Munkhbold Gombo Tonya J.

Hansen ECON 350 (Tu/Th 9:00 10:15) Journal Articles for October Council approves Minnesota mining leases By John Myers, Forum News Service, Inforum Published October 27, 2013 According to this article, there is a chance for mining companies that are looking for more copper, nickel, gold and other valuable metals in northeastern Minnesota to prospect on more land after a decision by the states Executive Council in St. Paul, Minnesota.

The panel of state officials voted 4 to 1 to approve so-called mineral leases for exploration under 31 tracts of land where the state of Minnesota holds the mineral rights across Aitkin, St. Louis and Lake Counties. The leases, which award exclusive rights to look for minerals at those sites, had been on hold for one year, while opponents challenged the need for an environmental review before the leases could be awarded. Following the news, some Lake County residents had argued that the Minnesota Department of Natural Resources should conduct and environmental review before the leases are put up for bid. But the Minnesota Department of Natural Resources disagreed, saying any such review should come only if and when a mining company decides to start drilling.

Frank Ongaro, executive director of Mining Minnesota, a copper mining industry group said that This is good news because it reaffirms that Minnesota has good process in place for mineral leases, it also sends a good message to the global investment community that Minnesota is supportive of mining. These mineral leases are auctioned off every year by the Minnesota

Department of Natural Resources, and the companies pay a small fee to the state for exclusive exploration rights and then, if any minerals are mined, the state receives royalties.

When mining royalties begin flowing into the state as mining begins, many mining supporters and the Minnesota Department of Natural Resources are saying that the state mineral exploration leases are a crucial first step in pinpointing marketable deposits of minerals, and the first step toward creating hundreds of jobs and pumping millions of dollars into state coffers. The Minnesota Department of Natural Resources has not yet announced whether it plans to conduct a minerals lease auction this year.