DNR receives proposal for nickel mining project in central Minn., would supply Tesla if approved
TAMARACK, Minn. -- The Minnesota Department of Natural Resources on Wednesday announced a new nickel mining project has been proposed in central Minnesota.
According to the DNR, Talon Metals LLC is proposing to the DNR a project known as the Tamarack Nickel Mine, which would involve constructing an underground mine and supporting facilities about 1.5 miles north of Tamarack.
The DNR says the project, if approved, would have an 80-acre footprint on the surface, including an access portal to the mine, temporary storage for ore and waste rock, and facilities that will collect and treat water.
The nickel ore, which will be processed offsite in North Dakota, will produce metal concentrates for the domestic battery supply chain.
"We understand that Minnesotans have widely differing perspectives regarding this proposed project and nonferrous mining more broadly. The DNR, however, must base its decisions on the facts and the law," Katie Smith, director of the DNR's Ecological and Water Resources Division, said. "I want to assure all Minnesotans that the DNR is committed to a rigorous, transparent, and neutral review of the project, based on science and applicable state law."
One group that has expressed concerns is the Mille Lacs Band of Ojibwe, which has several communities near the proposed site.
"There is much at stake; the proposed mine would be located just 1.3 miles from our communities and has the potential to impact our forever home and critical environmental and cultural resources," Chief Executive Melanie Benjamin said. "The Band supports transitioning to a green economy but in a way that does not cause further harm."
Local homeowners in Tamarack are also worried about sulfuric acid runoff from the mine leaking into pristine waterways. But Talon said it will process the nickel out of state, and that the deep-underground mine poses little risk to the environment.
The Department of Energy has already given the project a $114 million grant to build the ore processing plant in North Dakota, part of the Biden administration's efforts to boost domestic production of nickel, lithium and other metals needed for electric vehicles and the fight against climate change.
That funding contrasts with the administration's efforts to kill another proposed mining project in northern Minnesota, the Twin Metals copper-nickel mine near Ely, which is just upstream from the pristine Boundary Waters Canoe Area wilderness. And the federal government earlier this month raised a new obstacle to the separate NewRange Copper Nickel mine near Babbitt when the Army Corps of Engineers revoked a crucial water quality permit.
The Minnesota Center for Environmental Advocacy said in a statement that the U.S. would be better off boosting recycling to secure its nickel and other metal supplies. Around the world, governments and companies advancing renewable energy have found themselves battling communities opposed to similar projects, which critics have dubbed "green colonialism."
In its proposal, Talon Metals LLC says project construction is anticipated to begin in 2026, with production starting a year later. The project is expected to have about a 10-year production life. It is expected to bring more than 300 jobs to the state, and the company already has a deal to supply nickel to Tesla.
The proposal will first undergo a lengthy environmental review process before any permits or approvals are potentially granted. Follow updates on the project on the DNR's website.