State nonferrous metallic mineral leasing - negotiated leases

State Executive Council approves lease amendments

On February 24, 2022, the State Executive Council approved the issuance of two negotiated metallic mineral lease amendments to Vermillion Gold, Inc. (Vermillion).

Vermillion holds state metallic mineral leases in Itasca and St. Louis counties and has been actively exploring for nonferrous minerals for a number of years. Vermillion’s current request added 120 acres of state-owned minerals to existing state metallic minerals leases located between the cities of Virginia and Gilbert. Revenues from the lease amendments will benefit St. Louis County, the city of Virginia, their respective school districts, and public schools statewide. A portion of the revenues would pay costs for the administration and management of state mineral resources.

Environmental screening

Before offering state lands and minerals for lease, the DNR collects extensive data on land uses and environmental features. This critical study of the land helps DNR determine whether to offer specific locations for lease and set special conditions the company must follow during exploration to protect Minnesota’s natural environment. For each lease request, the DNR carefully considers the presence of surrounding trout streams, wild rice waters, state trails and recreation sites, endangered species, native plant communities and other resources. Areas like the Boundary Waters Canoe Area Wilderness and the Mississippi River headwaters corridor are not available for lease.

The State Executive Council must approve negotiated leases

Under Minnesota law, the State Executive Council – the Governor, Lieutenant Governor, Secretary of State, State Auditor, and Minnesota Attorney General – must approve all state metallic minerals leases, including negotiated leases, before DNR can issue them.

The State Executive Council’s next meeting is planned for May 25, 2022 and is open to the public. For more information, visit the State Executive Council’s website.

What are mineral leases?

A state mineral lease does not mean that the holder of the lease has the right to start a mining operation. A state metallic mineral lease grants the lessee authority to explore for a mineral deposit but with certain conditions. The lessee is under lease terms that have conditions to help protect the public and environment (see lease form). Any exploration on state land requires the explorer to send an Exploration Plan to the DNR for approval before any exploration on the ground can begin. If a lessee does discover a mineral deposit, environmental review and mining permits are mandatory before mining can begin.

Pending request

North Star Manganese request

This request is by North Star Manganese, Inc. (North Star) to lease 800 acres in Crow Wing County. North Star intends to explore for manganese. Because the negotiated lease request is to explore for manganiferous iron ore, North Star has applied for both taconite iron ore leases and nonferrous metallic minerals leases in the same area.

Maps and data

State nonferrous metallic mineral leasing web map

More information

Manganese is a metallic mineral often associated with iron ore. The manganese found in Crow Wing County is the 2nd largest known manganese deposit in the United States. Manganese is an essential alloy used to convert iron into steel, making steel less brittle and adding strength. Currently and historically, the demand for manganese is primarily driven by the steel making industry. More recently, manganese has become an increasingly important mineral for the manufacturing of green energy technologies, such as electric vehicle batteries and off-the-grid power systems.

The US Geological Survey included manganese on its list of 35 critical minerals. The US uses about 500,000 tons (1.1 billion pounds) of manganese per year and is currently 100% reliant on foreign sources for its supply.

Additional information about manganese:

US Geological Survey brochure

Minnesota DNR brochure

Public input

The public input period is now closed.

Thank you to everyone who took the time to submit input about North Star Manganese’s lease request. The DNR is in the process of reviewing the public input. We will be posting additional information about the lease request on this web page.