Turtle Talk

From the AP:

TRAVERSE CITY, Mich. (AP) — Construction of a proposed nickel and copper mine in Michigan’s Upper Peninsula is being delayed because of poor market conditions, its parent company said Thursday.

But project manager Jon Cherry said the announcement by London-based Rio Tinto Group does not mean the Kennecott Eagle mine is off the table. Planning and preparations are continuing with the expectation that it eventually will be built, he said.

“Our offices in Michigan are remaining open and we are moving forward,” Cherry said. None of the 25 employees are being laid off, he said.

Rio Tinto, an international mining conglomerate, included its one-sentence statement about Kennecott Eagle in a lengthy 2008 earnings report Thursday. It said development of the mine was being “deferred until market conditions recover.”

The report did not say what “deferred” meant or how long the delay would last. A Kennecott spokeswoman said the reference was to financing for building the mine.

But construction already is on hold because of delays in approval of state and federal permits and a lawsuit filed by opposition groups, Cherry said.

“We are continuing to work on our permits, litigation and engineering design so that when the opportunity presents itself we will be poised to evaluate economic conditions and our next steps,” he said.

A sharp dropoff in demand for metals brought on by the worldwide recession led Rio Tinto to cut its worldwide work force 12.5 percent last year and slash capital investment to reduce debt.

Opponents said they hoped the announcement meant the company was having second thoughts about Kennecott Eagle. They fear the mine would pollute streams and groundwater with sulfuric acid and turn the quiet, woodsy countryside into an industrial zone. Kennecott Eagle says it can operate while protecting the environment.

“Rio Tinto’s immense debt, world markets, structural and technical problems with this mine and unanswered citizens’ concerns have led us to this juncture,” said Michelle Halley, attorney for the National Wildlife Federation.