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Public commenter raises royalty dispute as North Star Manganese reports $1.39 billion PEA to Emily council
Summary
A public forum speaker presented historical documents alleging North Star Manganese/Crow Wing Power contracts conflict with a Carlton Group royalty agreement; later in the meeting NSM reported a preliminary economic assessment claiming an after‑tax NPV of $1.39 billion and outlined next steps toward feasibility and permitting.
Steve Carlton, who told the council his family discovered and managed interests in the Emily manganese deposit for decades, presented a packet of documents and told the Emily City Council he believes recent NSM/Crow Wing Power arrangements conflict with a 2008 Carlton Group royalty agreement that, he said, requires written Carlton Group approval for certain sales and preserves Carlton monitoring rights.
"The royalty agreement gave the Carlton Group rights to monitor CWP manganese deposit activities, including reviewing financials, business plans, core samples, plant visits, and management of operations," Carlton told the council and said the Carlton Group has used those rights to challenge sales and other transfers in the past. Carlton also said the deposit was found to be richer in 2012 and estimated in his materials that the manganese in the deposit, if brought to the surface and processed, could be worth about $6.5 billion. He urged the council to protect residents and limit expansion of any proposed mine footprint until a safe extraction plan is developed.
Later in the meeting Rick Sandri, identified as a North Star Manganese representative, briefed the council on a preliminary economic assessment (PEA) for the Emily Manganese Project. Sandri reported the PEA's assumptions produce an after‑tax net present value of $1.39 billion (10% discount rate), an internal rate of return of 43.5%, and a projected payback period of 23 months, with a proposed 23‑year mining operation and 25‑year project life. Sandri said next steps include pre‑feasibility and feasibility work in 2026, consultation with local communities and tribes, permitting with Minnesota state regulators and federal agencies, continued technical visits and core sample analysis, and outreach to potential battery and EV manufacturers for offtake agreements.
The minutes record Carlton's allegation that the NSM/CWP contract "does not comply with the terms of the Carlton Group's royalty agreement," but they do not record a response from CWP or NSM addressing that specific legal claim during the public comment period. The minutes also show NSM will request time to present fuller study results to the City. The council did not take formal action on the royalty dispute during the meeting.
The matter raises both legal and planning considerations for the City: Carlton urged protection of Emily residents and CWP members, while NSM's presentation frames the project as economically attractive and moving toward permitting and technical evaluation. Council members did not vote on mining‑related approvals at this meeting; council directions recorded included allowing NSM to request a presentation and staff follow‑up as needed.
