Wis. officials scrap talks over mine buyout

FROM THE ARCHIVE

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MONDAY, SEPTEMBER 16, 2002

The state of Wisconsin has ended talks over a tribally-driven proposal to buy a controversial mine site, officials announced on Friday.

Gov. Scott McCallum (R) and Administration Secretary George Lightbourn said the state wouldn't pursue a buyout of the Crandon project. An international conglomerate wants to mine 55 million tons of zinc and copper near an Ojibwe reservation.

But the officials said the deal wasn't economically sound. McCallum, who has faced criticism for his handling of the state budget, said a buyout would impact jobs.

"Mining is an important economic driver in the Crandon area and the concerns of citizens definitely played a role in our decision to stop negotiations," he said.

Lightbourn added that the price of the 5,000-acre site was just too much to bear. The state appraised the land between $51.2 million and $94 million, a value that includes the mineral rights.

Due to the cost, Lightbourn said he couldn't find an "acceptable" solution with the Nicolet Minerals Company, whose South African-based parent company is the largest diversified mining company in the world. He cited threats to the state's Stewardship Fund, a $241 million program used to buy land for preservation purposes.

"The use of Stewardship funds to purchase mineral rights would adversely affect our ability to complete high-priority land acquisitions for years to come," Lightbourn said.

The decision was immediately blasted by a broad coalition of tribes, environmental groups and local officials who oppose the mine project. "The Crandon Mine is a bad idea," said Caryl Terrell of the Sierra Club, one of the opponents.

The Sokaogon Ojibwe Tribe, the Forest County Potawatomi Tribe and the Menominee Nation are among the tribal critics. The mine would be located upstream from the Sokaogon's Mole Lake Reservation, and the tribes believe the chemicals used to extract the ore will damage waterways and subsistence resources.

Forest County Potawatomi Chairman Harold "Gus" Frank criticized McCallum's reasoning for withdrawing from talks. "In reality, the proposed mine is an environmental and economic disaster that threatens northern Wisconsin," he said.

Nicolet Minerals has denied any negative impact of the mine. President Dale Albert said his company believes the proposal "meets all state, federal and local mining laws, while protecting the environmental resources of northern Wisconsin."

The company plans to move forward with obtaining the necessary permits, Albert said. The project is estimated to cost $350 million.

Tribal environmental laws could throw a wrench into the process, however. The Supreme Court earlier this year refused to strike down the Sokaogon Ojibwe Tribe's water quality standards, a move tribal officials believe will prevent full approval of the Crandon Mine.

Sokaogon tribal members went to South Africa last month to discuss the mine with executives of BHP Billiton, Nicolet's parent company. No commitments were made at the time.

Relevant Links:
Ban Cyanide at Crandon Mine - http://www.alphacdc.com/treaty/cyanide.html
Nicolet Minerals - http://www.crandonmine.com