Anticipates release of draft permit to mine in
the near future
PolyMet Mining Corp., (“PolyMet” or the “company”) TSX: POM;
NYSE AMERICAN: PLM – announced today that its wholly owned
subsidiary Poly Met Mining, Inc. (together “PolyMet” or the
“company”) has submitted to the Minnesota Department of Natural
Resources an updated Permit to Mine application for its NorthMet
Project that incorporates the state’s requirements for
bankruptcy-proof financial assurance.
“With this financial assurance estimate, we believe PolyMet has
fulfilled all of the requirements necessary for the state to issue
a draft Permit to Mine,” said Jon Cherry, president and CEO. The
draft permit is expected to be released by the DNR in the near
future.
PolyMet’s application provides for $75 million in financial
assurance for the first two years of construction, about $60
million of which is associated with historic iron ore mining at the
former LTV Steel Mining Company site. This will include
approximately $65 million in financial assurance instruments
(letters of credit, surety bonds, etc.) and $10 million in cash to
be held in trust by the state.
The revised application also provides assumptions and estimates
that show financial assurance for the first year of mining, at $544
million. These figures represent the costs for the state to perform
the closure and reclamation activities, including long-term water
treatment, to meet current federal and state environmental
standards if PolyMet is unable to perform the work.
The costs for PolyMet to execute the closure and reclamation
plan have been considered in the project economics and are less
than what it would cost for the state to do the work.
During operations, financial assurance figures will be updated
on an annual basis to incorporate such things as new planned
disturbances, ongoing reclamation completed as part of normal
operations and any changes in regulations.
The largest single driver of cost in the financial assurance
estimate during operations is treatment of water to meet the state
wild rice sulfate standard of 10 mg/L, which is 25 times cleaner
than the federal drinking water standard. The financial assurance
estimate in the application is based on this standard.
State law stipulates that financial assurance be in place to
cover anticipated closure and reclamation liabilities for the
upcoming 12-month period. The amount is reviewed annually and
adjusted accordingly. Because no mining or processing will have
occurred during construction for the NorthMet Project, the initial
financial assurance requirement covers the legacy liabilities and
reclamation for any facilities or infrastructure built during the
construction phase. The estimate increases in the first year of
operations because mining, waste rock storage, tailings management
and water treatment begin.
“Financial assurance provided by the company is essentially an
insurance policy,” Cherry said. “Costs of reclaiming and closing
the site are already accounted for in our project plan. It protects
the state and taxpayers from incurring any costs should PolyMet not
be able to do so.”
Financial assurance is an alternative source of funding that is
controlled by the state if needed. Estimates reflect the costs that
result from a government agency providing oversight and a
government contractor doing the work rather than the company doing
the work itself.
“PolyMet anticipates it can execute the plan more cost
efficiently and absorb the reclamation costs as part of normal
operating expenses,” he said. “If we do our job right there will be
no reason for government intervention and no reason for the
financial assurance instruments to ever be called. We have both a
financial and social incentive to ensure that the financial
assurance is never called upon. What’s most important, whether we
execute the plan or the state executes it, the work will get done
and the environment and taxpayers will be protected,” Cherry
said.
“At every part of the environmental review and permitting
process, including financial assurance, PolyMet has demonstrated
that we can and will meet or exceed regulatory standards and
industry best practices,” Cherry said. “This will be the case with
our operations as well.”
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly
traded mine development company that owns 100 percent of Poly Met
Mining, Inc., a Minnesota corporation that controls 100 percent of
the NorthMet copper-nickel-precious metals ore body through a
long-term lease and owns 100 percent of the former LTV Steel Mining
Company site, a large processing facility located approximately six
miles from the ore body in the established mining district of the
Mesabi Iron Range in northeastern Minnesota. Poly Met Mining, Inc.
has completed its Definitive Feasibility Study. The NorthMet Final
EIS was published in November 2015, preparing the way for decisions
on permit applications. NorthMet is expected to require
approximately two million hours of construction labor, create
approximately 360 long-term jobs directly, and generate a level of
activity that will have a significant multiplier effect in the
local economy.
PolyMet Disclosures
This news release contains certain forward-looking statements
concerning anticipated developments in PolyMet’s operations in the
future. Forward-looking statements are frequently, but not always,
identified by words such as “expects,” “anticipates,” “believes,”
“intends,” “estimates,” “potential,” “possible,” “projects,”
“plans,” and similar expressions, or statements that events,
conditions or results “will,” “may,” “could,” or “should” occur or
be achieved or their negatives or other comparable words. These
forward-looking statements may include statements regarding the
ability to receive environmental and operating permits, job
creation, and the effect on the local economy, or other statements
that are not a statement of fact. Forward-looking statements
address future events and conditions and therefore involve inherent
known and unknown risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements due
to risks facing PolyMet or due to actual facts differing from the
assumptions underlying its predictions.
PolyMet’s forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made, and PolyMet does not assume any obligation to update
forward-looking statements if circumstances or management’s
beliefs, expectations and opinions should change.
Specific reference is made to risk factors and other
considerations underlying forward-looking statements discussed in
PolyMet’s most recent Annual Report on Form 40-F for the
fiscal year ended January 31, 2017, and in our other filings with
Canadian securities authorities and the U.S. Securities and
Exchange Commission, including our Report on Form 6-K providing
information with respect to our operations for the three and nine
months ended October 31, 2017.
The Annual Report on Form 40-F also contains the company’s
mineral resource and other data as required under National
Instrument 43-101.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
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PolyMet Mining Corp.Media:Bruce Richardson, +1
651-389-4111Corporate
Communicationsbrichardson@polymetmining.comorInvestor
Relations:Jenny Knudson, +1 651-389-4110Investor
Relationsjknudson@polymetmining.com
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