The Michigan Strategic Fund board has postponed a decision on a $50 million grant request for the Copperwood Mine project in the western Upper Peninsula. During a special meeting, the request by Highland Copper, a Canadian company also pursuing the White Pine North copper mine project, was referred to a subcommittee for further scrutiny.
The Copperwood Mine, situated near Porcupine Wilderness State Park in Gogebic County, is poised to significantly impact the local economy. According to Vicki Schwab, MEDC’s Upper Peninsula managing director, the mine could employ about 380 people with annual wages ranging between $80,000 and $120,000. This potential boost in income levels is seen as a transformative opportunity for a region grappling with economic and demographic challenges.
The request for funding comes from the Strategic Site Readiness Program, part of the SOAR fund, which allocates taxpayer money to private projects to stimulate Michigan’s business environment. However, board member Dan Meyering raised concerns about the necessity of state investment in the Copperwood Mine, given its promising financial projections and Highland Copper’s current market cap.
Highland Copper CEO Barry O’Shea reported the company’s market cap is around $50 million to $60 million, with about $30 million in cash reserves. O’Shea emphasized the significant impact a state grant would have on attracting further investments and endorsements for the Copperwood Mine project.
Board member Charles Rothstein pointed out the disparity between the size of the project and Highland Copper’s financial stature, suggesting that the grant request was substantial and the project’s ownership structure might change depending on financing outcomes. He expressed support for the project but highlighted the need for more concrete financial details.
This delay in grant approval presents a dilemma for Highland Copper. Without the grant, securing additional financing becomes challenging, yet the grant’s approval hinges on a clearer understanding of the project’s financial and ownership structure. As the board awaits more information, the future of the Copperwood Mine, and its potential economic impact on the region, hangs in balance. 
