“Minnesota’s Iron Range is taking another step into the future with the first facility in North America to include iron ore mining and steelmaking on a single site,” Iron Range Resources Commissioner Sandy Layman said. “With all of its permits now in hand, Minnesota Steel can move quickly to finalize its financing and begin construction.”

Minnesota Steel Industries, LLC (Minnesota Steel) proposes to construct an approximately $1.6 billion mine mouth electric arc furnace steel mill, capable of producing 2.5 million metric tons of steel per year. The project is to be located near Nashwauk, at the site of the former Butler Taconite Mining Company operations. The proposed project will vertically integrate all iron mining and manufacturing processes to produce a finished steel product on one site.

“This is great news for all of Minnesota,” said Dan McElroy, commissioner of the Department of Employment and Economic Development (DEED). “This will be the first mine to metal complex in North America for steel. I want to congratulate the leadership of Minnesota Steel and Itasca County on this exciting development.”

Iron Range Resources provided a $5 million loan to Minnesota Steel in early 2005 to help fund initial development of the project. The State of Minnesota provided further assistance by providing $12 million from the 2006 bonding bill to Itasca County for infrastructure and an $11 million supplemental budget appropriation through DEED to the Minnesota Minerals 21st Century Fund for a grant to Itasca County for infrastructure.

Representative David Dill (D-6A), Chair of the Iron Range Resources Board, enthusiastically supports the project. “I’m happy that this project continues to move forward,” he stated. “It’s a significant opportunity for Minnesota which includes value-adding Minnesota natural resources. It gives the state the opportunity to make finished products from steel. The Board, working in conjunction with the Administration, continues to work to make this project a reality.”

Once completed, Minnesota Steel will include an open pit taconite mine capable of producing more than 13 million metric tons of ore per year, a crusher, concentrator, pelletizer, DRI facility and an electric arc furnace producing 2.5 metric tons of steel slab for direct shipment or for onsite rolling to produce hot rolled coil.

Minnesota Steel expects construction to occur over a 6-year timeline. The resumption of mining and the construction of the first line will include all infrastructure and plant equipment required to produce 60 percent of the planned capacity. The construction of the first line will take approximately 24 to 30 months and will include all of the crusher and pellet plant, most of the concentrator equipment, one of the two DRI modules, and half of the melt shop capacity. Construction on Line 2 will continue following the construction of the first line and will include the remaining capacity of the concentrator, the second DRI module, the second steel mill line, and the rolling mill.

In addition to 2,000 construction jobs, Minnesota Steel will create 700 full-time jobs and 2,100 spin-off jobs, generating over $600 million dollars annually of economic impact. It is expected to contribute $18 million a year to the State and local governments in taxes and royalties.