Minnesota Department of Natural Resources canceling Twin Metals mineral lease

The Minnesota Department of Natural Resources says it is canceling a Twin Metals Minnesota mineral lease.

The state agency said in a statement to WCCO that its "exercising its authority" to cancel a mineral lease held by Franconia Minerals LLC., a wholly owned subsidiary of Twin Metals. The lease is on Birch Lake, just south of the Boundary Waters Canoe Area Wilderness.

"The decision follows nearly a year of review and is based on a determination that the company has not met the performance and production requirements of the lease," the DNR said. "The canceled lease is not located within the area that Twin Metals has previously sought to mine."

The termination of the lease takes effect Nov. 10, according to officials.

Twin Metals proposed opening a copper-nickel mine near the Boundary Waters in 2019 and continues to pursue the project.

"Twin Metals has invested more than 16 years in extensive exploration, geological, environmental, hydrological and engineering work, doing so in strict accordance with all applicable state and federal regulations," the company said in response to the cancellation of the lease. "We remain committed to advancing a sustainable underground mining project that will bring vital economic opportunities to northeastern Minnesota."

Minnesota Gov. Tim Walz last month issued an executive order to ban nonferrous mining in the Boundary Waters Canoe Area Wilderness area. The order directed the DNR to stop issuing leases and permits in the Rainy River Headwaters Watershed and to review all existing leases to ensure the Boundary Waters are protected long-term. 

Twin Metals is an Ely-based subsidiary of Chilean mining giant Antofagasta.