PolyMet and Teck form JV to develop Minnesota mining projects (updated)

Polymet Mining

20/07/2022 17:39

(Adds PolyMet CEO interview details, updates stock prices)
    By Ernest Scheyder
    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. 
    "This partnership just seemed like a natural fit," PolyMet
Chief Executive Jon Cherry said in an interview. "It's a great
opportunity for northern Minnesota to really become the central
point of production for electric vehicle battery metals."
    Cherry said the JV will benefit from Teck's technical
experience in building mines and PolyMet's experience in
obtaining U.S. mine permits.
    Shares of St. Paul, Minnesota-based PolyMet jumped 10.1% on
Wednesday, while shares of Vancouver, British Columbia-based
Teck were down 2.2%. 
    PolyMet's NorthMet project is slated to cost about $1
billion and is the most advanced of the two proposed mines, as
it has received all of its permits, though three are being
challenged in court. Teck's Mesabi project has yet to be fully
studied and is not permitted. 
    Both projects are located in Minnesota's Iron Range region,
which has a long history of mining taconite ore. The area is
about 150 miles (241 km) south of Minnesota's Boundary Waters
region, where Antofagasta Plc's  ANTO.L  plans to build the Twin
Metals copper mine were recently dashed by U.S. President Joe
Biden.
    Teck and PolyMet have agreed to fund the JV with an initial
budget of $170 million for permitting and engineering work.
    Teck mines zinc, copper and a range of metals in Canada,
Chile and Alaska. PolyMet does not plan to focus on developing
other mines, Cherry said.
    Glencore Plc  GLEN.L , PolyMet's largest shareholder, will
fund up to $105 million of PolyMet's share of the JV's costs and
may boost its stake in PolyMet from 71% to about 78%, PolyMet
said.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Minnesota court orders review of water permit for PolyMet mine  
  urn:newsml:reuters.com:*:nL1N2U425Z
Environmental groups sue to undo 2017 PolyMet mine deal in
Minnesota      urn:newsml:reuters.com:*:nL1N2U52VP
Biden administration kills Antofagasta's Minnesota copper
project      urn:newsml:reuters.com:*:nL1N2U61Z2
U.S. no longer 'stable regulatory climate,' miner Antofagasta
says     urn:newsml:reuters.com:*:nL2N2VY1LB
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 (Reporting by Ernest Scheyder in Houston
Editing by David Evans and Matthew Lewis)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))