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PolyMet and Minnesota Power agree on long-term contract
Date: 12/12/2006
Vancouver, British Columbia- PolyMet Mining Corp. (TSX-V: POM;
AMEX: PLM) (“PolyMet”) announced today that it has reached agreement with Minnesota Power, a division of ALLETE, Inc. (NYSE:ALE) whereby Minnesota Power will provide all of PolyMet’s electric service needs at its NorthMet project through 2018. NorthMet, 100%-owned by PolyMet, comprises a copper-nickel-precious metals ore-body and the nearby Erie Plant, located near Hoyt Lakes in the established mining district of the Mesabi Iron Range in northeastern Minnesota.
PolyMet plans to begin commercial operations at NorthMet by late 2008, pending completion of financing arrangements and receipt of regulatory approvals.
Once fully operational, it is anticipated that PolyMet will require approximately 70 megawatts of electric power, becoming one of Minnesota Power’s larger industrial customers. PolyMet’s energy requirement will be supplied from Minnesota Power’s base load generating facilities under the regulated contract.
The PolyMet electric service agreement will require the approval of the Minnesota Public Utilities Commission.
“Growing our energy business is a primary goal of ALLETE’s strategic plan so this is a terrific development for us,” said Don Shippar, ALLETE Chairman, President and CEO. “The working relationship and resulting service agreement we have developed with a new, large industrial customer like PolyMet confirms Minnesota Power’s ability to reliably meet the region’s growing energy needs in a responsible, cost-effective manner.”
William Murray, President and CEO of PolyMet commented, “Securing reliable, competitively priced energy is becoming an ever greater challenge for the mining industry worldwide. We are pleased that Minnesota Power is working diligently with us to ensure that we are able to proceed with development of NorthMet, once we receive operating permits.”
He continued, “The terms of this agreement provide for significant savings compared with the electric power cost assumptions in our Definitive Feasibility Study. This is another positive step as PolyMet continues with permitting and final design of NorthMet.”
ALLETE’s corporate headquarters are located in Duluth, Minnesota. ALLETE provides energy services in the upper Midwest and has significant real estate holdings in Florida. More information about the company is available on
ALLETE’s Web site at www.allete.com.
PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that owns 100% of the NorthMet copper-nickel-precious metals ore body and 100% of the Erie Plant, a large processing facility
located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet has completed its Definitive Feasibility Study and is seeking environmental and operating permits in order to commence commercial production anticipated in the second half of 2008.
For further information, please contact:
William Murray Douglas Newby
President and CEO Chief Financial Officer
+1 (604) 669-4701 +1 (646) 879-5970
wmurray@polymetmining.com dnewby@polymetmining.com
Media and Government Contact: Investor Contact:
Warren Hudelson Alex Macdougall
Executive Vice President Macdougall Consultants, Ltd.
+1 (218) 245-3634 +1 (519) 887-6625
whudelson@polymetmining.com amacdougall@polymetmining.com
POLYMET MINING CORP.
Per: “William Murray”
