Controversial UP copper mine gets $50M in state grants after years of trying

Michigan taxpayers are poised to invest up to $50 million in the controversial Copperwood copper mine located in the far western Upper Peninsula. This decision was reached by the Michigan Strategic Fund during a vote on Tuesday. The mine, proposed by Toronto-based Highland Copper Inc., has faced years of attempts to secure state subsidies.

Initially, the company claimed the $425 million mine would create 380 jobs, but Highland Copper is now considering a smaller facility that would utilize fewer resources. The $45 million state grant, awarded alongside $5 million to the Gogebic County Road Commission for road improvements, represents nearly 10% of the original $425 million project cost estimate.

However, Highland Copper has stated that they will reassess project costs by March, potentially altering the job outlook. Environmental concerns, particularly regarding Lake Superior and the Porcupine Mountains, were raised by numerous community members during public comments. Critics argue that taxpayer funds should not be used to backstop a project that private capital markets have not fully supported.

The Export-Import Bank of the United States had shown interest in lending Highland Copper $250 million through its Make More in America Initiative, but no finalization has occurred. This grant comes three years after the Michigan Economic Development Corp. offered Highland Copper a $50 million subsidy, which was subsequently postponed due to capital concerns.