US House passes bill clearing the way for PolyMet land swap

November 29, 2017

PolyMet Mining secured a significant victory on Nov. 28 when the U.S. House of Representatives passed legislation that orders the U.S. Forest Service to move forward with a land exchange giving PolyMet access to the site where it hopes to build Minnesota’s first-ever copper-nickel mine.

The bill passed 309-99 and would, if it becomes law, nullify lawsuits filed by environmental groups to stop the land exchange.

The land swap was approved by the Forest Service in January. It gives PolyMet about 6,500 acres in the Superior National Forest at the mine site near Babbitt. In exchange, the Forest Service would get an equal value of undeveloped, formerly private forest land within the boundary of the Superior National Forest.

Twin Cities Pioneer Press reported that four different lawsuits have been filed in federal court to stop the land exchange, arguing that the Forest Service drastically undervalued the land for its mining potential and that the agency didn’t fully consider implications on endangered or threatened species. Critics also say the project has the potential to spur acidic runoff into the St. Louis River watershed.

The legislation, HR 3115, sponsored by Democratic U.S. Rep. Rick Nolan would render the lawsuits moot and force the land exchange to be final within 90 days.

Nolan said the bill and land exchange are critical in securing the promised 300 jobs at the mine and processing center. Nolan said the Forest Service is gaining higher quality forest in the swap.

“This bill is a win for taxpayers, for the environment, and for good paying jobs,” Nolan said in a statement after the floor vote. “If the land exchange — which has already been approved by the Obama Administration’s Forest Service — becomes law, it would mark an important step toward providing our nation the precious metals it requires to meet growing demands in defense, manufacturing, healthcare, environmental … technologies and medical research.”

Without the land exchange the PolyMet project could not advance. PolyMet already controls the mineral rights under the property.

No Senate version has been introduced but supporters say the Senate could accept the House version and move it on to President Donald Trump to be signed into law.

Toronto-based PolyMet is about one-third owned by Glencore, a Swiss commodities conglomerate. Glencore also owns the first five years of minerals produced if PolyMet receives permits to operate.

Even if the land exchange is finalized, however, PolyMet still needs approval from the U.S. Army Corps of Engineers for wetlands destruction and water use. PolyMet also needs more than 20 state and federal permits before construction could begin.


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