Highland CEO meets with Michigan Strategic Fund officials

WAKEFIELD — Work to develop and launch a new copper mine north of Wakefield drew Highland Copper Interim CEO Barry O’Shea to the Gogebic Range this week.

His message regarding the Copperwood Project wasn’t momentous, but it was positive.

Highland officials appeared at a meeting of the Michigan Strategic Fund held at Gogebic Community College, advancing their case for state support for the mine.

“They’re considering giving us a grant of $50 million,” said O’Shea.

The funds would be used to develop infrastructure for the mine.

“We are excited the we are under consideration. It’s another boost for the project,” said O’Shea.

Among the positives presented to the state panel was strong local support.

At Tuesday’s news conference at Highland offices in Wakefield, engineer Mike Foley pointed to the 21 individual resolutions of support from county, city and township governments in Gogebic and Ontonagon counties, as well as Iron County, Wisconsin, during 2023.

“That sends a very strong message,” said Foley.

As an arm of the Michigan Economic Development Commission, the Strategic Fund seeks projects that are near-term, buildable and investible, O’Shea said.

Community benefit, as well as community support, is a key indicator, O’Shea said.

“It was a good discussion,” O’Shea said. “They indicated they wanted to hear more.”

O’Shea outlined some of the basic arithmetic in mine development.

It will be expensive, about $390 million in initial construction cost.

On the other hand, the relatively rich ore body — averaging about 1.5% copper — would mean that investment has a three-year payback, assuming a copper price of $4 a pound.

Foley outlined the environmental work, including a great amount of wetland mitigation, which was undertaken this summer and is to be completed during the coming construction season.

In addition to mitigation and creating new wetlands, a major culvert crossing a steam will be completed.

Foley said Highland has met its deadlines for the wetlands permit, and that the remaining mining permits are in good order for the foreseeable future.