Mining in the Midwest: Economic Engine or Environmental Gamble?

Mining has been central to the Midwest’s economy for over a century, especially in northeastern Minnesota, Wisconsin, and Michigan. The region’s iron ore fueled the U.S. steel industry and supported local jobs, revenues, and supply chains. Since the late 1800s, mining activity has shifted with changes in global markets and technology.

Across Minnesota, Wisconsin, and Michigan, a fresh wave of mining proposals—focused on copper, nickel, cobalt, and other critical minerals—has reignited a familiar debate. Supporters see economic revival and national opportunity. Critics see environmental risk and a challenge to a different, increasingly dominant economy: outdoor recreation and tourism. The Midwest is being forced to answer a fundamental question: what kind of economic future does it want?

Unlike the iron mining that built the region, today’s proposals center on sulfide-ore deposits. Metallic sulfide mining extracts metals from sulfur-containing ores by removing groundwater, drilling, and blasting. Most of the excavated material becomes waste, as only a small portion is purified into usable metal. After extraction, chemicals separate the metal from sulfur and other impurities, followed by smelting—heating and melting the minerals to further refine them. Some mines produce up to 99% waste tailings.

Demand for these minerals, essential for electric vehicles, data centers, renewable energy systems, and modern electronics, is rising rapidly. This trend is driving increased pressure to establish a domestic supply.

In Minnesota, lawmakers are considering multiple proposals that would reshape how mining projects are permitted and regulated. Some legislators have introduced bills intended to strengthen environmental protections for sulfide mining projects, including tighter oversight of tailings dams and water quality. Other proposals move in the opposite direction—seeking to streamline permitting and to declare Minnesota “mining-friendly” to compete for investment in mineral development. Iron Range officials have urged lawmakers to speed up resource development permits, citing delays that have hindered projects needed to offset lost mining jobs.

At the federal level, the debate over critical minerals has become even more prominent. In January 2026, the U.S. House approved a resolution permitting mining on 225,000 acres of the Superior National Forest near the Boundary Waters Canoe Area Wilderness (BWCA), effectively ending a two-decade moratorium. The proposal is now awaiting Senate action. The Trump administration implemented a “drill, baby, drill” agenda starting in 2025, targeting the expansion of domestic oil, gas, and mining to increase energy independence.

Mining Economic Benefits

A University of Minnesota Duluth study found that Minnesota’s iron mining industry contributed over 11,600 jobs, more than $1 billion in labor income, $2.1 billion in value-added spending, and over $4 billion to the state economy.

Mining companies and their suppliers provide both direct and indirect jobs in transportation, utilities, and equipment maintenance. Each mining job often supports additional positions in other industries.

While mining brings economic benefits, its impacts are not universally positive. In northeastern Minnesota, iron mining employment drastically declined from over 16,000 workers in the 1970s to a fraction of that in later decades during downturns. A portion of the decrease in employment can be attributed to advances in equipment, which have reduced reliance on human labor. Communities heavily reliant on mining grapple with economic shocks, population decline, and a need to diversify into sectors such as manufacturing, services, and recreation.

The Rise of the Outdoor Economy

Outdoor recreation in the greater Lake Superior region is a major economic driver, generating over $52 billion annually. It supports thousands of jobs in tourism, hospitality, and retail, while attracting residents and investment to coastal communities in Minnesota, Wisconsin, and Michigan, exceeding the mining footprint in most areas. Critiques of mining projects suggest that pollution risks could deter visitors, reduce property values, and threaten recreation-based businesses, potentially costing thousands of jobs and hundreds of millions in income. For many communities, clean water, intact forests, and scenic landscapes are no longer just environmental assets; they are economic assets as well. That reality complicates the case for new mining development.

Minnesota: Battle Over the Boundary Waters

Nowhere is the tension more visible than in northeastern Minnesota. Proposed copper-nickel mining projects near the Boundary Waters have become a flashpoint in the national debate over resource extraction versus conservation. Supporters argue that these projects could supply critical minerals needed for the clean energy transition. Opponents warn that sulfide mining in such a sensitive watershed carries unacceptable risks.

“The Boundary Waters Canoe Area is an economic engine for northeastern Minnesota, drawing thousands of visitors each year who contribute significantly to the region’s outdoor economy,” according to the Friends of the Boundary Waters Communications Director, Pete Marshall. “This is the bedrock of northeast Minnesota’s economy. There hasn’t been a mine operating here for 20 years. Many small sustainable businesses have been growing for decades, not tied to mining.” BWCA tourists spend more than $78 million annually on lodging, outfitting services, food, and transportation, supporting approximately 1500 full- and part-time jobs, according to Headwaters Economics. The total regional impact far exceeds $100 million annually. This robust economic activity underscores the importance of outdoor recreation and tourism in sustaining jobs and local businesses. Visit the FWB website for more information, https://www.friends-bwca.org/

Marshall asserts that mining is incompatible with the Boundary Waters’ water-rich environment. “There are no documented examples of a large-scale sulfide mine that has operated and closed without causing water pollution, such as acid mine drainage or heavy metal contamination. The Boundary Waters contain some of the cleanest water in the world, and it is unacceptable to jeopardize this resource. Compromise is essentially a ‘Trojan horse’ to enable mining operations. Allowing one of the most polluting industries near such pristine water is intolerable. Even if fully operational, the mine would provide less than 0.5% of global copper needs, and much of the extracted copper is sold on the international market rather than remaining in the United States. A more sensible strategy would be to invest in improved copper recycling infrastructure. Only about one-third of U.S. copper is recycled. Increasing this rate would be cleaner and safer.”

Project owner Twin Metals Minnesota appears to be locally rooted. In reality, it is a subsidiary of Antofagasta PLC, a major mining company based in Chile. As a result, much of the financial return would likely leave the country, ultimately benefiting the Chilean Luksic family, which holds controlling interests in Antofagasta. Visit Twin Metal Minnesota at https://www.twin-metals.com/

Another proposed sulfide-ore mine is located 50 miles west of Duluth. Talon Metals’ Tamarack project targets high-grade nickel, copper, and cobalt. These materials are crucial for EV batteries and have already secured an agreement with Tesla.

Michigan: Mining at the Edge of Lake Superior

The Copperwood Project in Gogebic County is moving through its final engineering stages, with key financing and construction decisions expected soon. The project is owned by Highland Copper, a firm with limited operational mining experience whose stock trades in penny-stock territory.

Portions of the proposed mine sit adjacent to and extend beneath the Porcupine Mountains Wilderness State Park. One of many concerns is that underground mining could encroach beneath the Presque Isle River watershed. The site lies directly upstream from Lake Superior, and current plans indicate mining could occur as close as 100 feet below the lakebed.

To the east, White Pine North seeks to revive mining in a historic copper district, with a projected 22-year mine life and roughly 15,000 tons per day. Canadian mining firm Kinterra Capital recently acquired a majority stake in White Pine. This could bookend the Porkies with mining on both sides of the wilderness park.

Protect the Porkies (POP) founder Tom Gotewohl has voiced strong concerns about mining upstream from Lake Superior. “Nearly half a million people from around the state and nation have signed a petition opposing Copperwood’s development, he said. These folks are not against mining in principle; they recognize that the juncture of Lake Superior and the Porcupine Mountains is not an appropriate place for heavy industrial development.”

POP highlights that the project calls for storing more than 40 million tons of mine waste near Lake Superior. “The project would generate relatively few long-term jobs, with much of the economic value flowing out of the region,” according to Grotewohl.

Copperwood is seeking funding and public backing to become an active mine. Despite three legislative rejections, Governor Gretchen Whitmer may still seek funding for preliminary road and telecommunications projects in the 2027 state budget. Find out more about the Copperwood project at https://www.copperwoodproject.com/

Tourism contributes approximately $1.6 billion annually to the Upper Peninsula’s economy, while mining accounts for roughly $1.4 billion statewide, including non-metallic extraction. Critics argue that public investment in infrastructure tied to Copperwood will not deliver long-term regional benefit. Current expectations are that refining would occur in Canada, with no guarantee that the minerals would re-enter U.S. supply chains. In Michigan, outdoor recreation contributes $ 12 billion annually, according to POP.

“The proposed development would be situated in a water-abundant area near Lake Superior, which is the world’s largest freshwater lake. Think about the potential impact of mine activity on such a sensitive ecosystem, with water quality being a major concern,” said Grotewold. A widely cited 2012 study found that 92 percent of U.S. copper sulfide mines experienced containment failures, and all reported releases of toxic materials into surrounding environments. According to Grotewold, the project’s waste tailings basin slopes toward Lake Superior. If a tailings dam were to fail and heavy metals such as arsenic, mercury, and copper were spilled into Lake Superior, the consequences would be disastrous. For more information, visit Protect the Porkies at https://protecttheporkies.com/

Wisconsin: Politics in Play

Wisconsin gubernatorial candidate U.S. Rep Tom Tiffany is a pro-mining advocate who will have considerable influence if elected Governor in November. Tiffany authored “The Mining for America Act”, which repealed the state’s long-standing “Prove It First” law. Tiffany continues to promote “Made in America” energy and mineral development, urging state regulators to resist closing coal plants and advocating for increased logging and mineral extraction on federal lands. Tiffany has a relationship with the shadowy Texas-based American Stewards of Liberty (ASL), an organization that focuses on blocking environmental initiatives while promoting mining and logging. Because of Tiffany’s connections, ASL has infiltrated several northern WI counties to change land use plans and promote extractive industries.

The Lynne deposit in Oneida County contains zinc, lead, copper, gold, and silver. Local opposition over environmental risks, especially water contamination near the Willow River, led to a 2018 referendum where residents voted overwhelmingly against mining. Tiffany supports the development of a sulfide mine at Lynne. Green Light Wisconsin, a subsidiary of Green Light Canada, controls the Bend copper-gold deposit in Taylor County and the Reef gold prospect in Marathon County, both of which remain in exploration phases. While these projects are years away from permitting, they illustrate renewed interest in Wisconsin’s mineral potential as demand for domestic metals continues to soar. For more on the Wisconsin mining scene, check out Mining Impact Coalition of WI at https://www.facebook.com/groups/844216777267874/

Economic Crossroads: Battle for the Region’s Future

Mining generates tax revenue that helps fund schools, roads, and local government services. These funds fluctuate depending on the quantity and price of minerals. When mines close or cut back, the community receives fewer tax dollars and has to reduce services. Eric Rempala of Oneida County Clean Water Action (OCCWA). “The severe economic volatility of mining boom and bust cycles particularly wreaks havoc with small communities, as we have in Northern Wisconsin. But more importantly, it’s about the water. Our Northwoods nature-focused communities fiercely protect their lifeblood: clean interconnected lakes, rivers, streams, and wetlands.” OCCWA tracks water quality issues throughout the region. https://occwa.org/ The impacts of mining extend beyond job creation and tax revenue. Environmental remediation and water treatment can impose long-term costs.

Critical Minerals and Global Competitiveness

Demand for critical minerals has grown due to their importance in data centers, renewable energy, and high-tech manufacturing. Mining advocates argue that Midwest mining lessens reliance on foreign supplies, strengthens supply chains, and supports U.S. manufacturing. This is seen as strategic economic development that enhances national security, creates jobs, and captures value in the U.S. rather than abroad. Critics counter that economic gains are modest compared to environmental costs, and that profits from foreign-owned mining operations are exported rather than reinvested in local economies.

Toward a Balanced Future

Outdoor recreation generates substantial revenue and supports thousands of jobs. Finding ways to balance resource extraction with sustainable land use will determine whether mining enhances or undermines broader economic resilience. Understanding both the economic benefits and the broader impacts is essential for policymakers, communities, and stakeholders crafting strategies for a resilient future in the Midwest.

Tourism and outdoor recreation generate more than three times the total economic output of mining in the Upper Midwest, even though mining is often framed as the dominant economic engine in these resource-rich regions.

Across the Upper Midwest, the next decade of mining will likely be shaped as much by public policy as by geology. Critical minerals needed for energy transition technologies are drawing investment and political support, yet many proposed mines lie in sensitive Great Lakes watersheds.

As the Midwest stands at a crossroads, the choices made today will echo for generations. Will policymakers and communities seize the opportunity to forge a resilient future that balances economic growth and the legacy of pristine lakes and forests? The stakes have never been higher, because the battle for the region’s future will define not just the landscape, but what it means to be a good steward of America’s heartland. The next chapter begins now, and everyone has a role to play.

Editor's Note: Twin Metals has no direct phone number listed and didn’t return e-mail requests for an interview. Copperwood did not respond to phone calls and email requests.