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Tribune News Service
Tribune News Service
Business
Riley Beggin

States bordering Lake Superior could have as much nickel as Russia, Canada

WASHINGTON — The Lake Superior region could be home to as much nickel as Russia or Canada, some of the largest nickel producers in the world, according to estimates by the United States Geological Survey.

A mining company and federally funded researchers are now trying to determine whether Michigan could be a global mineral hub as part of separate hunts for undiscovered deposits that could help meet rising demand in the United States for battery-powered electric vehicles.

Talon Metals Corp. is citing USGS' estimates — which indicate potential for undiscovered nickel in northeast Minnesota, northern Wisconsin and the western Upper Peninsula — as it prepares to launch its exploration of 400,000 acres of the western U.P., and as it seeks exclusive rights to explore state-owned land in Baraga, Houghton, Iron, Ontonagon and Marquette counties. The company also is working to launch a nickel mine in northern Minnesota that would supply nickel for Tesla Inc. for the next six years.

If the USGS estimates are accurate, the discovery could lead to renewed interest in mining in the Upper Peninsula’s historic mining regions — and spark debates about environmental safety and tribal sovereignty as communities weigh interests in furthering a clean economy with concerns over potential contamination.

The Michigan Geological Survey also is searching portions of the U.P. as part of the first nationwide minerals mapping project USGS has undertaken in around 70 years. Researchers are open to the possibility that nickel and other crucial battery minerals such as lithium, graphite and manganese may also be present in the Upper Peninsula.

Both projects are spurred on by the growing need for minerals to power the country’s transition to electric vehicles and ongoing concerns about reliance on supply chains controlled by China, home to top battery makers and the largest EV market in the world.

Indonesia supplied 42% of the world’s nickel in 2022, according to Benchmark Mineral Intelligence, though much of that is tangled up in Chinese investment and refined using environmentally risky technology. China produced 16%, while Canada and Russia supplied 6% and 5%, respectively.

The projects also come as the U.S. auto industry prepares to capitalize on new electric vehicle incentives passed through the Inflation Reduction Act, which includes big subsidies for companies that source minerals from within the United States and with allies.

“Seventy years ago, ‘critical minerals’ wasn’t in anybody’s vocabulary,” said John Yellich, director of the Michigan Geological Survey housed at Western Michigan University. “We need to understand our battery resources — that’s one of the critical things, particularly for the automotive industry … and we’re looking for any other critical minerals that can be used for other things (to combat) climate change.”

Nickel mining comes with environmental risks due to potential acid leaching from exposed ore, even as mining practices and oversight have improved since the U.P.'s mining heyday. But as international experts demand major near-term changes to prevent the most disastrous effects of climate change, environmental advocates are weighing their concerns.

"There's a critical need" to ensure sensitive wilderness areas and the Great Lakes aren't harmed by any future mining there, said Michigan Sierra Club Chapter chair Anne Woiwode. But she added that there is "no question" the country needs to move away from gas-powered cars, trucks and SUVs.

"One of the big questions to be faced is: How do we achieve the clean energy goals without destroying the environment?"

Mid-Continental rift

Around 1.1 billion years ago, North America was splitting apart. A tear started in present-day Kansas, ran up across the Upper Peninsula and down to southeast Michigan, spewing lava and dragging up nickel from the center of the earth.

Over time, layers of sediment settled over the tear and likely left mineral deposits running through the region.

“What we’re exploring is essentially the plumbing system of an ancient volcano,” said Brian Goldner, chief exploration and operating officer at Talon Metals.

Rio Tinto discovered a nickel deposit near Tamarack, Minnesota, around 20 years ago. Talon, a joint venture with Rio Tinto, has now proposed a mine in the area and is seeking permits from the state to set up shop producing nickel and copper. It plans to expand its search into Michigan in the fall, where it believes there’s more of the valuable metal to be found.

Last year, it acquired the rights to explore for nickel deposits on 400,000 acres of land that was once owned by Ford Motor Co. Now, Talon is seeking rights from the state to explore an additional 23,288 acres with a public comment period closing at the end of the month.

There’s already an indicator that there’s nickel in the Upper Peninsula: It is home to the nation’s only nickel mine, Eagle, which is expected to close around 2026. Bitterroot Resources Ltd., another mining company, said it has also found more nickel nearby.

But Talon believes there’s likely even more, based in part on a USGS report from 1997 that showed similarities between the geology around Lake Superior and that found in major nickel-producing regions in Canada and Russia.

“Now they’ve doubled down and said there’s more to discover,” Goldner said. USGS researchers released a second analysis in 2016 that says there are likely five undiscovered deposits remaining in Michigan’s U.P. and two more in Minnesota.

Talon's exploration team is also led by an expert with a track record: The company’s lead geologist, Dean Rossell, discovered both the Eagle deposit in Michigan and the Tamarack deposit in Minnesota, the only other known high-grade nickel deposits in the country.

“He’s explored for nickel all around the world,” said Talon’s Chief External Affairs Officer Todd Malan. “But his lifelong conviction is that this Mid-Continental rift area — and the U.S. Geological Survey agrees with him — has a lot more nickel to provide.”

Right now, nickel is primarily used to produce stainless steel. There is more supply than demand globally, said Caspar Rawles, Chief Data Officer at Benchmark Mineral Intelligence, which is expected to last until 2025. But from 2026 on, there will be a global undersupply of nickel driven by growing demand from the battery supply chain.

This year, Benchmark estimates nickel demand from batteries alone will be around 560,000 tons. By 2030, that is expected to grow to 1.8 million tons.

Going beyond nickel

Meanwhile, the Michigan Geological Survey is undertaking a mapping project of its own in the Upper Peninsula.

Using funding from USGS, Michigan Geological Survey researchers and geologists at Michigan Tech University are conducting aerial mapping over 200 square miles of the western U.P. They’re looking for differences in the earth’s surface that may indicate mineral content — something Yellich called a “geophysical signature.” When they identify a spot, they take a core sample of the rock and send it to USGS to analyze its contents.

USGS says there may be graphite, manganese, cobalt and lithium in the state — all used to build EV batteries — in addition to other critical minerals. Cobalt would likely be produced as a byproduct of nickel mining, said William Cannon, a Scientist Emeritus with USGS specializing in the Upper Peninsula. Lithium "might be kind of a longshot, but it's a possibility."

The federal government hasn’t done significant mapping in the Upper Peninsula for 70 years, Yellich said. At that time, researchers largely mapped creek bottoms, the only exposed rock that allowed sampling. New technology allows for exploration in other areas that will help gather “as much scientifically accurate information as possible,” he said.

Their project began in 2019 but was derailed for nearly two years due to the pandemic. It’s funded through 2026 as part of USGS' Earth MRI program, a nationwide research project that officials hope will rival government-funded research in countries like Australia and Canada that has enabled businesses to invest in critical mineral production there.

Yellich’s team is also asking for $304,000 more from USGS to look at areas containing old mine waste for potential critical minerals, which cover a wide swath of the western U.P.

They plan to find the waste dumps using LiDAR and study their contents — which could include critical minerals already sitting on the top of the ground, Yellich said, including battery minerals graphite and manganese.

And they’re knocking on the doors of retired geologists and mining engineers to dig up old data from the 1990s and ‘80s on historical mine dumps that may have been lost when the government shut down the U.S. Bureau of Mines, a federal agency that researched mining and processing minerals from 1910 to 1996.

For Yellich, the work also has a national security imperative: “China produces most of the critical minerals for the rest of the world. There’s always a potential they could shut off our supplies. If they did that tomorrow, we’d be dead meat.”

What's next

If mineable nickel or other minerals are found in Michigan, it would take years for Talon or another mining company to break ground.

Proposed mines go through extensive environmental reviews at the state and federal level, undergo a public comment period, and often face legal battles. On average, it takes seven to 10 years to permit a mine in the United States. Eagle Mine, between Marquette and L'Anse in the Upper Peninsula, took nine years from applying for permits to mining ore.

That was in part due to environmental concerns over acid mine drainage: Rock containing certain minerals (most commonly copper, nickel, lead, cobalt, silver, iron and zinc) can pose hazards to local waterways and human health when extracted because it has sulfides that leach acid once exposed to the air. This type of mining can also release heavy metals into the environment, such as lead and mercury, which can hurt human health.

The Keweenaw Bay Indian Community shared those concerns and feared it would impact a sacred site and the tribe's treaty rights. They have since partnered with other former opponents to monitor the site, supported by funds from Eagle.

Mining experts say advanced practices and regulations have made modern mining safer, but many remain wary. Talon has faced opposition from tribes and environmental groups in Minnesota as it seeks permits to mine at Tamarack and send ore to a processing facility in North Dakota, aided by a $114 million grant from the U.S. Department of Energy.

"There's a great momentum coming out of the Biden administration and the state of Minnesota to push for electrification of the nation and to transition away from petrol fuels," said Kelly Applegate, commissioner of natural resources for the Mille Lacs Band of Ojibwe, which leads the "Water Over Nickel" opposition campaign.

But he said the tribe fears it will impact nearby resources like medicinal plants, fish and animals: "That's part of our culture and our identity of who we are, and they all depend upon the clean water that's in the area now."

Woiwode of the Michigan Sierra Club said that if Talon or another company proposes a new mine in the Upper Peninsula, it's important that all state and federal environmental requirements "are not just applied, but actually met."

"If permitting does happen, it has to assure that the strongest standards are in place," she said. "We sit here in the middle of the Great Lakes — the last thing that we need is additional pollution entering Lake Superior or Lake Michigan. That's unacceptable."

Talon says any high-grade nickel deposit found in Michigan would be mined in a similar underground mine as Eagle, and that tailings — mine waste that can pose an environmental threat when not properly disposed of — would be handled using the latest technology and meet or exceed any state and federal requirements.

The company also has said it is committed to "proactive transparency" with tribal communities on any of its U.S.-based projects and will "respect tribal government's role and authority in protecting the environment."

"Our goal is to demonstrate how we plan to protect the natural environment during exploration and seek tribal knowledge to ensure we protect areas of cultural importance," said Malan, Talon's chief external affairs officer, in a statement. "Our team is committed to protecting the environment and cultural resources while also discovering additional minerals that are required in the energy transition."

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