BABBITT — The Minnesota Department of Natural Resources canceled one of the mineral leases held by Twin Metals Minnesota on Saturday, Sept. 12.
The DNR says the lease, located east of Babbitt near the Dunka mine pit, was canceled following nearly a year of review. At that time, the agency determined the company "has not met the performance and production requirements of the lease."
The DNR did not respond to a request for clarification.
Predecessors of Twin Metals have held the lease since the 1990s. Prior to the cancellation, the lease was held by Twin Metals subsidiary Franconia Minerals.
In a statement of its own, Twin Metals said it was "disappointed" in the decision.
"Twin Metals has invested more than 16 years in extensive exploration, geological, environmental, hydrological and engineering work, doing so in strict accordance with all applicable state and federal regulations," the statement said.
The DNR said the land affected by the mineral lease is "not located within the area that Twin Metals has previously sought to mine."
Last month, an executive action by Gov. Tim Walz halted Twin Metals' efforts to establish a copper-nickel mine in the Rainy River Headwaters Watershed. The executive action banned nonferrous mining in the watershed over concerns about possible pollution to the nearby Boundary Waters Canoe Area Wilderness.
In a Facebook post Saturday, advocacy group Friends of the Boundary Waters called the decision "an important first step" in protecting the region, noting that it may set a precedent for canceling the remaining leases.
According to the DNR, Franconia Minerals held 17 leases in Lake and St. Louis counties at the start of 2026.
Congressman Pete Stauber stated in a Facebook post Sunday that the decision was "another blow to Northern Minnesota."
"They [the Walz-Flanagan administration] clearly don’t care about good-paying union jobs or the tens of millions in funding that would have gone to every school district in Minnesota," he stated.
The 8th District Republican led several Minnesota leaders in opposition to the mining executive order last month.
The canceled lease will officially end on Nov. 10.
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