In his final months in office, Gov. Tim Walz is demonstrating how much power his successor will wield over the Boundary Waters’ future.

The outgoing governor’s Department of Natural Resources announced it will cancel a mineral lease near the wilderness area in November. A subsidiary of Twin Metals, a company in hot pursuit of copper-nickel mining in northeastern Minnesota, holds the lease.

The agency’s cancellation came on the tail of a Walz executive order banning copper-nickel mining in the wilderness area’s watershed. 

Neither action is a final blow against mining around the treasured resource, but they leave future governors with templates for further curbs should they choose to use them.

How did this mineral lease fit within overall mining plans?

Companies have been circling the Boundary Waters with designs on nonferrous mining for decades. It’s not easy to keep all proposals and the mineral leases associated with them straight. 

Not all leases are part of active plans. Many of them are essentially dormant yet remain on the books. 

The canceled lease covers about 242 acres of state land east of Babbitt near Birch Lake Reservoir. On one hand, this is notable because it’s close enough to the Boundary Waters to be subject to the ban by executive order. On the other hand, the ban may not last past Walz’s departure from office.

Related: Walz order halts state action on mine near Boundary Waters, but federal process stays on track

So the cancellation can be seen as a more permanent block on that land being used for this type of mining. But there’s another wrinkle to note, which is that Twin Metals didn’t have this particular acreage in its latest project plans. 

As the DNR notes in a statement, “the canceled lease is not located within the area that Twin Metals has previously sought to mine.” 

If that’s the case, why is the cancellation a big deal?

It sets a precedent. 

Minnesota awards long-term mineral leases on state land to applicants with provisions attached. The part you need to know about amounts to something of a put up or shut up clause.

If the company doesn’t develop a mine or pay royalties to the state in an allocated time, the DNR can opt out. That point came this year, and the agency is exercising the right.

By doing it, the state is essentially providing a blueprint for batting down more leases. Friends of the Boundary Waters lists cancellation years for other leases in 2035, 2036, 2037 and 2043. Far off in the future, to be sure, but the advocacy organization and its allies are playing a long game.

The DNR’s action is a start during an otherwise challenging year in which the Trump administration overturned federal protections on the Boundary Waters, said Chris Knopf, executive director of Friends of the Boundary Waters. 

“Canceling this lease is a crucial first step,” he said. “It sets a precedent that could lead to the State canceling Twin Metals’ remaining state leases in the coming years.”

Twin Metals was disappointed in the decision. 

“We have invested considerable resources into exploring the minerals associated with this site,” the company said in a statement. “The canceled lease is also located on School Trust Lands, which are established in the Minnesota Constitution to fund every K-12 school district in the state and are intended to maximize revenue generation over the long term.”

Related: Far from the Boundary Waters, the Mille Lacs tribe resists another copper-nickel mine 

What are school trust lands? 

Twin Metals is referring to public land used to supplement school budgets. Every public school receives a cut from the state’s permanent school fund each year, which is in part tied to mining, timber or other industry production on school trust land.

“If developed in the future, this lease would contribute significant revenue for the fund,” Twin Metals noted in a statement. “Twin Metals has invested more than 16 years in extensive exploration, geological, environmental, hydrological and engineering work, doing so in strict accordance with all applicable state and federal regulations. We remain committed to advancing a sustainable underground mining project that will bring vital economic opportunities to northeastern Minnesota.”

Tying the lease to the fund is timely given a question on school trust lands will be on Minnesota ballots on Election Day. Voters will be asked whether to increase how much of the fund goes to schools.

Supporters of the constitutional amendment, which requires a majority of “yes” votes to pass, say investment growth should keep the fund healthy even with increased school distributions. The increase also wouldn’t raise taxes.

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