Mining Company Closing Office In Northern Wisconsin

MADISON, Wis. (AP) — The company looking to open an iron ore mine in northern Wisconsin announced Friday it was closing its office in Hurley, saying future investment was "unfeasible at this time," a move that marks the end for now of the project near Lake Superior that sparked fierce debate and opposition from environmentalists and tribal members near the site.

Bill Williams, president of mining company Gogebic Taconite, released a statement announcing the decision. It comes after field explorations were put on hold due to mounting obstacles and years of opposition from environmentalists and local tribal members.

Williams said in the release that the Florida-based company will "continue to investigate the possibility of pursuing a permit to mine" but can't justify having an office in Hurley without the prospect of immediate action.

"Our extensive environmental investigation and analysis of the site has revealed wetland issues that make major continued investment unfeasible at this time," Williams said. He also cited uncertainty over whether the 1,000-foot-deep mine would run into trouble with the U.S. Environmental Protection Agency, which last summer restricted plans for a gold-and-copper mine in Alaska under the Clean Water Act.

A spokeswoman for Gov. Scott Walker, a vocal supporter of the project, called the decision "unfortunate."

"We remain committed to working with companies interested in creating quality, family-supporting jobs in Wisconsin," Walker spokeswoman Laurel Patrick said in a statement.

State Sen. Tom Tiffany, a Hazelhurst Republican who championed the project, said the office's closing would not prevent the mining project from moving forward.

"I believe this ore body is going to be mined at some point, whether by Gogebic Taconite or someone else," Tiffany said. "But as long as we have a federal government that is so hostile toward (these projects) it will be hard to get the permit to do it."

Gogebic Taconite has been looking to dig a 4½-mile long iron mine straddling the Iron and Ashland County line in the Penokee Hills since 2011. Gov. Scott Walker got behind the project, and the Republican-controlled Legislature passed a bill in 2013 easing environmental regulations to clear the way for the mine and the promise of bolstering the local and state economy.

Company officials had promised that the first phase of the project would last at least 35 years and generate about $1.4 billion in state and local tax revenue, creating 700 jobs for people in the area and 2,000 ancillary jobs for the region's service and transportation industries.

Conservationists warned that the open pit mine would pollute the waters and ruin one of Wisconsin's last pristine areas in the Penokee Hills. Opposition was also fierce from the Bad River Band of Lake Superior Chippewa, whose reservation is just north of the mine site.

Mike Wiggins, Jr., chairman of the tribe, said he was optimistic that Gogebic Taconite would discontinue its efforts entirely.

While Gogebic didn't shut out the possibility of restarting the project, the news "definitely signals the end for now," said Amber Meyer Smith, a lobbyist for environmental advocacy group Clean Wisconsin, which opposed the mine.

Local officials concerned about the project also passed a number of ordinances that company officials had previously said were causing them to rethink the scope and viability of the project.

Gogebic's office will close on Sunday. Williams, the company president, said money remained to complete reclamation activities at monitoring and testing sites on the mine property.

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