Legislation

Canoe on lakeSafe Mines: Protecting Our Water from Toxic Mining Pollution

OVERVIEW:
A new kind of mining is being discussed in Minnesota. But are current regulations strong enough to protect our taxpayers and our lakes, rivers and streams?

Several companies are interested in operating non-ferrous sulfide mines in the state’s Arrowhead region. These mines are not Minnesota’s traditional iron ore and taconite mines; these new toxic-producing mines would extract minerals like copper and nickel from sulfide ores. This type of mining has the potential to cause long-term water pollution that would be very costly to clean up. Minnesota’s current non-ferrous rules are not strong enough, and the Legislature needs to make improvements to financial assurance requirements to protect our water and our wallets.

PROBLEM:
The U.S. Environmental Protection Agency (EPA) has identified the hardrock mining industry, which includes non-ferrous sulfide mining, as the nation’s top toxic polluting industry, creating over 2 billion tons of toxic waste annually. In the western U.S., the Forest Service estimates that mines are polluting between approximately 5,000 and 10,000 miles of streams.

Now, mining corporations have set their sights on a region stretching from Hoyt Lakes to the edge of the Boundary Waters Canoe Area Wilderness, and even into Aitkin County. One proposal from PolyMet Mining Corp. is in the midst of the environmental review process. Another company is interested in mining beneath Birch Lake, which flows into the Boundary Waters.

Time and time again, mining companies have escaped their clean-up obligations by manipulating their corporate structure, stripping the permit-holder entities of their assets, or filing for bankruptcy. To address these problems, many states now require mining companies to pay a “damage deposit” to cover clean-up costs.

Minnesota’s existing financial assurance regulations are insufficient to protect clean water and taxpayers. Studies show that other states have chronically underestimated financial assurance requirements and have accepted forms of financial assurance that are worthless when companies go bankrupt or otherwise do not meet their obligations. The result is taxpayers foot the bill and the environment suffers.

Non-Ferrous Mining Creates Sulfuric Acid
When rain runs off the waste from iron mining, it creates rust. When rain runs off waste from non-ferrous mining, it creates sulfuric acid, which in turn leaches out toxic metals and pollutes nearby lakes and streams. Pollution risks also include elevated levels of harmful sulfates, which can lead to mercury contamination of fish

POSITION:
Minnesota needs stronger financial assurance rules for non-ferrous sulfide mining, not only to protect taxpayers from being forced to pay for polluters’ messes, but also to ensure the state can respond to threats to our clean water. Needed improvements to financial assurance requirements include:

  • Financial assurance should be in cash or cash-equivalent forms and deposited in the state treasury — to be beyond the reach of bankruptcy courts.
  • Determination of the form and amount of financial insurance should involve not only the Minnesota Department of Natural Resources, but also the Minnesota Pollution Control Agency and the Minnesota Management and Budget Department.
  • Parent or affiliate mining corporations should be held accountable for clean-up costs.
  • The public should have a chance to review how financial assurance figures are obtained and adjusted, as a necessary protective measure for an industry with high pollution risks.

KEY COMMITTEES:
House:

  • Environment Policy and Oversight

Senate:

  • Environment and Natural Resources

BILL AUTHORS:
Rep. Alice Hausman
Sen. Jim Carlson

Information and status of the House bill: House File Number 2560

Information and status of the Senate bill: Senate File Number 2349

Click here to download a PDF fact sheet on Protecting Our Water from Toxic Mining Pollution.

To read more about all of MEP’s priority issues for the 2010 legislative session, click here to download a PDF of the 2010 MEP Legislative Priorities Briefing Packet.

For more information on this issue, contact:

Betsy Daub
Friends of the Boundary Waters Wilderness
612-332-9630
betsy@friends-bwca.org

Allison Wolf
Minnesota Center for Environmental Advocacy
651-223-5969
awolf@mncenter.org

John Tuma
Patience Caso
Minnesota Environmental Partnership
651-290-0154
johntuma@MEPartnership.org
patiencecaso@MEPartnership.org