July 3, 2023 at 10:44 am
A former iron ore processing plant near Hoyt Lakes, Minnesota, believed to be a component of a proposed PolyMet copper-nickel mine, is shown Feb. 10, 2016. The U. S. Army Corps of Engineerssaid Tuesday, June 6, 2023, revoked a federal permit for the NewRange Copper Nickel mining project, formerly known as PolyMet, in northeastern Minnesota, saying the permit did not meet water quality criteria set through a sovereign tribe downstream. (AP Photo/Jim Mone, File) Credit: ASSOCIATED PRESS
(AP Photo/Jim Mone, File)
BY ASSOCIATED PRESS
MINNEAPOLIS (AP) — Swiss commodities giant Glencore will acquire full ownership of PolyMet Mining, a company that is building a copper and nickel mine in northeastern Minnesota with one of Canada’s largest miners, Teck Resources.
Glencore already owns 82% of PolyMet Mining and has long been the main funder of the project. It filed Monday that it will pay about $71 million to increase that stake to 100 percent, which would make St. Petersburg-based PolyMet. Paul, in private. Glencore’s proposal represents a premium of around 167% over PolyMet’s final percentage value on Friday, and the percentages jumped into the news in trading on Monday.
PolyMet Mining said in a statement that it “welcomes the engagement with Glencore” and that its administrators are reviewing the proposal but have not yet made a decision.
The proposed mining project, a 50-50 joint venture with Teck, has long been blocked by legal and regulatory setbacks.
The latest came last month when the U. S. Army Corps of Engineers was released in a statement. The U. S. Supreme Court revoked a critical water quality permit. The Corps stated that the permit met water quality criteria established by Lake Fond Band of Lake Superior Chippewa, whose reservoir on the St. Chippewa River. Louis is downstream of the mine and processing plant sites near Babbitt and Hoyt lakes.
The task has long been criticized by environmental and tribal teams for its potential effects on water resources, but it has also increased complaints in recent months from former Gov. Arne Carlson, a Republican who served from 1991 to 1999. In addition to water quality risks, Carlson sounded the alarm about the influence of large mining corporations on Minnesota politics.
Carlson wonders if the state deserves to even engage with Glencore, given the company’s track record elsewhere. Glencore reached an agreement last year with the U. S. governments. They are seized by the U. S. , Britain and Brazil for allegations of corruption and market manipulation in exchange for consequences of up to $1. 5 billion.
Glencore also came forward to buy Teck’s coal and metal last month, after Teck rejected its takeover bid.