Michigan Grants Approval for Nickel Exploration Lease to Tesla Supplier, Talon Metals
A mine developer seeking critical minerals in Michigan and Minnesota has received approval from the Michigan Department of Natural Resources (DNR) to drill on public land in the Upper Peninsula. Talon Metals has been granted a mineral lease to explore for nickel deposits under 23,000 acres in Baraga, Houghton, Iron, and Marquette counties. This approval is the largest subsurface mineral lease granted in Michigan since initial drilling for the Eagle Mine near Ishpeming.
Michigan
Talon’s 2022 acquisition of mineral rights on 400,000 private acres in the UP, along with a $20 million federal defense grant last year, paved the way for this approval. Nickel, crucial in aerospace and electric vehicle battery manufacturing, is a focus for Talon, which has a joint venture with Rio Tinto to supply Tesla with 165 million pounds of nickel from its Tamarack mine in Minnesota.
CEO Henri van Rooyen considers the UP highly prospective due to its unique geological location along a mid-continental rift formed over a billion years ago. Talon plans to bring its exploration expertise, funded by the Department of Defense, to discover high-grade nickel and copper mineralization in Michigan.
Drilling activities will take place near the nation’s only existing nickel mine, Lundin Mining Company’s Eagle Mine northwest of Marquette. The mine, in operation since 2014, is expected to close in 2027. Talon’s state and private leases allow drilling within two miles of Eagle Mine and less than a mile from the mine’s Humboldt Mill processing plant.
While Talon’s efforts align with the increasing demand for electric vehicles and battery metals, potential mine discoveries in Michigan would face years of permitting, regulatory scrutiny, and potential opposition over environmental concerns.
In Minnesota, Talon’s Tamarack project is facing opposition from tribal and environmental groups concerned about potential harm to local waters, a factor that derailed two other proposed nickel and copper mine projects in the state last year.
