$50M for controversial UP copper mine on chopping block in Michigan budget

Forthcoming state budget not expected to include $50 million for controversial mining project in Michigan’s Upper Peninsula
UP lawmakers had sought funding for the project, but a state lawmaker and House spokesperson say it won’t make the cut
Local officials and economic developers support the mine, but environmental groups raised concerns

Funding for a proposed copper mine near the Upper Peninsula’s Porcupine Mountains appears to be on the chopping block as lawmakers race to finalize a new state budget.

Republican lawmakers in the Upper Peninsula have advocated for earmarking $50 million in taxpayer dollars to Wakefield Township in the western UP, about five hours west of the Mackinac Bridge.

If approved, the money would fund infrastructure improvements supporting Highland Copper Co.’s efforts to open a $450 million mine.

The grant proposal is backed by local officials and economic developers, but some legislators and environmental advocates say the project could threaten the nearby Porcupine Mountains Wilderness State Park and Lake Superior.

Rep. Carrie Rheingans, an Ann Arbor Democrat, said Wednesday on social media that she had been told the Copperwood mine funding will “NOT” be in the final budget bills, which lawmakers have not yet seen.

Related:

Gideon D’Assandro, spokesperson for Republican House Speaker Matt Hall, confirmed that characterization later Wednesday with Bridge Michigan.

But Sen. Ed McBroom, an Upper Peninsula Republican who supports the Copperwood Project, told Bridge in a text message that the budget is far from a done deal.

“Lots of negotiations yet to go,” he wrote, adding, “I’m not worried.”

The attempt to add funding for the mine project to the state budget comes after several unsuccessful efforts to get similar funding through an economic development subsidy.

Rep. Greg Markkanen, R-Hancock, first put in the request in April. It was among nearly 800 earmark requests seeking $3.3 billion in the 2026 budget, a list that has grown in recent days during final negotiations.

Company projections say the copper mine will harvest at least $3.4 billion worth of the critical mineral used in power transmission and electronics, based on recent prices. That will make it profitable after two years of operations, according to the projections.

“Copperwood, at the end of the day, is one of the most advanced copper projects in the US, and it’s time to build it,” Highland CEO Barry O’Shea recently told Canadian financial reporting website Stockhouse in an opinion interview.

Citing the project’s lack of investors, the Michigan Strategic Fund board hit pause on a $50 million request to support road improvements and other infrastructure changes in January 2024.

Highland Copper told the state that the project would result in 380 new jobs, with state projections saying it could result in $15 million in annual municipal and state tax revenue.

The western UP has struggled since the last major mining operation closed in the mid-1990s. Opponents remain unconvinced. Protect the Porkies, an environmental group, has mobilized over the initiatives, getting 460,000 signatures on a petition against the mine.

“Subsidizing a foreign company to mine next to and underneath our most beloved old growth forest state park, ship the copper to Canada, and leave behind a massive waste pile on topography sloping into Lake Superior is a move that defies common sense and is not aligned with Michigan interests,” leader Tom Grotewahl previously told Bridge.

The steep taxpayer-funded subsidy has also drawn attention from legislators who are increasingly skeptical of the value of economic development incentives. A recent Bridge analysis showed that despite promising $2.5 billion to private businesses for job growth during Gov. Gretchen Whitmer’s tenure, the incentives have only delivered 13,000 jobs.

Copperwood received a new air quality permit in February from the Michigan Department of Environment, Great Lakes, and Energy, allowing the project to continue moving forward.

Public comment pushed the state’s Air Quality Division to place additional limits on the mine, including allowing tests by the state at any time, instead of just once.

Markkanen’s earmark request would address road upgrades, making County Road 519 available for year-round use. It also would increase power capacity and telecommunications performance across western Gogebic County.