Thursday night, DNR Director Rebecca Humphries approved a surface lease agreement and a reclamation plan for the mining company.

MARQUETTE -- With the approval from the Department of Natural Resources, the state has given the green light to Kennecott Mineral's nickel-copper mine on the Yellow Dog Plains. 

After delaying its decision a month ago, Thursday night, DNR Director Rebecca Humphries approved a surface lease agreement and a reclamation plan for the mining company.

Now with three permits from the DEQ and two from the DNR, Kennecott hopes to begin construction on its Eagle Project mine in mid- to late-May.

"What we'll be doing over the next several months is preparing for construction, getting ready to break ground this spring when the weather breaks and we're finally able to do that,” Kennecott Project Manager Jon Cherry said.

But environmental organizations are hoping to use the court system to stop them.  Four groups are suing the DEQ for issuing mining, air and water quality permits.  And in their approval, the DNR says if any of the permits from the DEQ are halted, then the Kennecott project cannot move forward on state land.

"I fully expect the mine is not going to go forward.  I believe that we will win either in the contested case or the lawsuit," Dick Huey with Save the Wild U.P. said.

Cherry hopes the contested cases will be wrapped up by this Spring in order for construction to begin.  Kennecott is expecting production to begin in late 2009, early 2010.

The National Wildlife Federation's Michelle Halley told TV6 Friday afternoon that her organization and three others will challenge the DNR's decision in circuit court in Lansing.

Kennecott also needs a permit from the U.S. Environmental Protection Agency before they can go ahead with construction.  The EPA hopes they'll have a draft permit ready by this Spring.