PolyMet and Teck form JV to develop Minnesota mining projects

Polymet Mining

20/07/2022 15:33

July 20 (Reuters) - PolyMet Mining Corp  POM.TO  and Teck
Resources Ltd  TECKb.TO  said on Wednesday they will form a
joint venture to develop their Minnesota copper and nickel
mining projects.
    The new company, known as NewRange Copper Nickel LLC, will
share costs to develop the two proposed mines, which aim to
produce metals used to make electric vehicles and other green
technologies. 
    Shares of St. Paul, Minnesota-based PolyMet jumped 6.8% on
Wednesday morning after the news, while shares of Vancouver,
British Columbia-based Teck fell 1.9%. 
    PolyMet's $1 billion NorthMet project is by far the most
advanced of the two, as it has received most of its permits. It
does face some regulatory and legal opposition. Teck's Mesabi
project has yet to be fully studied and does not yet have
permits. 
    Both projects are located in Minnesota's Iron Range region,
which has a long history of mining taconite ore for steel
production. The area is about 200 miles (322 km) north of
Minneapolis.
    Both companies have agreed to fund the JV with an initial
budget of $170 million for permitting and engineering work.
    As part of the deal, PolyMet will remain an independent
company and Glencore Plc  GLEN.L  will remain its largest
shareholder. Glencore has committed to funding up to $105
million of PolyMet's share of the JV's costs.
    Glencore controls about 71% of PolyMet's shares. As part of
the JV announcement on Wednesday, PolyMet said that Glencore may
eventually exercise its options to convert debt into equity,
steps that would boost its stake to 78%.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Minnesota court orders review of water permit for PolyMet mine  
  urn:newsml:reuters.com:*:nL1N2U425Z
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Ernest Scheyder; editing by David Evans)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))