Tinto’s project is “very important to the county’s overall economic diversification and well being.”

“DEQ: do your job and bring us these jobs,” urged Pellow.

Gerald Corkin, chairman of the Marquette County Board of Commissioners, said the mill project would “provide up to fifty to seventy full-time jobs [and] one-hundred to two-hundred construction jobs.”

“There’s the potential to have mining for another hundred years in the UP,” Corkin speculated.

Joe Derocha, Humboldt Township supervisor, said, “Mining was what raised us, brought us here today.”

“More businesses, more jobs, more people create more economic development,” said Derocha.

Tom Peterson, former Cleveland Cliffs Iron Company general manager and current president of Citizens for Responsible Mining offered his support for the project and represented the hearing’s only complaint coming from a Rio Tinto supporter.

“I did not want to see Kennecott do what they did down in Ladysmith at the Flambeau Mine and that is to high-grade a deposit and leave a lot of ore that could be mined,” said Peterson.

According to Jack Parker, former Rock Mechanics Director at the White Pine Mine, Rio Tinto has similar plans for the Eagle ore deposit. According to Parker, the company plans to leave much of the ore behind, taking only the richest available. Parker maintains that, since much of the ore is owned by the people of Michigan, mining only the high and mid-grades and leaving the rest is “not responsible mining”.

DEQ: “Mercury would likely be a major concern to the public” at Humboldt Mill

According to documents obtained through an open records request, the DEQ believes mercury discharges may be a serious issue at the mill site. Mercury is known to bioaccumulate in fish tissue and is considered a serious danger to public health. According to the DEQ, “There are no proven technologies to consistently achieve [a] low level…Mercury would likely be a major concern to the public and environmental groups.”

At the hearing, some local citizens expressed concerns regarding potential water contamination and fugitive dust control problems at the Humboldt Mill.

Robert Rivera, from Iron River, told the DEQ that he is opposed to Rio Tinto’s milling plans that could process ore currently being explored by Prime Meridian Resources, in Iron County, where he has lived most of his life.

“I grew up in a mining family, in a mining town a quarter of a mile from an abandoned and toxic mine site on the Iron River. It has been remediated and remediated again and it still leaches yellow boy,” said Rivera.

Ely Township resident and miner, Stephen Johnson, said that he lives along the Escanaba River. “Since the thirty years I’ve lived here I’ve seen the Middle Branch of the Escanaba deteriorate as a quality watershed,” Johnson said. “We used to have brook trout galore in it some thirty years ago and I’m not aware of anybody catching a brook trout down by my residency in the last fifteen years.”

Johnson commented on Callahan Mining’s Humboldt Mill application in the 1980s and said that he was “not really happy with the way, at that time, the DNR handled the situation. There were a lot of questions we asked that were never answered.”

“My major concern is here what is the DEQ going to do to ensure that the quality no longer deteriorates anymore and what are we doing to bring it back to the level that it was thirty years ago,” said Johnson.

Incomplete Application?

Only a handful of comments in opposition to Rio Tinto’s milling project highlighted concerns directly related to aspects of the company’s milling application.

Chuck Brumleve spoke on behalf of the Keweenaw Bay Indian Community and raised concerns regarding water inflow through bedrock surrounding the tailings pit. According to Brumleve, “the applicant seems to treat the pit as if it’s a sealed pool or container for sulfide tailings.”

“There is a whole body of current information by the Canadians and the [Environmental Protection Agency] that indicates surrounding rock considerations are the primary consideration in safe tailings disposal, which is not addressed by the applicant in this mining permit application,” said Brumleve.

Brumleve also addressed the need to clean-up existing mining contamination at White Pine, the Keweenaw Copper district and the Empire and Tilden mines before new mining projects are permitted.

Brumleve urged Rio Tinto supporters to “think of the next seven generations and not of your level of affluence here in today.”

Big Bay resident, Cynthia Pryor, raised concerns that construction plans for a protective berm were not included in the Humboldt application and that the plan lacks adequate contingency plans for such events as an “absolute berm failure”.

“It’s very difficult to give public comment on something that’s not included in the application,” said Pryor.

Defending the DEQ

Even the DEQ’s Office of Geological Survey Director, Hal Fitch, took his turn at the microphone to respond to this writer’s public comment on DEQ malfeasance regarding the handling of Rio Tinto’s Eagle Project application. Fitch also defended his role in forming a non-profit corporation with Kennecott and Bitterroot Resources while the Eagle Project application was under agency consideration.

The Northern Michigan Geologic Repository Association (NMGRA) was formed by the DEQ in 2007, with Fitch as president. Meetings were held in the DEQ’s Lansing office building and were attended by paid DEQ and DNR staff. Company representatives expressed an interest in utilizing federal and state grants to fund NMGRA projects.

In an October 2007 e-mail, Fitch acknowledged “that there would be a problem with a state agency forming a corporation” but “came up with an innovative way to address the problem: formation of a non-profit corporation that is not a part of any state agency, but in which OGS is a participating member.”

Hal Fitch resigned from the NMGRA’s board in Fall 2008.

At the Humboldt hearing, Fitch defended his actions: “To suggest that somehow I’m corrupt because I tried to organize a system where we could get the users to pay for something we’re mandated to do, I don’t think that’s very responsible.”

Fitch also defended the actions of DEQ employee Joe Maki, who testified under oath during a recent contested case hearing, that the DEQ did not follow a key provision in Michigan’s new metallic mining law:

“The applicant has the burden of establishing that the terms and conditions set forth in the permit application, mining, reclamation and environmental protection plan and environmental assessment will result in a mining operation that reasonably minimizes actual or potential adverse impacts on air, water and other natural resources and meets the requirements of this act.”

When questioned by a National Wildlife Federation attorney if either he or “the mining team” applied this key section of the new law to their analysis of the Eagle Project application, Maki responded, “I did not, no.”

At the Humboldt hearing, Fitch disagreed, saying, “Joe Maki did not say that we did not, that we disobeyed the law in processing the permit,” said Fitch.

Fitch was presented with a copy of Maki’s court transcript.

Rio Tinto is proposing to produce both nickel and copper concentrates at the Humboldt Mill that would “most likely” be shipped via rail to smelters in Canada. The waste material, containing heavy metals and acid-generating material, would be deposited underwater at the mill site, on top of Callahan’s tailings. The company plans to discharge treated wastewater into wetlands that feed into the middle branch of the Escanaba River.

According to the DEQ, the company must still apply for Air Use, Surface Water Discharge and Inland Lakes and Streams permits before the Humboldt Mill can be used again for mine processing. The DEQ expects to issue a proposed decision in “mid-April.” A new public hearing, addressing all of the required permits would follow.

Citizens are encouraged to send in written comments on the Humboldt Mill mining application. Comments are due to the DEQ by 5:00 pm on Wednesday, March 18.

Letters should be sent to:

Kennecott/Humboldt Mill Comments

DEQ Office of Geological Survey

PO Box 30256

Lansing, MI 48909

Or, by e-mail:

Deq-kennecott-humboldt-mill-comments@michigan.gov

Eagle Project on Hold

Rio Tinto released today a 38-page press release which discusses the company’s 2008 fiscal performance.   Buried in one paragraph on page 10 of the release, the company states that the “development of the Kennecott Eagle Minerals Company nickel and copper mine on the Yellow Dog Plains has been “deferred until market conditions recover.”

See http://www.riotinto.com/media/5157_17102.asp and click on the Press Release (pdf) at the bottom.

Jon Cherry of Kennecott Minerals hastily prepared a statement which reads,

“It is important to note that the Eagle project is one of many projects that add value to Rio Tinto. As market conditions continue to impact all industries, the Eagle team remains focused on realizing the inherent value of the project. We are continuing to work on our permits, litigation, and engineering design so that when the opportunity presents itself we will be poised to evaluate economic conditions and our next steps. The roughly 25 employees that are part of the Eagle project are integral to the ongoing activates in the U.P. These positions remain unchanged as we continue to focus on efforts and activities related to Eagle mine, Humboldt mill, and ongoing exploration activities.”

The fact is Kennecott finished their drilling activities for 2008 in December and laid off the young drill crew and security personnel indefinitely. Their plans for ‘full steam ahead’ have been slowed not only by the weather, but by Rio Tinto’s uncertaintly to proceed as planned.

The Eagle permit application has been criticized by experts in the field as being ‘worthless’ and should be thown out. The testimony given in the contested case against the Michigan DEQ and DNR proves that these agencies did not follow the law when evaluating and approving the mine permit. Thousands of citizens have signed petitions, written letters, and testified before the DEQ in efforts to bring attention to this project. Rio Tinto has not responded to the overwhelming public protest against Eagle project and remains isolated in London from these real issues surrounding Eagle.

The following are excerpts from John Pepin’s article published on the Mining Journal website, February 12, 2009 further explains Rio Tinto’s economic situation.

…[Though Rio Tinto reduced its net debt by $6.5 billion last year, posted underlying earnings of 38 percent above 2007 and had record 2008 production in iron ore, bauxite, U.S. coal, hard coking coal, alumina and borates, net earnings totaled $3.7 billion, half what they were the previous year, according to the release.

In December, Rio Tinto announced it would eliminate 14,000 jobs, cut capital spending from $9 billion to $4 billion for the coming year and expand the scope of assets targeted for divestment, including “significant assets” not previously up for sale.

At that time, Rio Tinto Chief Executive Tom Albanese said the measures were being taken in “response to the unprecedented rapidity and severity of the global economic downturn, which has caused sharp falls in commodity prices and a significantly weaker outlook.”

Albanese said Rio Tinto remained committed to an exploration and development strategy. But Albanese also said the company’s capital expenditure reductions would result in “impacts on projects across the board. Some projects will be canceled and others deferred until markets recover.”

Rio Tinto said then those projects would be announced today.]

[Some financial analysts speculated the $300 million Eagle Project could have made Rio Tinto’s canceled projects list because of faltering nickel prices and delays in starting the mine due to legal challenges over permits, which are continuing.

Even if legal challenges were soon resolved in the company’s favor, construction on the mine would take two years to complete before operations would begin.

This could mean the project deferment may not end up having much of an impact on the company’s plans for the Eagle Mine. But depending on how long it takes for the markets to rebound, the deferment might also pose big problems for Kennecott.

When asked what the company would do if it was legally able to begin construction in April, Cherry said, “We’d have to wait and see how things looked then. We’ll just have to see how it all fits together.”

Meanwhile, the Michigan Department of Environmental Quality has scheduled meetings and public hearings next Wednesday to take public input on Kennecott’s plans to reuse the Humboldt Mill.

The $80 million project would be expected to process ore from the Eagle Mine before it is shipped by rail to Canada for further processing. The facility is also eyed by Kennecott because there is room to expand processing there if additional Kennecott mining prospects in the area pan out.

Cherry said today’s project deferment announcement would not affect the sessions.

Kennecott officials said about 100 construction jobs and 50 full-time jobs in operation would be created at the Humboldt Mill. The Eagle Project, situated in northern Marquette County, would mine a six-acre underground deposit expected to yield 250 million to 300 million pounds of nickel and about 200 million pounds of copper.]

Subsistence Harvest Near Red Dog Mine Declines

A new federal study says the state’s largest mine likely caused reduced caribou and beluga harvests by nearby villagers.

The harvests in the subsistence-dependent village of Kivalina declined substantially after the Red Dog zinc and lead mine opened 20 years ago, the Environmental Protection Agency said in the draft report on the mine’s impact on the environment.

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