Franconia Minerals Corporation - Franconia’s Position on Non-Ferrous Mining in Minnesota

Franconia's Position on Non-Ferrous Mining in Minnesota

Minnesota metals can meet today's challenges: Our state is poised to help meet US and world demand for metal supplies that contribute to powering a new economy and a cleaner environment.

Minnesota's new mining practices and technologies mark us as an example of how to most responsibly and efficiently, deliver copper, nickel, platinum and other important materials that will underpin a better, more sustainable way of life.

The goals of generating more renewable energy, creating cleaner engines, developing more reliable food supplies, and strengthening our infrastructure to jump start our economy can all be achieved using metals like those found in the Duluth Complex along the east end of Minnesota's Mesabi iron range. To ensure that these vital resources are properly utilized, the State has implemented an orderly process for environmental review and permitting. The bulk of the cost is paid not by taxpayers, but by the project developers.

Environmental groups, industry representatives, government agencies and other key decision-makers have worked together to provide the tough and thorough regulatory system we have today. Minnesota has mandated a dedicated team of experts to work on behalf of our citizens to deal with the unique technical components critical to the proper evaluation of proposals to mine and produce these metals.

As a result of this rigorous oversight, we have the potential to see the world's cleanest copper-nickel and platinum group mine at the Franconia Minerals Birch Lake deposit. This deposit is deep underground, minimizing the surface footprint. Mine wastes from this already low-sulfur containing deposit, can be secured deep underground to still further minimize surface impacts -- particularly compared to the waste challenges of open pit mining. Mineral concentrate can be treated in autoclaves -- large pressure cookers -- with minimal air and water emissions. The planned, leading-edge and fully-enclosed hydrometallurgical process will be more energy-efficient and environmentally benign that conventional smelting. In addition, Franconia is developing an extensive plan to guard against any possible pollution occurrences.

What we gain: The result of this planned development will be hundreds of construction jobs, followed by hundreds of permanent full-time jobs, including career opportunities for skilled workers and mining professionals. In turn, this will generate opportunities for suppliers and services, including teachers and medical staff. Finally, an operation like this is likely to attract investment in value added businesses, such as copper fabrication, leading to more jobs.

In addition to the social and financial rewards generated by new jobs, the State and local tax and royalty revenues from this operation will help strengthen our communities and stabilize our education budget. Benefits will be seen both statewide -- through occupation taxes, sales taxes, and school trust fund royalties -- and locally -- through net proceeds taxes and property taxes.

Meanwhile, the metals produced are extremely important to our and our children's future. New supplies of platinum group metals can help to protect our environment when they are used in making equipment like vehicle emissions controls, fuel cells and hydrogen-powered vehicles. This precious metal is also used in dozens of medical applications.

Copper is used to deliver energy from green, renewable power sources and clean water to our homes. It is essential to building and strengthening the infrastructure needed to get our economy up and going again.

Nickel is used for stainless steel, providing the clean environment critical to food processing and even surgical instruments.

We currently import more then 40 percent of our copper, 85 to 90 percent of our platinum group metals and 100 percent of our nickel and cobalt. In addition to the significant economic rewards, utilizing our own resources dramatically reduces our dependency on foreign sources with troubled environmental and political records. Even as we continue to stress and expand recycling, we will not have adequate domestic supplies of these metals.

Want to know more? Better mining for our state and country are essential to all of us. We want to hear your thoughts, answer your questions and show how you can help. Email us now at .

For still more, up-to-date information on the important issues, go to www.miningminnesota.com.