LANSING, Mich. (WZMQ) -The Michigan Strategic Fund voted 7-2 on Tuesday to approve $50 million in state money for infrastructure tied to the Copperwood Mine, a copper mining project planned for Wakefield and Ironwood townships in Gogebic County.
What the money pays for
About $44.9 million goes to Highland Copper, the company behind the mine, for power, internet and communication lines. Another $5 million goes to the Gogebic County Road Commission to fix roads near the site. The state is also kicking in $7.5 million to rebuild a nearby stretch of County Road 519.
InvestUP CEO Marty Fittante, whose organization has pushed for the project, said the structure of the grant is meant to protect taxpayers.
“This was a site readiness grant that is broken between two recipients, Highland Copper and the Gogebic County Road Commission. The purpose is the same for both, though, and that’s to build infrastructure.” Fittante said. “This is not handing $50 million off. It’s being done responsibly and to ensure that they are moving forward with the project before it receives any money whatsoever, and then only on a reimbursable basis.”
Why the funding method is controversial
Normally, this kind of money needs approval from the Michigan Strategic Fund board and then a separate vote from lawmakers in the state House and Senate. This time, the state is using money the Legislature set aside back in 2022 for a different project that fell through, which officials say means it doesn’t need another vote.
Critics disagree. Some lawmakers have questioned why a company that stands to profit from the copper needs taxpayer help at all, and argue the board is using leftover money meant for a different project to avoid the usual legislative review.
The state’s economic development agency says it’s been in touch with Senate leaders and believes this is exactly the kind of project that money was meant for.
Fittante pushed back on the idea that the project has repeatedly failed, arguing it’s simply gotten caught up in a slow process.
“This has not been defeated. There’s never been a vote that has turned this request down. So when the process worked in their favor, and it wasn’t taken up in the Senate, that was fine. But now that the process works against their interests, now it’s broken and doesn’t work. And I just don’t think that’s fair.” Fittante said.
Why supporters want it built
The western Upper Peninsula has lost major employers over the decades, including the White Pine Mine in 1995, the Ontonagon paper mill in 2010 and the Ojibway Correctional Facility in 2018. Supporters point to an estimated 380 jobs and $425 million in investment from the project as an essential infusion that is desperately needed after decades of losses.
“This decades-overdue investment by the state will revitalize opportunities for growth and the community right alongside the new jobs created by this new mine,” said Sen. Ed McBroom, R-Waucedah Township.
Ryan Stern with the Michigan Building & Construction Trades Council said the impact could go well beyond the mine itself.
“One thing we’ve seen is when a large industrial organization comes into an area, the economics of the region flourish and more small businesses open. Our schools are doing better. It provides hope that residents can live and work in their community, that 18-to 25-year-olds that are currently our number one export don’t have to leave. They can stay there and work,” Stern said.
“This step received bipartisan support. Our politics weren’t even a topic in this one, whether it was Republican or Democrat. It was just people from all different backgrounds coming together to try and make this project a reality,” Fittante said.
Environmental concerns remain
Opponents, including a group called Protect the Porkies, worry about the mine’s impact near the Porcupine Mountains Wilderness State Park and Lake Superior. Fittante acknowledged those concerns but said he trusts the state’s review process.
“I think it’s fair for people to have concerns. But the reality is, I am not a subject matter expert, nor are 99.9% of those that oppose this project. The experts have spoken, and that’s the Department of Environment, Great Lakes, and Energy. It is not an easy bar to pass,” Fittante said, pointing to the Eagle Mine in Marquette County as proof mining and environmental protection can coexist under the state’s rules.
What’s next
Copperwood still needs to finish a feasibility study before a final construction decision, which Fittante expects in the first quarter of 2027. If it moves forward, the company estimates it could start mining copper as early as 2030.
