Category Archives: Lake Superior

Are We Ever Going to Find Out How the Boundary Waters Reversal Really Went Down?

I can make a few additions to the Twin Metals timeline based on the latest release of records in my FOIA case against the Department of Interior, and I hope to get around to that soon. For those who would like to review these documents for themselves, the 16th supplemental production in Galdieri v. Dept. of Interior is online here; and all the public records concerning the Trump administration’s actions on Antofagasta’s mineral leases I’ve obtained through Freedom of Information Act requests may be found here.

This new set of records dates from the final months of 2017, when attorneys at the Department of the Interior are drafting, editing, and preparing to release the M-Opinion that would reverse the Obama administration’s actions and grant Chilean mining company Antofagasta, Plc “non-discretionary right” to a third renewal of its Twin Metals mineral leases. The emails included here span the period from then-Deputy Secretary David Bernhardt’s briefing on the matter in early October 2017 to the release of the M-Opinion in late December.

We get a little more detail here about the Bernhardt briefing — or, at least, evidence of continued sensitivity around it. For example, DOI has redacted the phrase that Karen Hawbecker used to describe one of the briefing documents. 

Why the redaction? Why should this phrase be subject to Exemption 5?  It refers to a document dated August 9, 2017, and its title is clearly indicated in the list of attachments: “Draft Lease Renewal Scenarios w[ith] comment.” How did Hawbecker characterize these scenarios?* Or could this be a case of sloppy redaction, where the reviewer did not notice the paper title in the list of attachments? If so, why should the reviewer not want to indicate that David Bernhardt was presented with a list of “lease renewal scenarios” prepared in August 2017?

Clearly, legal issues as well as political sensitivities were at play, and still are. In December 2017, the Solicitor’s office brings Ron Mulach, Office of the General Counsel at USDA, into the loop; OGC makes some changes to the letter the Bureau of Land Management will send to the Forest Service, notifying them of the new disposition. Other communications with attorneys at the Department of Justice, most likely regarding ongoing litigation, were not included in this release because they will “require consultation” with DOJ, according to the letter accompanying these records. A December 5 note about comments received on the draft from the Environmental and Natural Resources Division and a query from an ENRD attorney asking when the new M-Opinion will be issued are among the traces of those communications.

These documents also heighten the impression that there might have been some tension between political appointees and career attorneys at DOI in that first year of the Trump administration. Duplicates of some previously released emails show Gary Lawkowski, the political appointee who was then serving as Counselor to fellow Koch alumnus Daniel Jorjani, running some kind of independent operation within DOI. Lawkowski asks to see the mineral leases in November. He then drafted, or announced that he was drafting, his own version of the M-Opinion, which appears to have created confusion. As we know, he also floated the idea that the new M-Opinion should be positioned as a critical minerals play. While Lawkowski is pushing that industry-friendly line, Richard McNeer, who has been with the Solicitor’s Office since 1998, suggests including some talking points about how the public can make its views known to the Bureau of Land Management and the Forest Service.

Overall, then, this latest release contributes to the impression that the Boundary Waters reversal was a political project from the get-go. We still don’t know enough about the forces behind that project or about the ways it connected with other schemes run behind the facade of government during the last administration. I remain convinced there is a larger, untold story here, but I am less confident than I was a few months ago that the current administration is going to pull back the curtain or investigate how this all went down.

Read more about the Boundary Waters reversal here

*Update, 23 June 2021: It turns out we know exactly how this email read before it was redacted this time around.

And among the documents I’ve obtained is a fully redacted copy of the scenarios paper. It’s entitled “Twin Metals Potential Scenarios for Lease Renewal.” The title almost suggests that Twin Metals (or, more likely, Antofagasta’s WilmerHale lobbyists) provided the scenarios or developed them with Karen Hawbecker.

Perhaps the “comments” included were Hawbecker’s comments on scenarios created by lobbyists or with them? It’s worth noting that these scenarios emerge in the workflow at the Solicitor’s office just a couple of weeks after a July 25, 2017 meeting with Antofagasta, as the timeline shows. Did Antofagasta executives and their lobbyists arrive with these scenarios in hand? Were the scenarios the subject of the meeting?

In any case, Karen Hawbecker worked on the scenarios and forwarded them as separate documents, as scenarios 1, 2A, 2B, and 3, on August 6 and 7 2017 to Jack Haugrud, correspondence shows. The scenarios were then combined into the scenarios paper. Haugrud offers his opinion (“Karen, I”) in some back and forth with Hawbecker on August 7, 2017 that is also redacted.

So the latest redaction only served to direct my attention to these documents and raise the question why there should be sensitivity around them now. It would be troubling if attorneys at Interior were now trying to cover their tracks after following Antofagasta’s lead during the Trump era.

A BLM Map of Critical Minerals Near the Boundary Waters

The latest release of Boundary Waters documents arrived today, a 14th supplemental production in response to my FOIA lawsuit v. the Department of the Interior. I’ve put them online here.

Two things caught my attention right away: first, an inventory of documents the Solicitor’s office at the Department of the Interior put together, apparently in connection with the Voyageur litigation. A short Twitter thread calls out some items of interest.

Also among the records I received today: a Bureau of Land Management map showing prospecting permits and preference rights leases in Superior National Forest.

There are already a significant number of active leases and many more in the application stage that could eventually come online.

The purple plume of inferred and hypothetical reserves of critical minerals is especially noteworthy here.

We know from other documents I obtained that political appointees in the Solicitor’s office intended to position Antofagasta’s mine as a source of critical minerals; and after the Trump administration published a new list of critical minerals in 2017, Antofagasta itself even flirted briefly (in its 2017 Annual Report) with the notion that Twin Metals had significant cobalt reserves.

The Biden administration is currently reviewing the actions the Trump administration took on Twin Metals and — maybe just as importantly — they are undertaking a review of the critical and strategic minerals supply chain. If it were to be fully developed, that purple plume of hypotheticals and inferences could become a real-world industrial corridor.

Update, 12 May 2021: According to a May 10 Settlement Agreement in Center for Biological Diversity et al. v. Mitchell Leverette et al. (a case in the US District Court of the District of Columbia), the Bureau of Land Management will review its May 1, 2020 decision authorizing the extension of 13 of the prospecting permits indicated on this map. The renewals were made without an Environmental Assessment under NEPA or an effects determination under the Endangered Species Act. These thirteen prospecting permits are for all intents and purposes suspended until BLM completes its review; Antofagasta agrees not to engage in any ground disturbing activities. Antofagasta’s two mineral leases are also under review at Interior and USDA, and we can expect some news on that front in the June 22 filing in Wilderness Society v. Bernhardt.

A Return to Science and a Push for Responsible Mining — Whatever That Means

New Boundary Waters documents arrived yesterday. I posted a short thread on Twitter as I reviewed them.

These records traverse familiar ground. Most date from January, 2018, when attorneys at Interior were preparing letters notifying the Forest Service and Twin Metals that the Solicitor’s Office had reversed the Obama administration.

For Twin Metals, this would mean that the Department of Interior had rescinded its rejection of their application for lease renewal. Not a green light — that would come more than a year later, in 2019 — but an encouraging sign of new and friendly disposition. For the Forest Service, the reversal would send an early signal that the two-year mineral withdrawal study would either have to favor renewal of Antofagasta’s leases (unlikely), or it would have to be cancelled if it were going to stand in the way of renewal. The issue raised questions about compliance with NEPA, as one heavily redacted exchange suggests:

It would be helpful to know more about how these attorneys saw the problem with NEPA at this time, especially when evaluating the action then-USDA Secretary Sonny Perdue in September of that same year, when under political pressure he abruptly cancelled the planned study.

The document trail invariably takes us back to that critical decision. It deserves careful and comprehensive review. There was some movement in this direction yesterday, when Senator Tina Smith wrote to Perdue’s successor at USDA, Tom Vilsack, and Secretary of the Interior Deb Haaland to ask that the BLM and Forest Service to start a new mineral withdrawal and segregation process and resume the study Sonny Perdue interrupted.

Smith’s letter calls for a return to science but recommends a more limited review than the situation warrants. She wants the agencies to determine whether copper and nickel can be “safely” mined in this area, and she also wants to present herself as a champion of Minnesota mining. It’s a move she seems to have learned from Amy Klobuchar.

Be that as it may, Smith offers Vilsack and Haaland one way forward over the next few months, during the court-ordered 90-day stay in Wilderness Society v. Bernhardt.

We must protect our precious wilderness. At the same time, we must pursue opportunities for both recycling and responsible mining of important mineral resources in the United States. If you believe—as I do— that the United States should lead the way in creating a clean energy future, then we must support public policy which allows for responsibly mining the minerals that this future requires. It is irresponsible and unethical to outsource exploitive [sic] labor practices and environmental degradation to other places while we reap the benefits. However, copper-nickel mining is not right for all places. There are some places too sensitive to mine. This is why we the [sic] mineral segregation and withdrawal study is so essential.

The letter simultaneously recommends precautions for the Rainy River Watershed and “responsible mining” to build “a clean energy future.” Those two things aren’t necessarily incompatible, but it’s unclear how this statement translates to coherent rule-or decision-making. It’s also the same line on mining that Secretary of Energy Jennifer Granholm has taken in recent public statements. How will the new administration determine what responsible mining for the clean energy future looks like? That is going to take some difficult conversations, but it’s not an issue Granholm, Vilsack, and Haaland can or should put off for very long.

Secretary of Agriculture Tom Vilsack Should Promptly Review the Trump Administration’s Decisions around Mining in Superior National Forest

The 12th supplemental production of Boundary Waters documents in response to my FOIA lawsuit is now up on documentcloud. This Twitter thread calls out some highlights:

What’s most remarkable is just how consistent this release is with previous releases. The story remains the same: the Trump administration’s decisions around mining in Superior National Forest, on the edge of the Boundary Waters, were heavily influenced by a lobbying blitz, interference with regulatory review, and a coordinated, high-pressure campaign to cancel a planned scientific study.

This latest release offers some new details and color around the decision to reinstate Antofagasta’s mineral leases, as attorneys at Interior work on the official reinstatement letter and the news release that will become part of the public record. Most of the editorial decisions they take are heavily redacted; but the decision to opt for an “if-asked” statement over an official press release is exactly the strategy taken with the initial reversal or M-Opinion in December of 2017. Under the subject heading “Twin Metals Acquired vs. Public Domain Lands,” there is more discussion about the map drawn by mining engineer Timothy Howell, and how to reconcile its boundaries with Antofagasta’s Preference Right Lease Applications. And those PRLAs are also the subject of yet another meeting at Interior in March of 2018 with a gang of attorneys from WilmerHale and Twin Metals. Their objective is to press Interior on Antofagasta’s Preference Right Lease Applications and fix the scope and schedule for environmental review, prescribing the “regulatory scheme” officials at Interior should follow. As I noted in my Twitter thread, Chris Knopf and I called out a strikingly similar effort in regard to these PRLAs at another March 2018 meeting.

The story these records (and all the records I’ve received) tell inevitably arrives at then-Secretary of Agriculture Sonny Perdue’s decision to cancel the mineral withdrawal study in Superior National Forest. I’ve written about this critical decision before (here, here, and most recently, here). It was the product of a coordinated pressure campaign by WilmerHale lobbyists, top executives at Antofagasta, the White House, Republican legislators, and the Congressional Western Caucus.

From this release, we learn a little more about that decision.  In the Spring of 2018, for example, attorneys at Interior still assumed that Perdue would allow the mineral withdrawal study to proceed. In fact, in April of 2018, Secretary Ryan Zinke was prepared to reassure Representative Betty McCollum that the scientific study would help satisfy NEPA and protect Minnesota taxpayers from environmental and economic disaster. Perdue’s decision would break that promise in order to satisfy President Trump.

So these records from the Department of Interior appear to shed light on corruption at the USDA. It’s clear that newly confirmed USDA Secretary Vilsack should promptly review Perdue’s decision, publish an unredacted version of scientific findings to date, and open an ethics investigation into cancellation of the proposed mineral withdrawal. It’s time to repair the damage Perdue did, return the agency to science, and restore the integrity of USDA.

A Pressure Campaign: New FOIA Releases And A New Filing in Wilderness Society v. Bernhardt

Well past due, but yesterday the 11th supplemental production of Boundary Waters documents in response to my FOIA lawsuit arrived. You can find them here. All the Boundary Waters records I’ve received to date — now approaching about 10,000 pages — are here.

This release includes more records from Briana Collier, an attorney in the Division of Mineral Resources at the Department of Interior. The records show Collier and colleagues in summer of 2018 conferring over litigation around the decision to reinstate Twin Metals’ mineral leases near the Boundary Waters; other email threads show lawyers for Twin Metals at WilmerHale communicating with BLM attorneys about their upcoming motion to intervene and some discussion about whether Minnesota or DC would be the better venue. Pedestrian fare, maybe, but the impression is, once again, of WilmerHale and attorneys at BLM working in tandem to protect and advance the financial interests of Chilean mining giant, Antofagasta, Plc.

Another exchange relating to Twin Metals prospecting permits shows Dean Gettinger, a District Manager at the Northeastern States District of the BLM, trying to “get things moving.” The Forest Service is under pressure to make a determination on the Twin Metals prospecting permits; and this looks like yet another instance where the mining company is driving the calendar of agency review. (That was the subject of an OpEd I published this summer with Chris Knopf.)

The pressure is on: in May, 2018, the mining company even contests whether its Preference Right Lease Applications (PRLAs) fall within the boundaries of the proposed mineral withdrawal area.

These are the same PRLAs that were under discussion at a March 6, 2018 meeting where Twin Metals asked for a Categorical Exclusion — essentially no environmental review at all — but said it would settle for an Environmental Awareness review (which is exactly what it got). We don’t know whether Howell determined that they fell within the proposed mineral withdrawal zone, because his response to this email is almost entirely redacted. He apologizes for his delayed response, then continues: “Technically there” and the rest is redacted under deliberative process privilege. It is unclear why a cut and dry matter like this — the question whether the leases fall within the boundaries of the map Howell drew — merits this kind of protection.

These are not just isolated instances of the mining company raising questions about the status of its applications or expressing impatience because time is money. A loosely coordinated, well-funded, extensive lobbying and pressure campaign was launched the minute the new administration took office. Just this week, in fact, a new filing in Wilderness Society v. Bernhardt gave us new details about how extensive this campaign was, with Representatives Tom Emmer, Pete Stauber, Rick Nolan, and Paul Gosar running interference for the mining company. I put together a Twitter thread about it:

The prime target of this pressure campaign was none other than Secretary of Agriculture Sonny Perdue, who alone had the power to cancel the proposed mineral withdrawal. Emmer was trying to arrange a meeting between Perdue and the CEO of Antofagasta as early as July of 2017.

We don’t know when they first met, but Perdue and Ivan Arriagada would meet in May of 2018, just around the time those PRLAs and the borders of the mineral withdrawal map were under discussion. One month later, Trump prematurely on purpose blurted out in Duluth that the mineral withdrawal was on track to be cancelled. “‘It’s now up to [Agriculture] Secretary [Sonny] Perdue,'” Trump told local elected officials and mining advocates at a roundtable before his Duluth visit last week. ‘And I know he’s looking at it very strongly, and I think you’ll do very well.'” The quote is from a story by Dylan Brown in E&E News included in the collection of documents I just received.

Here is video of the moment. Andrea Zupancich, mayor of Babbitt, MN, tees it up:

Anyone who has been paying attention to the way Trump speaks understands that this was an instruction. “He doesn’t give you questions, he doesn’t give you orders, he speaks in a code,” his former attorney Michael Cohen told Congress. The code here is pretty easy to crack: look at it “very strongly” (not intently, not with a careful eye to the most responsible course, but from an attitude of strength) and make sure the people who want this withdrawal undone “do very well.”* Shortly after this, Perdue was warned that Gosar and others would be “pissed” if the Forest Service didn’t follow through.

Under pressure, it appears, Sonny Perdue folded.

*Postscript: The very next day, June 21, 2018, Sonny Perdue’s calendar shows a “Twin Metals Brief” just before the Secretary heads over to the White House for a cabinet meeting. It doesn’t take a whole lot of imagination to guess the content of that briefing.

Read more about the Boundary Waters reversal here.

Two Sets of Boundary Waters Documents: The Fallout from the Reversal

Two sets of Boundary Waters documents arrived yesterday afternoon.

The first set of documents is the tenth supplemental production — the December production — in response to my FOIA litigation. It includes more records from Briana Collier, 411 pages dating back to 2018 and mainly to do with the fallout from the Boundary Waters reversal: attorneys at Interior prepare for litigation over the reversal and start to gather materials to respond FOIA requests (including mine). I’ve put these materials online here.

The Collier correspondence shows attorneys at Interior searching for and reviewing letters and lease files from 1966 forward to prepare for litigation in the Voyageur case, for instance. In one exchange, the litigation specialist at BLM is apparently trying to reconcile the current lease form with the historical leases. Her questions have been redacted:

This same collection of correspondence also offers a glimpse of attorneys at Interior processing multiple FOIA requests at around the same time that Solicitor Daniel Jorjani was putting the Awareness Review Policy formally in place. There appears to have been some confusion about how to run the records search and how to include custodians who had taken on new assignments, in different departments. At one point, Collier apologizes for the “mess”:

The second set of records in this release includes 126 pages of documents previously withheld until the White House and the Office of the Secretary could review them. These records are now online here. They consist mostly of regular briefings by White House Liaison Lori Mashburn — another political appointee who came to Interior via the Heritage Foundation and the Trump 2016 campaign. These briefings present roundups of news coverage, summaries of schedules and announcements, tweets by Zinke that Mashburn deems “notable,” and the occasional flattering detail — e.g, Zinke’s appearance on the History Channel program Navy Seals: Kill or Capture.

Pages 107-126 of this 126 page document present Daniel Jorjani’s email correspondence and a briefing prepared for “the Duluth trip” (Trump’s June 2018 trip to Duluth, which I wrote about here) by Mitch Leverette, Acting Eastern States Director. The part of Leverette’s memo dealing with “Federal permits, leases, and extension requests” has been fully redacted. The issue was still very much in the works:


One takeaway from these documents is that the Boundary Waters reversal — the Jorjani legal memo of December 2017 — ruled in Antofagasta’s favor but unsettled the regulatory picture for much of 2018. “Questions regarding how to interpret the original lease terms have also persisted,” notes Leverette in his memorandum; and Interior was dealing with other questions as well. An exchange in the December production shows Kevin Baker, Vice President for Legal Affairs at Twin Metals, trying to sort out some “confusion based on the recent approvals” from the Bureau of Land Management and US Forest Service.

Subsequent actions by Interior and USDA were intended to give Baker and executives at Twin Metals and Antofagasta the results they sought and the clarity they needed to proceed. Now, with the arrival of a new administration only weeks away, things may seem little less settled.

Read more about the Boundary Waters reversal here.

Another Political Appointee’s Calendar Among New Boundary Waters Documents

In response to my Boundary Waters FOIA case, the US Department of the Interior today released another 446 pages. I put them online here.

This release includes the 2017 calendar of Timothy Williams, a political operative who came to the Department of Interior via the Koch-backed Americans for Prosperity and Trump’s 2016 campaign in Nevada. “Although Williams doesn’t appear to have experience working on issues that fall within the purview of Interior,” notes the watchdog Department of Influence site, “the department’s press release announcing his hire advertises that Williams is an ‘avid sportsman and accomplished hunter and fisherman.'” Williams is now Principal Deputy Director at the Office of Intergovernmental and External Affairs at the Interior Department. Last year he was the subject of an ethics complaint filed by the Campaign Legal Center.

According to an email accompanying it, Williams’ calendar was scheduled to be released and posted (presumably to the Department’s calendar site) on August 31, 2018, but I don’t see it there and can’t find it elsewhere online. Maybe its release was held up for some reason. In any case it’s new to me, and even at first glance, Williams calendar will allow me to make some additions to the Twin Metals timeline. For example, a June 22, 2017 meeting Williams had with Chad Horrell of the DCI Group (on behalf of Sportsmen for the Boundary Waters) and a “quick huddle” on December 21, 2017 to discuss the Solicitor’s reversal of the M-Opinion along with the Migratory Bird Treaty Act and the signing of a Secretarial Order.

Taking a broader view, what I said the other day about the last release can also be said of this one: this looks more like a document dump than a meaningful and organized response to my request. The release includes another multiple page spread sheet of FOIA requests sent out for review by Justin Wilkinson from the Secretary’s FOIA Office under the FOIA Awareness policy. The only noteworthy thing about this item might be that it demonstrates, once again, that the claims about custody and control advanced by Interior in the initial stages of this case are claims of convenience, and the firewall between the Office of the Secretary and the Solicitor’s Office is a lot more permeable than they pretended.

The Office of the Solicitor is withholding 16 pages in full. It’s possible from the emails included here to guess what some of those documents are: for example, a “proposed agenda” attached to an August 28, 2018 email from an attorney at the DOJ’s Environment and Natural Resources Division is probably among the withheld documents. But I can’t be sure, of course, because the letter from the FOIA office specifies only that some documents are being withheld, not which documents. I’m also unsure whether these documents or other redactions and documents withheld under Exemption 5 will be covered by the Supreme Court’s pending decision in US Fish and Wildlife v. Sierra Club; and from what I am reading, it’s likely that decision will protect deliberative process at the cost of greater transparency.

Read more about the Boundary Waters reversal here

Documents Delayed and Permits Accelerated: A Critical Minerals Play?

Is the Trump administration preparing to invoke emergency powers in order to accelerate permitting for Antofagasta’s sulfide mining project near the Boundary Waters? Listen to what Pete Stauber and Mike Pence were saying in Hibbing the other day.

It has been over two months — 78 days, in fact — since the Department of Interior has released any documents in response to my FOIA lawsuit, despite a February 7, 2020 court order requiring regular monthly releases of 750 pages. While I consider options to get the process back on track, I am also trying to figure out what the delay might mean.

An October 6, 2020 Joint Status Report set out some reasons for the delay.

It’s hard to know what to make of these representations. Let’s start with the September releases, since the reviews mentioned in the connection with the October releases sound a little more standard (and are for that reason even more opaque).

In a letter dated October 31, 2019, I was told by Department of Interior Counsel that all requests for agency records related to Secretary Zinke “must” go through the Secretary’s office, so the Secretary’s records were not, and would not ever be, included in searches the Office of the Solicitor. How, then, does the Office of the Secretary claim “equities” in documents from the Office of the Solicitor? It looks as if the firewall they tried to erect between the two offices didn’t hold up or was nothing more than a temporary blind. The back and forth we had over Tax Analysts v. Department of Justice, a landmark case regarding “custody” and “control” of responsive records, probably needs revisiting.

That leaves the six pages being sent to the White House for “consultation.” What’s in those six pages, and who is undertaking the review? One guess is that they concern communications between Daniel Jorjani and Michael Catanzaro, who until April 2018 was Special Assistant to the President for Domestic Energy and Environmental Policy. Catanzaro met regularly with then-Deputy Secretary of the Interior David Bernhardt, and he appears to have acted as a sort of White House liaison on the Twin Metals matter.

A front page story in the June 26, 2019 New York Times has Catanzaro meeting with Antofagasta executives as early as May of 2017, and the timeline shows him meeting with Daniel Jorjani about the “Minnesota project” in August of that same year. Stephen Vaden, a political appointee at USDA, also attended that meeting and Vaden appears to have stayed in the Minnesota loop to keep Secretary of Agriculture Sonny Perdue apprised of legal developments. (For the next year or so, Perdue would bide his time, lie and equivocate, before abruptly canceling a planned two-year scientific study to determine whether federal lands bordering the Boundary Waters should be withdrawn from mineral development.)

Catanzaro has returned to lobbying for oil, gas, and mining clients, and it seems a little far-fetched to think the hold up might be due to White House sensitivities around Vaden, whose nomination to the United States Court of International Trade is now awaiting a vote in the Senate. Why, then, the consultation at the White House?

Consider that this delay might not less about protecting persons, or political appointees, and more about protecting a position that the White House, the Solicitor’s Office, the Secretary of the Interior, USDA and Antofagasta Plc have jointly developed — seemingly in tandem with their efforts to renew Antofagasta’s leases in northern Minnesota. The position is simply that Twin Metals will be a source of critical minerals.

Only two days after Daniel Jorjani met with Catanzaro and Vaden in August of 2017, the Department of Interior hosted the CEO Critical Minerals Roundtable; and though Antofagasta was not among the mining companies represented on that occasion, the company changed the description of its Twin Metals project to include cobalt — on the list of “critical minerals” — for its 2017 Annual Report. (The 2015 and 2016 Annual Reports make no mention of cobalt.) Immediately after Interior published its list of critical minerals, Gary Lawkowski, who is now Deputy Assistant Secretary for Land and Minerals Management and was then Daniel Jorjani’s Deputy, recommended a public relations strategy that positioned Twin Metals as a critical minerals play. “One thing you all may want to note — the Forest Service has indicated that they believe there are potentially cobalt and platinum deposits underneath Superior National Forest.” And, as I mentioned in the FOIA webinar I gave in July, Interior has now started to redact Lawkowski’s use of the phrase “critical minerals” in Twin Metals document releases, which indicates some new sensitivity on the point.

This might help explain the legal reviews holding up the October production as well. But the real issue here doesn’t have to do with the documents I’m expecting. It has to do with how the White House, the Department of Interior, and other agencies are developing the critical minerals position on Twin Metals. We can get a sense of where things seem to be heading from the speech Representative Pete Stauber gave to warm up the rally crowd in Hibbing, Minnesota for Vice President Mike Pence just the other day:

Plaid jacket jingoism. But note especially the way Stauber deliberately conflates “copper-nickel mining” with “strategic metals mining,” and organizes the Twin Metals project under emergency powers the president arrogated to himself in the September 30 Executive Order on critical minerals. Pence softened things a bit when he elaborated on the theme, but he told the crowd that the Executive Order “cuts burdensome regulation and eliminates permitting delays.”

The argument Stauber and Pence were starting to make in Hibbing appears to be that the White House can invoke emergency powers in order to accelerate or even sidestep environmental review on behalf of Antofagasta, because Twin Metals is a source of critical minerals and therefore covered by Executive Order.

The Order asks the Secretary of Energy to identify “all such regulations that may warrant revision or reconsideration in order to expand and protect the domestic supply chain for minerals” and to propose changes within 90 days. That puts us at the end of December, and, if current polls hold, right near the end of Trump’s presidency. In the meantime, the order also authorizes the Secretary of the Interior and other agency heads to “use all available authorities to accelerate the issuance of permits and the completion of projects in connection with expanding and protecting the domestic supply chain for minerals.” If Trump loses Tuesday’s election, they’ll have just a couple of months to get this done.

Read more about the Boundary Waters reversal here.

New Citigroup CEO Has Strong Ties to Chile’s Luksic Group

Goodbye to all that? With Andronico Luksic Craig looking on, Jane Fraser makes her exit from the May 2019 press event marking the repayment of the Banco de Chile’s subordinated debt.

Jane Fraser, who was named last week to succeed Michael Corbat as CEO of Citigroup, has longstanding business ties to one of Chile’s most powerful business conglomerates, the Luksic Group.

Antofagasta Plc, the company with plans to mine copper and nickel on the edge of the Boundary Waters, is among the conglomerate’s principal holdings — which is why I thought it would be instructive to start looking at the Fraser-Luksic connection as Citigroup prepares for its leadership transition.

It’s unclear just how much exposure Fraser has had to the mining side of the sprawling Luksic business empire. Citibank’s dealings with the Luksic Group over the years appear to be primarily through Quiñenco SA, the financial holding company through which the group controls its investments. It is clear, however, that Fraser enjoys a fairly close business relationship with Andronico Luksic Craig.

Fraser’s relationship with Andronico Luksic Craig and the Luksic Group developed as she came up through Citigroup’s Latin American leadership ranks. After a four-year stint from 2009-2013 as CEO of Citi Private Bank, which serves the bank’s wealthiest customers, the Luksic family possibly among them, Fraser was CEO of Citigroup Latin America from 2015-2018. During that period, she also served as Vice-Chairman of the Board of Banco de Chile, co-chair with Andronico Luksic Craig.

The role came with the job. In 2007, Citigroup and Luksic-controlled Quiñenco SA established a partnership that gave Citi a 32.9 percent stake in LQ Inversiones Financieras, the Quiñenco subsidiary that has held a controlling stake in Banco de Chile since 2002. (This was, not coincidentally, the year Andronico Luksic Abaroa handed the reins to his sons Andronico and Guillermo.) The Luksic Group grew rapidly after its move into banking, growing in value from $1.9 billion to $15.6 billion over a ten year period, according to a 2017 London Mining Network report, and “profits were increasingly linked to financial capital and speculation.” Citi took part in that spectacular growth, and in 2010 increased its stake in LQIF to 50 percent.

The partnership with Citigroup also helped the bank through the final stages of its recovery from the financial crises of 1982-3, culminating in the repayment of the bank’s subordinated debt in May of 2019. A “dark chapter” of the Pinochet period had come to a close, thirty years after Pinochet fell from power. The event must have had special significance for Luksic, whose family had decamped to London after the 1973 military coup and only returned to Chilean investment circles with the onset of the financial crisis and recession of the 1980s. Settling the debt of the Banco de Chile must have felt like an act of historical redemption.

In the press conference organized for the occasion, Fraser appeared in the Paseo Ahumada side by side with Luksic and Mario Marcel, the president of Chile’s central bank.

Fraser is now set to become one of Wall Street’s most powerful bankers. Asked to comment on her promotion, Luksic was effusive in his praise, calling Fraser a “pioneering woman” and a “tremendous leader” who will make “an enormous contribution not only to Citigroup, but to the entire financial industry.”

It is still too early to say what, if anything, her move north might mean for Luksic’s business fortunes or the Chilean mining company’s North American ambitions.

An Appeal to the State Department

Earlier this morning I appealed the State Department’s denial of my request for expedited processing on two Freedom of Information Act requests made in the fall of 2018.

As I mentioned in last month’s webinar, even though FOIA specifies that “records shall be made promptly available,” many agencies have a backlog of requests and some requests are deliberately slow-walked.

The State Department does not expect to complete these two 2018 requests until 2022. No reasonable definition of “promptly” contemplates a delay of four years, and, as I argue in my appeal, recent Federal government action — the June 30 Notice of Intent to prepare an Environmental Impact Statement for the Twin Metals project — compels the release of these records. Why? Because in compliance with the National Environmental Policy Act, the Bureau of Land Management plans to take public comment and hold public meetings on Antofagasta’s Minnesota project. The public can’t participate in a meaningful way or make considered judgments when critical facts are withheld.

I posted a copy of my appeal on Twitter.

The appeal’s argument about NEPA, which provides for meaningful public consultation, brings me back to a point I tried to stress in the webinar: what’s at stake here is not only a mining project or economic development in northern Minnesota or the fate of the Boundary Waters, though all of those things are matters of great concern, but also questions of meaningful consultation, citizen participation, and good government.

Both NEPA and the Freedom of Information Act are, or at least could be, conducive to responsible democratic governance. They are designed to make government conform to citizen demand, or at least make government inform, include, and answer to the public.

Charles Tilly puts it neatly: “a regime is democratic to the degree that political relations between the state and its citizens feature broad, equal, protected, mutually binding consultation.” If that is the kind of government we want to have, then those are the political relations we need to create, support, and insist upon. The state isn’t going to do that for us, and the current regime appears to be doing everything it can to frustrate and undermine those relations.

Update 28 Sept 2020. The Office of Information Programs and Services denied this appeal on September 24, saying I did not show a compelling need, and rejecting my argument that due to Federal government action my request meets the threshold of 22 C.F.R. 171.11(f)(2).