Business & Finance
Michigan board approves $50 million in grants for controversial Upper Peninsula copper mine
The funding was awarded from a defunded state reserve account, bypassing the need for new legislative approval despite strong public opposition.
The short version
- The Michigan Strategic Fund voted 7-2 to award $50 million in state grants for the proposed Copperwood copper mine in the western Upper Peninsula.
- The funding consists of $45 million to Highland Copper Inc. for site readiness and $5 million to the Gogebic County Road Commission for local road updates.
- Opponents raise environmental concerns regarding risks to Lake Superior and the Porcupine Mountains, while supporters argue the project will revitalize the local economy and create jobs.
Key facts
- The Michigan Strategic Fund approved $50 million in grants on Tuesday, allocating $45 million to Toronto-based Highland Copper Inc. and $5 million to the Gogebic County Road Commission.[Associated Press]
- The funding comes from unused money previously allocated to the now-defunded Strategic Operating and Attraction Reserve (SOAR) Fund, meaning the grants did not require new legislative approval.[Associated Press]
- Highland Copper must secure $150 million in additional capital by spring 2028 and prove it created 380 jobs by March 31, 2033, to meet the grant's conditions.[Associated Press]
- The $45 million state grant represents more than half of Highland Copper's $80 million market value as of the day of the vote.[Associated Press]
- The Export-Import Bank of the United States indicated interest in lending $250 million to Highland Copper in late 2023, though no financing has been finalized.[Associated Press]
What remains uncertain
- Highland Copper plans to revise project costs and consider a smaller facility by March, leaving the actual number of future jobs uncertain.[Associated Press]
- Whether Highland Copper can successfully secure the remaining necessary private capital remains an open question, as the company previously had no investors and only a fraction of required capital.[Associated Press]