A Canadian National Railroad locomotive and an LS&I Railroad made contact with a propane tank car at the LS&I Eagle Mills yard early Friday morning.

Due to the concern of a potential leak of propane gas, employees at the Eagle Mills yard, along with residents in homes in a radius of a half mile, were temporarily evacuated as a precaution.

The evacuation lasted less then two hours and residents were allowed to return to their homes after it was determined there was no propane leak.

A leak of an undetermined amount of diesel fuel from the locomotive is begin investigated and Cliffs Natural Resources personnel have contained the diesel fuel leak area.

A propane emergency response management team from downstate is on its way to the Upper Peninsula to transfer the propane from the tanker car.

Additionally, Cliffs Natural Resources has notified the Michigan Department of Natural Resources and Environment regarding the incident.

There were no injuries and the incident remains under investigation.

The area has seen an incredible surge in mine exploration activity, with 4,000 claims staked in the past two years, alone, as part of an effort by over 35 companies to get in on the action before Ontario modernizes its antiquated mining laws.  Many of the claims are located on traditional native land, amid concerns that companies and the provincial government have not adequately consulted them, as required by law, before moving ahead with plans.

“Exploration on our traditional land is getting out of hand,” said Marten Falls First Nation Chief Elijah Moonias.  “Mineral Exploration companies are not respecting our interests.”

The "Ring of Fire" (red marker), within the relatively untouched northern boreal forest, is facing intense mineral exploration

Late in 2009, while many of its iron workers in Minnesota and Michigan were without work, Cliffs invested $800 million in an effort to open a new chromite deposit.  Chromium, when processed into ferrochrome, is used to make stainless steel.  Cliffs is the primary shareholder of KWG Resources, which owns Canada Chrome.  Cliffs also recently purchased Freewest Resources, another company active in the Ring of Fire, for roughly $225 million.

“My community members are not opposed to development but they need to be included in any development that’s in traditional territories,” Webequie First Nation chief Cornelius Wabaesse said. ” We have been on this land since time immemorial – we would like to be part of its benefits.”

Several companies, including Freewest Resources, are exploring 80 miles north of Marten Falls.  Freewest has reportedly found the largest chromite deposit in the world and is staking claims along a 220-mile corridor between McFauld’s Lake and the Town of Nakina where the company wants to build a controversial railway.  With little, if any, oversight, companies are illegally dumping waste in their frenzy to find new deposits.

“We are hearing reports of 200 fuel drums sinking into the wetlands because they were placed clumsily on bog mats,” Anna Baggio of CPAWS Wildlands League said. “Who will be responsible for cleaning up and restoring these lakes and wetlands?”

According to David Euler, from the group Ontario Nature, the northern boreal forest is “one of the last intact, original forests remaining on the planet,” with “none” of the projects requiring a full environmental assessment.  The Ring of Fire houses the headwaters of two major rivers that flow into James Bay and borders the Hudson Bay Lowlands, one of the world’s largest wetlands.

“The impact of mining activity in this region will have a legacy that will last hundreds of years into the future and there is the potential for irrevocable harm,” said Ramsey Hart, MiningWatch Canada’s program co-ordinator. “We have this opportunity, at this juncture, to do it right, with proper planning, environmental controls, and consent and accommodation of First Nations. This is an opportunity we can’t afford to lose.”

The controversial Cliffs Natural Resources was cited earlier this week for pollution at some of its facilities on Minnesota’s Iron Range that have been violating federal water pollution laws for years, without enforcement from environmental agencies that knew about the violations.  In 2008 Cliffs, which owns coal mining projects in West Virginia and Alabama, failed in an attempt to form a multi-billion dollar merger with Alpha Natural Resources, one of the largest producers of coal in the US.  Cliffs’ attempt coincided with production cuts at iron ore mines in Minnesota, while the company laid-off workers and cut production at the rest of its Minnesota and Michigan iron ore operations shortly after.

PolyMet plans to purchase this processing site; reportedly, Cliffs would maintain a roughly 7% stake in PolyMet's proposed NorthMet project

Three groups today announced their intent to file a lawsuit against Cliffs Erie, a subsidiary of Cliffs Natural Resources, for ongoing water pollution from previous taconite iron mining at three sites on Minnesota’s Iron Range.  PolyMet Mining Co. plans to utilize two of the sites in order to dispose of wastes from its proposed metallic-sulfide NorthMet project.  As part of a purchase agreement, Cliffs would maintain a roughly 7% stake in the project.  The other Cliffs site, at the old Dunka Mine, is closer to Franconia Minerals and Duluth Metals’ proposed sulfide projects.

A news release issued by the Center for Biological Diversity noted that, “according to Cliffs Erie’s own monitoring reports, there are numerous ongoing violations of water-quality laws relating to management of the former LTV tailings basin. PolyMet’s proposal for its copper-nickel mine is to pile its own tailings waste on top of those from a former taconite mine that are still polluting.”

The Center for Biological Diversity, Save Lake Superior Association, and the Indigenous Environmental Network filed a formal notice letter today that acts as a “prerequisite to filing a citizen enforcement action under the Clean Water Act.”  The Save Lake Superior Association, a grassroots citizen group, proved instrumental in holding the Reserve Mining Co. to account for dumping iron mining waste into Lake Superior from 1955 into the 1970s.  The pollution introduced asbestos-like material into the lake and harmed fishing in the area.

From today’s Center for Biological Diversity news release:

“Before the state even considers the approval of a new wave of mining in northeastern Minnesota, it should first require the mining companies to clean up the pollution from past taconite mines,” said Marc Fink, an attorney with the Center for Biological Diversity. “As we all learned as kids, you should clean up one mess before making another one.”

The LTV basin, located six miles north of Hoyt Lakes, was used for taconite tailings from the 1950s until 2001. The unlined basin is the source of numerous seeps and discharges of polluted wastewater into groundwater and surface waters, which eventually reach the Embarrass River.  For the proposed NorthMet mine, PolyMet proposes to process more than 225 million tons of ore at the LTV processing facility, and use the same LTV tailings basin already known to be leaking.

“While past mining has already polluted these waters, the proposed heavy metals mining would bring severe new threats of pollution to these waters, which ultimately flow into Lake Superior at the Duluth harbor,” said Le Lind of the Save Lake Superior Association. “This new threat includes sulfuric acid runoff and higher levels of mercury in waters that are already impaired.”

In addition to the LTV site, the groups intend to file suit to stop ongoing pollution at the Dunka mine site, which is close to where Duluth Metals has plans for a copper-nickel mine adjacent to the Kawishiwi River, and where Franconia Minerals proposes a copper-nickel mine at the bottom of Birch Lake. Both the Kawishiwi River and Birch Lake flow into the Boundary Waters.

“These are historic tribal lands where the tribes retain treaty rights, and many tribal members are deeply concerned about additional pollution to fishing streams and sources of wild rice,” said Marty Cobenais of the Indigenous Environmental Network.

Cliffs Natural Resources operates iron ore mines in Minnesota and Michigan, including the Empire and Tilden mines, in the Upper Peninsula.  Cliffs’ Michigan operations are currently leaching illegal amounts selenium into surrounding groundwater and surface water that is in violation of federal and state water quality laws.

ArcelorMittal owns a 21% stake in Cliffs Natural Resources’ Empire Mine, located in Michigan’s Upper Peninsula, and a 62.3% share in Cliffs’ Hibbing Taconite facility.  Cliffs’ has been taking some heat from Minnesota steelworkers for deals reached with ArcelorMittal that workers say are costing them their jobs. The company is expected to recall workers soon.

An investigation revealed that ArcelorMittal received far more emissions credits than it should have, partly due to ArcelorMittal’s lobbying efforts – performed by CEO Mittal – and cavalier threats – outlined in a January 2008 letter to the European Commission – to move all of their more than eighty European steel plants, at a cost of roughly 90,000 jobs.

As reported in the London Times Online:

Anna Pearson, an expert on the ETS who carried out the analysis, said: “Between 2008 and 2012 ArcelorMittal stands to gain assets worth £1 billion at today’s prices for scant effort. For them, the ETS has been turned into a system for generating free subsidies.”

“Following intense lobbying and claims that the scheme would harm business, the cap on emissions was set too high and too many permits were issued,” said Pearson, who performed her analysis for Sandbag, which campaigns to improve carbon trading.

Pearson estimates that by 2012 the company will have accumulated surplus permits for 80m tonnes of CO2 — equivalent to the pollution generated annually by the whole of Denmark.

Pearson said she had written to Mittal on behalf of Sandbag asking if ArcelorMittal would “retire” the carbon permits — meaning they could not be used by anyone else.

“If the company were to rip these up it would be a great act of philanthropy and set an excellent example,” she said.

An ArcelorMittal spokesman said: “ArcelorMittal’s surplus carbon credits are an asset which will only grow in importance,” he said.

Rio Tinto, seeking to open a metallic sulfide copper-nickel mine, in Michigan, and actively exploring in Minnesota, is also expected to be the recipient of a large, taxpayer-subsidized handout, similar to ArcelorMittal’s.  Simply by virtue of being one of the country’s biggest polluters, Rio Tinto is expected to receive free carbon credits worth $462 million (Australian) in 2010, with the value expected to increase by 2015.  Rio can sell the credits to other companies or use the credits to increase pollution at their Australian facilities.

For an excellent and humorous introduction to “carbon credits” and the pitfalls involved in their distribution and trade, watch the “The Story of Cap and Trade.”

The study shows that, out of a little over 600 regulated facilities in Michigan, nearly 60% have violated the Clean Water Act.  More disturbingly, only 11% of all known violations met with any kind of enforcement action from the Michigan Department of Environmental Quality (MDEQ) or other agencies charged with enforcement.

Minnesota doesn’t fare much better, with enforcement of only 12% of all violations, while Wisconsin has enforced 33% of its violations.

Some results of the Time’s study are displayed in an easy-to-use format that allows viewers to locate statistics on Clean Water Act violations and lack of enforcement, by state, as well as find Clean Water Act violators in each state.

In the Michigan county where a metallic sulfide mine, proposed by

Cliff's Natural Resources' Tilden Mine, in Marquette County; Photo courtesy Michigan State University

Kennecott/Rio Tinto, has been approved by the MDEQ, Clean Water Act violators include A. Lindberg & Sons, which has been hired by Rio Tinto to construct a road to haul ore to a proposed milling facility; Cliffs Natural Resources’ Tilden iron ore mine; the Ironwood Oil Company and Shopko, in Marquette, in addition to both of the community’s coal-fired power plants; as well as both Marquette and Richmond Township’s wastewater treatment plants.

According to the Times the Marquette Wastewater Treatment plant “has been out of regulatory compliance 11 of the past 12 quarters,” and has never faced enforcement for violations of the Clean Water Act, while Cliff’s Tilden Mine, last punished for violating the Clean Water Act in 2007, has violated in “8 of the past 12 quarters.”  According to the Times, both of Marquette’s power plants, while shown to be consistent violators, have never been enforced for failing to follow federal law.

On Minnesota’s Iron Range, iron miners are shown to be consistent polluters, alongside power plants.  The Northshore Mining Co./Cliffs MnMinerals Co. , in Babbitt, is shown to have violated the Clean Water Act during the entire duration of the study, while the Cliffs Erie facility, near Lake Superior, has been shown to be a consistent violator.

The information came as the result of an extensive survey of water law violations and widespread lack of enforcement that utilized hundreds of thousands of documents obtained through open records requests with every single state and the Environmental Protection Agency (EPA).  With the information, the Times created

Steven Chester, Michigan DEQ Director; Photo courtesy State of Michigan

a national water pollution database “that is more comprehensive than those monitored by states or the E.P.A.”

The Time’s study shows that, while “powerful industries,” such as mining, have helped to “undermine effective regulation,” increased workloads and a lack of funding has contributed to many state’s lack of enforcement.

In September 2008, MDEQ Director Steven Chester acknowledged that his agency “simply [doesn't] have the kind of funding we need to adequately implement the laws we’re required to implement.”

In an interview with the Marquette Mining Journal, Steve Casey, an official with the Michigan Department of Environmental Quality’s Water Bureau said, “This is the first time we’ve had a significant issue with selenium in Michigan.”

However, according to DEQ records, elevated selenium levels are also found near the old Humboldt Mine, in western Marquette County.  Kennecott-Rio Tinto is attempting to use the area to process metallic sulfide ore from the proposed Eagle Project Mine.

Selenium, like mercury, can bioaccumulate up the food chain, creating potential public health problems when people ingest contaminated fish or other animals.

Casey says that water in a hypothetical new drinking water well at the site shouldn’t be affected by the discharges and wouldn’ t be likely to exceed drinking water standards for selenium.

“Cliffs has been working with DEQ to identify what the potential source of this element is,” Cliffs spokesman Dale Hemmila said. “Right now there is no source identified.  We believe additional studies have to be done.”

Hemmila says that there is “no known known impact on the drinking water.”

The DEQ has set selenium limits on process wastewater discharge from the Empire Mine that are due to take effect in December 2011.

Cliffs maintains other iron ore mines, as well as coal operations elsewhere in North America and abroad.

According to the Minnesota DNR, roughly a dozen mining companies are currently exploring for nonferrous metals in Northeastern Minnesota’s Duluth Mafic Complex.[1] The Duluth Complex is the largest undeveloped nonferrous deposit in the United States and borders the Boundary Waters Canoe Area Wilderness.[2]

PolyMet Mining Corp.’s NorthMet project, south of Babitt, is the largest undeveloped nonferrous mineral deposit in the US. The company owns a 100% leasehold interest in the 4,162 acre complex.[3] NorthMet is expected to commence extraction of platinum, palladium, gold, copper, nickel, cobalt, and silver in 2008.[4]

In December, 2006, PolyMet reached an agreement with Minnesota Power to provide electricity to the project through 2018.[5]

In March, 2007, the company contracted the URS Corporation, in Denver, Colorado, as lead contractor for the project’s “Engineering, Procurement and Construction Management” (EPCM).[6]

In 2005, PolyMet acquired its mining development site and an existing crushing and grinding plant from Cliffs Erie L.L.C., a wholly-owned subsidiary of Cleveland-Cliffs Mining Co. (CCI). In December, 2006, the company purchased Cliff’s railroad connection, including a 120-railcar fleet, locomotive fueling and maintenance facilities, water rights and pipelines, administrative offices and approximately 6,000 acres adjacent to PolyMet’s proposed tailings facilities.[7]

As part of the deal, CCI acquired 7.7% of PolyMet’s common stock.[8]

CCI, which operates iron mines in Michigan, Minnesota, Canada and Brazil, is closely related to another nonferrous minerals explorer in Minnesota, Kennecott/Rio Tinto.

In May 2006, the Aitken County, MN, Planning Commission denied Kennecott a conditional use permit to explore for nonferrous minerals in the county.[9]

In 2003, CCI appointed Randy L. Kummer Senior Vice President of Human Resources. Kummer was formerly Vice President of Human Resources, Government and Public Affairs for Kennecott.[10]

Also, Joseph A. Carrabba is slated to become CCI’s CEO upon John S. Brinzo’s retirement, this year. Carrabba worked for Rio Tinto for approximately 20 years, most notably as President and Chief Operating Officer of Diavik Diamond Mines, Inc. a major producer of diamonds.[11]

In 2004, the United Steelworkers Union (USWA), in Labrador, Canada, struck against Wabush Mines (CCI) and the Rio Tinto-owned Iron Ore Company of Canada (IOC) for proposed company concessions that would eliminate jobs and increase outside contracting of work. USWA’s Ontario/Atlantic Director Wayne Fraser accused Rio Tinto of a pattern of anti-union behavior.[12]

Steelworkers at IOC’s Labrador City mine as well as at the company’s pelletizing plant and port, in Sept-Iles, Quebec, are still on strike. Fraser said, “This company is playing fast and loose with the truth and putting our members’ future livelihood [sic] at risk…for the company to simply walk away [from negotiations] shows remarkable disrespect to both the process and, more importantly, to the employees, who do not take the decision to be on strike lightly.”[13]

1 Thomas, Richard, “Mining companies Eye Duluth Complex,” BusinessNorth, June 30, 2006

2 Iron Range Resources, “Changing Landscapes: Base and Precious Metals Projects Bring New Prospects to East Range,” Range View, Winter 2006

3 Hunter, D.J., PolyMet Mining Corp., “Technical Report…on the Results of a Definitive Feasibility Study of the NorthMet Project,” October, 2006

4 News Staff, “Polymet Reaffirms 2008 Start of Commercial Metal Production,” BusinessNorth.com, December 4, 2006

5 Journal Staff, “PolyMet and Minnesota Power Agree on Long-Term Contract,” BusinessNorth, December 12, 2006

6 PolyMet Mining Co., “PolyMet Engages NorthMet Engineering Contractor,” Press Release, March 15, 2007

7 PolyMet Mining Corp., “PolyMet Concludes Minnesota Asset Purchase from Cleveland-Cliffs,” Press Release, BusinessNorth.com, December 21, 2006

8 Ibid

9 Supra, 1

10 CCI, “Cleveland Cliffs Announces Senior Management Changes,” Press Release, BusinessNorth.com, January 2, 2003

11 CCI, “Cleveland-Cliffs CEO Brinzo Announces Pending Retirement: President and CEO Carrabba to Assume Chief Executive Role,” Press Release, BusinessNorth.com, May 9, 2006

12 USWA, “Canadian Steelworkers Strike Cliffs’ Wabush Mines,” Press Release, BusinessNorth.com, July 8, 2004; USWA represents roughly 190,000 workers in every sector of Canada’s economy.

13 Guzzo, Maria, “IOC Surprised by Strike Standoff; Union Places Blame on Company,” American Metal Market, April 5, 2007, p.6