PolyMet Forms NewRange Copper Nickel Joint Venture with Teck Resources
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PolyMet Mining has closed on the joint venture with Teck American Inc., a subsidiary of Teck Resources Limited. The joint venture will be named NewRange Copper Nickel.
Under the terms of the transaction, the NorthMet and Mesaba deposits containing high-demand copper, nickel, cobalt, and platinum group metals (PGM) are placed under single management with PolyMet and Teck each receiving a 50 percent interest.
“Successful closing of the joint venture moves NewRange Copper Nickel to the forefront of responsible development of American-sourced critical minerals for the manufacture of clean energy and clean transportation technologies such as battery storage, wind and solar generation and electric vehicles,” said Jon Cherry, PolyMet chairman, president, and CEO.
The two resources represent approximately one-half of the known 8-billion-ton Duluth Complex resource in northeastern Minnesota, a globally significant resource.
NewRange Copper Nickel joint venture links the expertise, experience, and financial resources of PolyMet, Teck, and Glencore to develop the NorthMet mine when the remaining permit proceedings are complete and study the mine development options for Mesaba. Glencore retains its majority equity interest in PolyMet.
“We are pleased to have a partner like Teck join us in this transformational venture with its strong balance sheet, exceptional record of community involvement and sustainable mining practices, and world-class technical and mining capabilities,” said Cherry.
The company also said Denton Henkelman, vice president and project director, will leave PolyMet at the end of February.
“We are grateful for Denton’s leadership and considerable contributions in advancing our technical and economic understanding of NorthMet. We wish him well in his new pursuits,” said Cherry.
The closing of the joint venture results in Poly Met Mining, being renamed NewRange Copper Nickel and all of NorthMet’s assets, mineral rights, liabilities, permits and financial assurance obligations continuing under NewRange Copper Nickel. Likewise, all of Teck’s interest in Mesaba assets, mineral rights and liabilities transfer to NewRange Copper Nickel.
NewRange Copper Nickel is a stand-alone entity with its own leadership team and staff, overseen by a management committee comprised of an equal number of representatives from Teck and PolyMet. The committee chair rotates on a biannual basis with Jon Cherry serving as first-term chair.
PolyMet and Teck are responsible for funding their pro rata share of costs related to the NorthMet and Mesaba projects. The owners have committed to an initial work program with an estimated budget of $170 million to maintain permits, update feasibility cost estimates, and undertake detailed engineering to position NorthMet for a development decision following permit clearances, and to advance Mesaba studies.
Glencore has committed to support PolyMet’s respective portion of NewRange Copper Nickel’s initial $170 million work program and certain other costs and expenses in the amount of approximately $100 million.
NORTHMET AND MESABA STATUS
PolyMet successfully navigated the NorthMet Project through the comprehensive federal and state environmental review process and federal land exchange — a process that involved considerable public involvement and tribal consultation. The NorthMet Project, located near the community of Hoyt Lakes in northeastern Minnesota, earned nearly two dozen state and federal permits necessary to build and operate the 32,000 tons-per-day (29,000 tonnes) mine and processing facility. Three permits are pending final resolution of litigation and regulatory process to achieve final project approval.
The Mesaba Project is making progress on baseline environmental studies, resource definition and mineral processing studies. Further studies and proactive community and tribal consultation will help fully define long-term development potential.
About NewRange Copper Nickel
NewRange Copper Nickel is a joint venture between Teck and PolyMet and consists of the NorthMet and Mesaba deposits located in northeastern Minnesota, which are part of the Duluth Complex. The joint venture creates a path to develop a new domestic supply of critical minerals for the low-carbon transition through responsible mining.
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