taxes

As the Back Forty Mine continues to develop, transparency and effective communication become more important. We recently published a newsletter as just one part of our effort to improve communication with the community now and in the future. It is also a suggestion we received from community members. Here’s a snapshot of where the project is today:
• The project is nearing the final stages of permitting. We look forward to regulatory approval of the wetlands permit by mid-2018.
• We’ve invested more than $90 million into the project and plan to spend more than $260 million to construct the mine.
• Drilling program results provide opportunity for future expansion.

BEYOND MINING
We want to help improve the overall economic strength of the community and the economic quality of life for all residents resulting from our mining activities. Typically, the additional tax revenues generated by a mine provide significant benefits.

In a typical year, we’ll pay roughly $20 million in taxes to federal, state, and local governments. About $5 million of those tax dollars will be distributed to Lake Township as a result of Michigan’s Nonferrous Metallic Minerals Extraction Severance Tax. The Severance Tax will disperse just like general ad valorem property taxes. What does this mean for residents? It means that there will be more money for infrastructure such as broadband and road upgrades, or new technology in schools, a local fire hall, or recreational trails.

Below you’ll find an example of the allocation of Severance Taxes to the local community during an average year.

* Calculated using metal prices of $1.20/lb zinc and $1,300/oz gold. These prices are subject to change depending on market conditions.

PROJECT TIMELINE
For more than 15 years we’ve been developing the Back Forty Mine. Recently, we cleared a permit hurdle and we expect to have all permits required to construct and operate the mine by mid-2018. Now, our team is focusing on engineering and planning for construction with the ultimate destination in mind – closure.

As members of the community, we pledge to respect all people and not to harm the environment in Menominee County. We’ve used various communication techniques over the years to capture your feedback and improve the way we do business.

COMMUNITY RESPONSE TOOLS
Recently, we added a new set of Community Response tools to create even more opportunity for you to contact us. The tools will enhance and streamline the way community members notify us of feedback, concerns, and grievances about our operation. We are leveraging technology to ensure more timely responses to the community, and complement traditional communication and increase access to the Back Forty Team.

Below you’ll find two new ways to reach us. Both the phone number and online form allow you to contact us 24/7 at your convenience.

• Community Response Line (906) 451-4192
• Online Response Form backfortymine.com/contactus

Of course, you’re welcome to stop by our office during regular business hours.

If you have any questions or concerns about the information in this newsletter or any other topic, please let us know. We look forward to hearing from you.