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The Crandon The Crandon zinc-copper zinc-copper shaft mine shaft mine proposed in proposed in Wisconsin Wisconsin Upstream of Upstream of the Mole Lake the Mole Lake Chippewa Reservation Chippewa Reservation and the Wolf River and the Wolf River

Exxon’s first round (1976-86)

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The Crandon zinc-copper shaft mine proposed in Wisconsin Upstream of the Mole Lake Chippewa Reservation and the Wolf River. 1976 Discovers one of North America’s largest zinc/copper sulfide ore bodies 1981 Lobbyist James Klauser says WI “could host up to 10 metal mines by 2000...." - PowerPoint PPT Presentation

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Page 1: Exxon’s first round  (1976-86)

The Crandon The Crandon zinc-copper zinc-copper shaft mine shaft mine proposed in proposed in WisconsinWisconsin

Upstream of Upstream of the Mole Lake the Mole Lake Chippewa ReservationChippewa Reservation

and the Wolf Riverand the Wolf River

Page 2: Exxon’s first round  (1976-86)
Page 3: Exxon’s first round  (1976-86)

Exxon’s first roundExxon’s first round (1976-86)

1976 Discovers one of North America’s largest zinc/copper sulfide ore bodies

• 1981 Lobbyist James Klauser says WI “could host up to 10 metal mines by 2000...."

• 1983Mines exempted from clean groundwater standards, toxic waste standard, foreign land ownership law.

• 1986 Withdraws its permit application after Final EIS.

• 1987 Klauser appointed Secretary of Administration

in Tommy Thompson’s cabinet.

• 1988 WI declares Wolf River "Outstanding Resource Water"

Page 4: Exxon’s first round  (1976-86)
Page 5: Exxon’s first round  (1976-86)

Metallic mining concernsMetallic mining concernsMetallic mining concernsMetallic mining concerns• Environmental Environmental

– Sulfides (sulfuric acid) contaminate for 200,000 yearsSulfides (sulfuric acid) contaminate for 200,000 years

– Heavy metals, cyanide, arsenic, etc.Heavy metals, cyanide, arsenic, etc.

– 10,000 miles of U.S. rivers poisoned10,000 miles of U.S. rivers poisoned

• EconomicEconomic– Boom-and-bust effectBoom-and-bust effect

– Impact on existing industriesImpact on existing industries

• CulturalCultural– Native culturesNative cultures

– Rural lifestyleRural lifestyle

• Environmental Environmental – Sulfides (sulfuric acid) contaminate for 200,000 yearsSulfides (sulfuric acid) contaminate for 200,000 years

– Heavy metals, cyanide, arsenic, etc.Heavy metals, cyanide, arsenic, etc.

– 10,000 miles of U.S. rivers poisoned10,000 miles of U.S. rivers poisoned

• EconomicEconomic– Boom-and-bust effectBoom-and-bust effect

– Impact on existing industriesImpact on existing industries

• CulturalCultural– Native culturesNative cultures

– Rural lifestyleRural lifestyle

Page 6: Exxon’s first round  (1976-86)

Environmental concernsEnvironmental concernsEnvironmental concernsEnvironmental concerns

• Run-off of sulfuric acid, heavy metalsRun-off of sulfuric acid, heavy metals– impacts on fish, wild rice, other aquatic lifeimpacts on fish, wild rice, other aquatic life

• Drawdown of groundwater table from shaft pumpingDrawdown of groundwater table from shaft pumping– Impacts on water supplies, wild rice, wetlandsImpacts on water supplies, wild rice, wetlands

• Pumping groundwaterPumping groundwater– Treatment of contaminated water in perpetuityTreatment of contaminated water in perpetuity

– Wastes monitored for 40 yearsWastes monitored for 40 years

• Run-off of sulfuric acid, heavy metalsRun-off of sulfuric acid, heavy metals– impacts on fish, wild rice, other aquatic lifeimpacts on fish, wild rice, other aquatic life

• Drawdown of groundwater table from shaft pumpingDrawdown of groundwater table from shaft pumping– Impacts on water supplies, wild rice, wetlandsImpacts on water supplies, wild rice, wetlands

• Pumping groundwaterPumping groundwater– Treatment of contaminated water in perpetuityTreatment of contaminated water in perpetuity

– Wastes monitored for 40 yearsWastes monitored for 40 years

Page 7: Exxon’s first round  (1976-86)

44 million tons of waste44 million tons of waste

Tailings Management Area– 90 feet deep

– largest toxic dump in WI history: 282 football fields

• Waste rock backfill of shaft

• Release of toxic dust into air

Page 8: Exxon’s first round  (1976-86)

“You couldn’t find a more

difficult place to mine.”

-Exxon engineer

Wetlands & springsin 4,800-acre mine site

Page 9: Exxon’s first round  (1976-86)

Company’s environmental argumentsCompany’s environmental arguments

• “Only old mines pollute”– Western U.S. acid mine drainage

• “New technologies”– Wastewater treatment– Extraction of sulfuric acid from wastes

• Isolate mine through “grouting”

Page 10: Exxon’s first round  (1976-86)

Economic concernsEconomic concerns Effects on Wolf River tourism

• Lack of jobs for locals– alternative economic options not explored

• Boom-and-bust cycle– poorest areas often were

mine-dependent

• Sudden lay-offs or mine closure– swings in metal prices,

reduced demands

Page 11: Exxon’s first round  (1976-86)

Company’s economic argumentsCompany’s economic arguments

• 400 jobs for mine operation– Keep kids in depressed rural area

• Secondary contracts to area businesses– Crandon, Rhinelander, Antigo benefit

• Mining equipment contracts– Milwaukee-area manufacturers

Page 12: Exxon’s first round  (1976-86)

Need for metals?Need for metals?Need for metals?Need for metals?

• Low pricesLow prices– Glut of zinc and copperGlut of zinc and copper– New sources in Russia, ChinaNew sources in Russia, China

• Less useLess use– Plastics/ceramics in autos, piping Plastics/ceramics in autos, piping – Fiber optics replacing copper wireFiber optics replacing copper wire

• More metallic recyclingMore metallic recycling

• Low pricesLow prices– Glut of zinc and copperGlut of zinc and copper– New sources in Russia, ChinaNew sources in Russia, China

• Less useLess use– Plastics/ceramics in autos, piping Plastics/ceramics in autos, piping – Fiber optics replacing copper wireFiber optics replacing copper wire

• More metallic recyclingMore metallic recycling

Page 13: Exxon’s first round  (1976-86)

Cultural concernsCultural concerns

• Wild rice beds

• Future of hunting/ fishing/gathering

• Burials and sacred sites

• Influx of outsiders

• Rural social fabric

Page 14: Exxon’s first round  (1976-86)

Ojibwe (Chippewa)Ojibwe (Chippewa)lands ceded in treatieslands ceded in treaties

Six Wisconsin reservations

Treatiesguarantee

tribal accessto resources

Page 15: Exxon’s first round  (1976-86)

Treaties (off-reservation rights)Treaties (off-reservation rights)

• “Supreme Law of the Land” (Article VI Constitution)

• Federal courts recognize rights– Rights in ceded territories retained, not granted

– Boldt 1974 WA, Voigt 1983 WI, Mille Lacs 1999 MN

• Legal tool to guarantee access to resources– Not mineral rights, but prevent harm to resources

• Basis of resource co-management with non-Indian govt’s

Page 16: Exxon’s first round  (1976-86)

Sovereignty (on-reservation rights)Sovereignty (on-reservation rights)

• Self-determination, not control by state/local gov’ts– “Nation within a nation,” “domestic dependent nation”

• Cultural/economic autonomy, not assimilation

• Federal trust responsibility to protect reservation– “EPA Treatment-As-State” in Clean Air Act, Clean Water Act

• International legal tools– United Nations, international agreements

Page 17: Exxon’s first round  (1976-86)

Treaty rights historyTreaty rights history

1837 & 1842 Treaties guarantee Ojibwe (Chippewa) access to fish, wild game, rice, medicine plants

• 1854 Four large WI Ojibwe reservations established after “death march” removal fails.

• 1908 State bans off-reservation tribal spearfishing.

• 1934 Mole Lake, St. Croix reservations established.

• 1983 Voigt decision upholds treaty in 1974 LCO case

• 1985 White sportfishers’ anti-treaty backlash begins.

Page 18: Exxon’s first round  (1976-86)

Treaty rights conflictsTreaty rights conflicts

• 1988 Large mobs confront spearing, although Ojibwe harvest 3% of walleye.

• 1989 Witnesses monitor racial violence and harassment. Ojibwe reject treaty “lease.”

• 1992 Federal injunction against racial harassment; anti-treaty groups’ environmental claims discredited.

• 1995 Similar clash averted around Menominee treaty; sportfishers see mining as greater challenge.

Page 19: Exxon’s first round  (1976-86)

“We have more in common with the anti-Indian people than we dowith the State of Wisconsin.” — Spearfisher Walt Bresette, 1990

Page 20: Exxon’s first round  (1976-86)

Exxon returns (1992-98)Exxon returns (1992-98)

• 1992 Exxon returns to Crandon to reapply for mine permit (with Phelps-Dodge briefly).

• 1993 Exxon and Canada’s Rio Algom form Crandon Mining Company (CMC). Lynne mine plan dropped by Noranda in Oneida County. Flambeau mine begins 4-year shipment of copper ore from Ladysmith in Rusk County.

• 1995 CMC plan to pipe wastewater to Wisconsin River heightens opposition.

• 1996 Wolf & Wisconsin R. speaking tour draws 2000.

• 1997 Nashville voters oust

pro-mine town board, elect new board to rescind “local agreement” with company.

Page 21: Exxon’s first round  (1976-86)

Niiwin (“Four”) TribesNiiwin (“Four”) Tribes• Mole Lake Chippewa (1 mi.)

– wild rice beds, water quality

• Forest Co. Potawatomi (5 mi.) downwind)– air quality, toxic dust

• Menominee (30 mi.) – Wolf River water

• Mohican (Stockbridge-Munsee)

Page 22: Exxon’s first round  (1976-86)

Menominee Sustainable ForestryMenominee Sustainable Forestry

Page 23: Exxon’s first round  (1976-86)

Overcoming divisionsOvercoming divisions

• Race– Native Americans vs.

white sportfishers

• Class– Labor unionists vs.

environmentalists

• Region– Rural northern WI vs .urban

southern WI

Page 24: Exxon’s first round  (1976-86)

Alliance to stopAlliance to stopCrandon mineCrandon mine

Sportfishing clubs– fish, surface water, toxics

Environmental groups– wetlands, groundwater,

wildlife/species

Native Americannations

–cultural concerns–wild rice, sacred sites

Page 25: Exxon’s first round  (1976-86)

GrowingGrowingalliancealliance

• Rural residents– economic impacts on tourism industry, northern lifestyle

• Labor unions– environment, company health/safety track records

• Students– corporate control, future sustainability

• Farmers– feeder line to mine from Duluth-Wausau transmission line

Page 26: Exxon’s first round  (1976-86)

ProposedProposedtransmission linestransmission lines

From dams that flooded Cree land

in Manitoba……through MN/WI farmlands,

partly to provide power for mine.

Page 27: Exxon’s first round  (1976-86)

http://www.wakeupwisconsin.com

SaveSaveOur Our UniqueUniqueLandsLands(SOUL)(SOUL)

FightingDuluth-Wausau345-kilovolttransmissionline, opposing115-kv feeder line to Crandon

Page 28: Exxon’s first round  (1976-86)

Perrier/NestlePerrier/Nestlein Wisconsinin Wisconsin

Mecosta Co., Michigan

Adams Countyfarmers protect

rural wells fromhigh-capacity pumps;

Ho-Chunk protectsacred sites,

2000-2002

Page 29: Exxon’s first round  (1976-86)

Rio Algom goes it aloneRio Algom goes it alone (1998-2000)

• 1998 Exxon sells most Crandon mine interests to Rio Algom, which sets up Nicolet Minerals Company (NMC).

• 1998 Mining Moratorium law passed, undermined by DNR

• 1999 NMC revises mine plans, sets back pipeline.

• 1999 Mole Lake, Potawatomi win EPA backing for tribal laws

• 1999 Federation of Fly Fishers rates the Wolf River as most endangered U.S. river.

• 2000 Speaking tour/rally against Crandon mine and Duluth-Wausau transmission line.

Page 30: Exxon’s first round  (1976-86)

Tribal andTribal andFederal GovernmentFederal Government

• Tribal– Mole Lake “Treatment As State” (Clean Water Act)

– Potawatomi “Treatment As State” (Clean Air Act)

– Menominee, Potawatomi and Mole Lake technical research

• Federal– Army Corps of Engineers wetlands permit;

– Possible role of EPA

– Federal lawsuits on DNR permit

Page 31: Exxon’s first round  (1976-86)

Local and StateLocal and StateGovernmentGovernment

• Local– Nashville local agreement lawsuit;

– Downstream gov’t resolutions

• State – DNR permit process (2004 ?)

– Mining reform bills

Page 32: Exxon’s first round  (1976-86)

Wisconsin miningWisconsin miningreform billsreform bills

• Mining moratorium (passed 1998)

– Requires companies to show “safe” mines– DNR assessing 3 examples in AZ, CA, Canada

• Cyanide ban (Passed Senate 2001; reintroduced 2003)

– Mine would use up to 200 tons a year– Spills around world killed fish

• No Special Treatment (passed Senate 2001; reintroduce 2003)

– End legal exemptions for mining wastes

Page 33: Exxon’s first round  (1976-86)
Page 34: Exxon’s first round  (1976-86)

Typical environmental movementsTypical environmental movements

• Stereotype of environmentalists– Urban-based

– White

– Upper middle class

– “Not In My Back Yard”

• Portrayal by companies– Hippies

– Yuppie elitists

– Don’t care about rural jobs

Page 35: Exxon’s first round  (1976-86)

19941994

20002000

Wisconsin Wisconsin movement movement

• Unlikely Alliances– Rural-based

– Multiracial

– Middle/ working class

– Multigenerational

– “Not In Anyone’s

Back Yard”

• Dilemma for companies– Grassroots, common folk

– Cannot easily be defeated

Page 36: Exxon’s first round  (1976-86)

Drawing Drawing from strands offrom strands of

Wisconsin historyWisconsin history

• Progressive populism– LaFollettes

• Regional pride– Northern Wisconsin

vs. “Madison”

• Environmental ethics– Muir, Leopold

• Native American rights– Opposed removal, treaty

violations, termination

Page 37: Exxon’s first round  (1976-86)

BHP Billiton in controlBHP Billiton in control (2000-2003)

• 2000 Rio Algom and its NMC purchased by London-based South African miner Billiton.

• 2001 Billiton merges with Australian mining giant Broken Hill Proprietary (BHP), forms BHP Billiton.

• Nov. 2001 Cyanide Ban and “No Special Treatment” bills pass

WI Senate, held up in Assembly

• June 2002 BHP Billiton signals willingness to sell site to public. Alliance for joint management

• Sept. 2002 NMC staff laid off but permit process continues.

Doyle backs public acquisition.

• April 2003 Mine site sold to Northern Wisconsin Resource Group, owned by logging company ex-owners of site. It could find no corporate partner.

Page 38: Exxon’s first round  (1976-86)

CRANDONCRANDON

PROTESTSPROTESTSAUSTRALIAAUSTRALIA

(BHP shareholders’

meeting, 2001)

SOUTH AFRICASOUTH AFRICA

(at Sustainability

Summit, 2002)

Page 39: Exxon’s first round  (1976-86)

Mining industry reactionMining industry reactionto Wisconsin oppositionto Wisconsin opposition

“The increasingly sophisticated political maneuvering by

environmental special interest groups has made permitting a mine in

Wisconsin an impossibility.”

—North American Mining (Toronto), 1998

“Wisconsin’s low investment attractiveness score suggests the

impact of that state’s moratorium on mining, and a well-publicized

aversion to mining. One vice president of exploration complains that

in Wisconsin, you ‘can’t get anything done that is meaningful’.”

—Fraser Institute Survey of Mining CEOs (Vancouver), 2000

Page 40: Exxon’s first round  (1976-86)

Mining industry reactionMining industry reaction

The Vancouver-based

Fraser Institute issues an annual

Investment Attractiveness Index

ranking the reception that all

countries, states and provinces

give the mining industry.

Wisconsin ranked at the global Wisconsin ranked at the global bottom in 2003, with a score of bottom in 2003, with a score of 13 out of 100.13 out of 100.

Page 41: Exxon’s first round  (1976-86)

More miningMore miningindustry reactionindustry reaction

Wisconsin anti-mining industry websites are operated by

“barbarians at the gates of cyberspace.”

—Mining Voice (Washington), 1998

“The Wolf Watershed Educational Project (WWEP), a U.S.-based

alliance of environmental groups, Native American nations, local

residents, unions and students ...is just one example of what is

becoming a very real threat to the global mining industry:

global environmental activism...”

--Mining Environmental Management (London), 2000

Page 42: Exxon’s first round  (1976-86)

The End: Oct. 28, 2003The End: Oct. 28, 2003Forest County Potawatomi and Mole Lake

announce purchase of mine site for $16.5 million.

Page 43: Exxon’s first round  (1976-86)

The End: Oct. 28, 2003The End: Oct. 28, 2003Mole Lake takes ownership of Nicolet Minerals Company

“We rocked the boat;Now we own the boat.”

Page 44: Exxon’s first round  (1976-86)

The End: Oct. 28, 2003The End: Oct. 28, 20035,000-acre mine site will be managed to protect natural

and cultural resources for future generations.

Page 45: Exxon’s first round  (1976-86)

The End: Oct. 28, 2003The End: Oct. 28, 2003Peace comes to Crandon area after 28 years of conflict.

““Now the Now the war is over.”war is over.”

Page 46: Exxon’s first round  (1976-86)

The End: Oct. 28, 2003The End: Oct. 28, 2003Native/non-Native grassroots alliance wins a

victory of of national and global relevance.

Page 47: Exxon’s first round  (1976-86)
Page 48: Exxon’s first round  (1976-86)
Page 49: Exxon’s first round  (1976-86)
Page 50: Exxon’s first round  (1976-86)

Websites on Crandon mine Websites on Crandon mine

No Crandon Mine linkshttp://www.nocrandonmine.com

Midwest Treaty Networkhttp://www.treatyland.com

Nicolet Minerals Companyhttp://www.crandonmine.com

Page 51: Exxon’s first round  (1976-86)

Books on Wisconsin miningBooks on Wisconsin mining

New Resource Wars(1993) by Al Gedicks

Resource Rebels(2001) by Al Gedicks

Walleye Warriors(1999) by Walt Bresette

And Rick Whaley