Antofagasta Sued The U.S. Government To Resume Operations At Its Copper And Nickel Mines

Antofagista's Twin Metals subsidiary sued the U.S. government on Monday to revive its proposed copper and nickel mine in Minnesota, whose operation was blocked this year by the Biden administration over concerns it could contaminate a major recreational waterway.

The lawsuit, which had been expected, said the Interior Department's cancellation of the lease in January was "arbitrary and capricious" and that Twin Metals should have the right to demonstrate that its project could meet environmental standards.

If built, the underground mine would be a major source of copper and nickel for the United States, two metals critical to the green energy transition. The only existing nickel mine in the United States is set to close in 2025.

A measure passed by Congress this month links electric vehicle tax credits to minerals produced in the United States or Allies, a requirement Twin Metals says shows its mines should be built.

Twin Metals is asking the district Court in Washington to reinstate the lease, which was first granted in 1966 without any mining taking place at the site. "Our lease was unlawfully canceled by the government, and we want to defend the legal requirements," said Dean DeBeltz, Twin Metals' director of operations and safety.

Opponents say U.S. environmental standards are too lax and that even if Twin Metals meets them, the proposed mine could contaminate the 405,000-hectare Boundary Waters Canoe Area Wilderness on the U.S.-Canadian border.

"Water-rich environments are not suitable for mining," says Becky Rom, director of the Minnesota conservation group Save Boundary Waters Campaign. "This lawsuit is almost a [last-ditch] effort by them to somehow force their way into the mine."

Last fall, the White House proposed a 20-year ban on mining in border waters. The proposed ban is now in the process of regulatory review. Congress is considering legislation that would permanently ban mining in the area.

首席执行官伊万Arriagada Chilea-basedtofagasta, told Reuters earlier this month that he expected growing demand for metal for electric vehicles to benefit the project. "The wave seems to be moving in the direction of realizing the need to get these projects done."