Copperwood mine critics raise pollution, tourism concerns as board approves $50M in funding

Following several attempts to move ahead with a grant supporting a mining project in the Western Upper Peninsula, members of the Michigan Strategic Fund Board gave the grants a go-ahead, utilizing funds previously approved by state lawmakers.

Board members voted Tuesday to approve two grants to support site readiness for the Copperwood Mine in Wakefield and Ironwood Townships, voting 7-2 to approve $44.9 million for Copperwood Resources Inc., and 9-0 for a $5 million grant to the Gogebic County Road Commission. A memorandum on the project says the funds will be used to improve infrastructure in the region, including investments in roads, energy and telecommunications.

While members of the strategic fund board previously approved a $50 million grant for the project in 2024, the funds were never appropriated by the Michigan Legislature, despite several efforts to include the money within the state budget. 

Ahead of Tuesday’s meeting, Michelle Grinnell, the chief communications and attractions officer at the Michigan Economic Development Corporation told reporters that the funds used for the requested grants were appropriated to the strategic fund through a 2022 budget supplemental, which included $50 million for site readiness work. 

Because the Legislature has already transferred the funding, it doesn’t require any additional approval to disburse the funds after the board’s vote, Grinnell explained.

Lawmakers and the head of the Michigan Economic Development Corporation have touted the project as an economic boon for the western U.P., with state Rep. Greg Markannen (R-Hancock) noting in public comment that the region had lost several major employers in recent decades, including the White Pine Mine, the Ontonagon Paper Mill and the Waupaca Foundry in Ironwood. 

While Reps. Dave Prestin (R-Cedar River), Karl Bohnak (R-Deerton), Parker Fairbairn (R-Harbor Springs) and Cam Cavitt (R-Cheboygan) and state Sen. Ed McBroom (R-Vulcan) spoke up in support of the project, the individuals who followed them in the in-person comment period were broadly in opposition to the project. 

They shared personal stories of trips to the Porcupine Mountains, discussed the legacy of mining pollution in the region and questioned the economic value the mine’s operator, the British Columbia-based Highland Copper, said the mine would bring to the region. 

According to the project memo, the Copperwood Mine is expected to create 380 jobs, operating for approximately 11 years, though Highland Copper CEO Barry O’Shea told the board they anticipate the operating period will be “well in excess” of that amount of time.

Bryan Mitchell of Novi noted that the Michigan Economic Development Corporation is responsible for the Pure Michigan advertising campaign, which aims to draw tourists by promoting the state’s natural features.

“By considering $50 million in Michigan taxpayer subsidies for a short-term, 11-year foreign – yes, foreign mining operation – this fund is suffering from financial split personality,” Mitchell said. “Public funds have been used for 20 years to build a world-class tourism brand on one hand, while simultaneously considering funding a foreign corporation to degrade that very asset that makes that brand valuable.”

Emily Smith, the land and conservation policy manager for the Michigan Environmental Council, raised concerns with the mine’s proximity to Lake Superior and Porcupine Mountains Wilderness State Park, noting that if the dam holding the mine’s tailings were to collapse, the waste would flow into Lake Superior. 

Prior to the vote, O’Shea told the members of the strategic fund board that the grant was incredibly important to the company. 

“I think it sets a path for the broader financing, and without it will certainly be challenging,” O’Shea said.

Following the board’s decision to approve the grant funding, O’Shea said the vote represented an important milestone in the company’s efforts to secure financing for the mine, with the company also receiving a letter of interest from Export-Import Bank of the United States for $250 million in potential debt financing.