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Minnesota Duluth Complex and Iron Range

U.S. Steel to idle some production at Minntac, affecting hundreds of workers – by John Myers (Duluth News Tribune – March 31, 2015)

http://www.duluthnewstribune.com/

The string of bad economic news on the Iron Range compounded Tuesday when U.S. Steel announced that it will dramatically slow production at its Minntac taconite facility in Mountain Iron starting June 1.

Local union officials said the move will put 700 Steelworkers off the job, nearly half of the nearly 1,500 people who work at Minnesota’s largest taconite mine and processing plant.

The Pittsburgh-based steel giant said the move was forced by an oversupply of iron ore due to continued low demand for its American-made steel — a problem made critical in recent weeks by the ongoing flood of foreign steel made with cheap foreign iron ore.

“Global influences in the market, including a high level of imports, unfairly traded products and reduced steel prices, continue to have an impact,” the company said in a brief statement Tuesday.

State Rep. Jason Metsa, DFL-Virginia, said he’s been told that three of the plant’s five production lines will be shut down in an effort to reduce a backlog of 3.2 million tons of taconite. Union officials said they had not yet been told which employees will be laid off.

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Dayton: ‘Outdated’ clean water standard could doom mining industry – by Tom Scheck (Minnesota Public Radio – March 24, 2015)

http://www.mprnews.org/

Gov. Mark Dayton is siding with U.S. Steel in a battle over water pollution standards for the company’s taconite facility in Mountain Iron. In an interview with MPR News, Dayton said the existing sulfate standard aimed at protecting wild rice is out of date, and pushing it could be catastrophic for northeastern Minnesota.

As the Minnesota Pollution Control Agency prepares to release new environmental standards, U.S. Steel is lobbying the Legislature to delay the implementation of a clean water standard aimed at protecting water where wild rice grows.

The existing state standard prevents companies from discharging more than 10 milligrams of sulfate per liter of water. But company lobbyists and Iron Range legislators say the standard is too low. With his latest comments, his strongest to date on the long-running debate, Dayton is joining that group.

“Some people will say, ‘you’re going to abandon the standard,'” Dayton said. “But if the standard is obsolete and it’s not validated by current science and information, then to stick with it and close down an industry isn’t really well advised.”

Dayton said the sulfate standard is outdated and has rarely been enforced since it was first established in 1973. U.S. Steel’s Minntac plant was facing the new standard as it renewed a decades-old permit — something U.S. Steel said would cost hundreds of millions of dollars in upgrades.

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Cliffs to return to core business – by John Pepin (Mining Journal – February 19, 2015)

http://www.miningjournal.net/

MARQUETTE – The top executive for Cliffs Natural Resources said Wednesday the mining company continues to pursue a “rock solid” revitalization strategy of shutting down and selling off its diverse assets elsewhere, reducing debt, and focusing on iron ore production in the Upper Great Lakes region.

“We are back to basics,” said Lourenco Goncalves, Cliffs’ chairman, president and chief executive officer. “We are back to our business, to our real business, the business that made Cliffs a big company, the business that made Cliffs a powerhouse in the United States and abroad and that is producing iron ore in Michigan and Minnesota and that’s it. That’s our business.”

From coal to chromite, from Australia to Canada and the southeastern United States, under previous board management, Cliffs diversified and expanded.

“Everything else was done through a strategy that was not the best one for the company – that was not the best one for the community that the company serves,” he said. “Lots of money was spent and wasted in bad investments we’re correcting all that.”

Goncalves said Cliffs’ now realizes those “mistakes of the past.”

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Lives Transformed: Education and the Iron Range – by Pamela A. Brunfelt (Home Town Focus – February 20, 2015)

http://www.hometownfocus.us/

Dear Readers,

Earlier this year Pam Brunfelt, distinguished historian, Vermilion Community College instructor and HTF contributor made available, through the Iron Range Resources and Rehabilitation Board, four history articles that she researched and wrote.

One of those pieces, “The Arsenal of Democracy: Minnesota’s Iron Ranges in WWII,” was published in the January 2, 2015, edition of Hometown Focus. This week we’re sharing “Lives Transformed: Education and the Iron Range.”

These, and the remaining two pieces to be shared at a later date (“At the Center of Life: Women on the Iron Range” and “Industrialization and the Iron Range”), collectively comprise the IRRRB project, “Mining Our History.”

All four of Brunfelt’s history pieces can be accessed online at: http://mn.gov/irrrb/DataCenter/History/walk-through-our-history.jsp – Cindy Kujala – HTF Staff Writer

Mining changed the landscape of the Iron Ranges, and mining taxes created one of the finest education systems in the United States. Education served three purposes. First, to provide alternatives to employment in the mines; second, to transform a polyglot immigrant culture into a new Iron Range identity based on American values; and third, to provide a path to citizenship for thousands of immigrants in the first decades of the twentieth century.

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Cliffs CEO: Foreign steel imports are threat to Minnesota mining – by John Myers (Duluth News Tribune – February 16, 2015)

http://www.duluthnewstribune.com/

VIRGINIA — The biggest threat to Minnesota’s taconite industry isn’t the global glut of iron ore mined in other nations but rather the vast amount of foreign steel that’s being imported to build Amercian projects.

That was the warning Monday from Lourenco Goncalves, president and CEO of Cliffs Natural Resources, the largest taconite iron ore producer in the U.S.

Goncalves said no foreign iron ore producer can get their product to U.S. steel mills as efficiently as U.S. producers in Minnesota and Michigan. But the U.S. imported 23 percent of its finished steel in 2013, 28 percent in 2014 “and that number hit 33 percent in January,” Goncalves told Iron Range business and political leaders Monday.

“The biggest issue we have in this country is imports,” Goncalves said at the company’s annual mining breakfast to update the region on Cliffs’ problems and prospects at its three Minnesota operations.

Goncalves said America is experiencing a relatively booming economy — including automobile manufacturing and construction — but that too many of the new projects are being built with foreign steel that is made from iron ore from Australia or Brazil, not Minnesota.

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[Minnesota] Copper/nickel hearing passionate – by Julia Van Susteren (Mesabi Daily News – February 3, 2015)

http://www.virginiamn.com/

Iron Range nonferrous mining issue in St. Paul

ST. PAUL — Proposed copper/nickel/precious mining on the Iron Range, always controversial and stirring strong passions on both sides, once again visited the State Capitol on Tuesday.

Citizens and mining industry supporters all had their say at a Mining and Outdoor Recreation Policy Committee hearing in the Senate Office Building. The small meeting room was crowded wall-to-wall with attendees, including many anti-mining advocates, supporters of nonferrous projects, and even a few interested lawmakers.

Executive Director of MiningMinnesota Frank Ongaro opened the meeting by citing various economic and long-term environmental benefits mining contribute to the state, local communities and the world.

Representatives from PolyMet, which is in the environmental impact statement process in advance of permitting for its project at the former LTV Mining Co. site near Hoyt Lakes, and Twin Metals Minnesota, which is not as far along for their projects near Ely and Babbitt, further testified about the importance of their ventures.

Representatives of various citizens’ groups argued passionately against the proposed mining projects, citing loss of tourism interest, contamination of pristine environments, and loss of personal property.

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NEWS RELEASE: Antofagasta Investment Company Limited completes acquisition of Duluth

TORONTO, Jan. 21, 2015 /CNW/ – Duluth Metals Limited (“Duluth” or “Duluth Metals”) (TSX: DM) (TSX:DM.U) is pleased to announce that it has completed its previously announced proposed arrangement (the “Arrangement”) with Antofagasta Investment Company Limited (“Antofagasta”), a wholly-owned subsidiary of Antofagasta plc. Under the Arrangement, Antofagasta has acquired all of the outstanding common shares of Duluth (the “Duluth Shares”) (other than Duluth Shares held by Antofagasta and its affiliates) at a price of CDN$0.45 per Duluth Share in cash (the “Cash Consideration”).

The Duluth Shares are expected to be de-listed from the Toronto Stock Exchange as soon as practicable.

In order to receive the Cash Consideration in exchange for their Duluth Shares, registered shareholders must complete, sign, date and return the Letter of Transmittal that was mailed to each registered shareholder. The Letter of Transmittal is also available from Duluth’s depositary, Equity Financial Trust Company, by telephone at: (i) 1 (866) 393-4891 (North American Toll Free); or (ii) under Duluth’s issuer profile on SEDAR at www.sedar.com.

Shareholders whose Duluth Shares are registered in the name of a broker, investment dealer, bank, trust company, trustee or other intermediary or nominee should contact that intermediary or nominee for assistance in depositing their Duluth Shares and should follow the instructions of such intermediary or nominee in order to make their election and deposit their Duluth Shares.

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This Week in Range History: THE MESABI IRON COMPANY: TACONITE PIONEER – by Donald C. Wright (Home Town Focus – January 9, 2015)

 http://www.hometownfocus.us/ Northern Minnesota

This week we’re sharing a story written by Eveleth native Donald C. Wright about the Mesabi Iron Company, predecessor to Reserve Mining Company in Babbitt. Although the Mesabi Iron Company operated the plant in Babbitt for only two years (1922 – 1924), they were taconite pioneers who “proved that high grade iron ore could be produced for America’s steel industry from hard, tough Minnesota taconite.”

Wright’s story was originally published in the June 1984 edition of Range History: The Mesabi Perspective, a quarterly publication of the Iron Range Historical Society, and is reprinted here with their permission. All of the photos published with the story here are also courtesy of the Iron Range Historical Society.

Thank you Iron Range Historical Society for sharing your stories of our history. Cindy Kujala HTF Staff Writer

About the time the American Civil War was coming to a close in Wilmer McLean’s parlor in Appomattox, Virginia, Michigan’s bright copper boom was fading and miners began to cast interested glances at the new state of Minnesota. Minnesota’s North Shore had been opened to settlement by terms of the Treaty of LaPointe with the Chippewa in 1855 and prospectors already were drifting in to investigate rumors of gold, silver and copper.

One of the new arrivals was a German immigrant named Christian Wieland who, with his four brothers, hacked out a settlement on the shore of Lake Superior and called it Beaver Bay.

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Minnesota couple who canoed from Boundary Waters to nation’s capital ponder next adventures – by Steve Karnowski (The Associated Press/Winnipeg Free Press – January 5, 2015)

 http://www.winnipegfreepress.com/

MINNEAPOLIS – Two experienced adventurers who paddled, portaged and sailed 2,000 miles from northern Minnesota to Washington, D.C., say they plan to keep up the fight in the new year to protect the Boundary Waters Canoe Area Wilderness from copper-nickel mining.

Amy and Dave Freeman set out Aug. 24 from Ely. They canoed 180 miles through the BWCA, then portaged to Lake Superior. They strapped their canoe to a sailboat for the next 600 miles to Lake Huron, then switched back to the canoe for the final 1,300 miles, travelling mostly by rivers and canals across parts of Canada and the eastern states. They reached the Potomac waterfront in Washington on Dec. 2 — 101 days after they set out.

The Freemans wanted to call attention to the threat they say copper-nickel mining poses to the Boundary Waters and to mark the 50th anniversary of the federal Wilderness Act, which protects pristine areas such as the BWCA. Their next plan is a bike ride across Minnesota in 2015 hauling another canoe to press their message.

But it won’t be the same signature-covered “petition canoe” they paddled to Washington. They gave that to the U.S. Forest Service, the agency that oversees the BWCA. Dave Freeman said the bike tour, which is being organized by the Ely-based group Save The Boundary Waters, will last about six weeks and a large group of people will participate for a week or two at a time.

“I think it’s going to be a lot of fun. We’re going to try and hit as many of the college campuses in Minnesota as possible,” he said.

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Good environment, good jobs: We can have both – by Frank Ongaro (Mesabi Daily News – December 20, 2014)

http://www.virginiamn.com/

Frank Ongaro is executive director of Mining Minnesota, which is a group working with local citizens, businesses and other organizations to bring growth and job creation to the state through responsible development of natural resources.

But this simply isn’t a fair or accurate portrayal of the issues at hand. We are all environmentalists and we all enjoy the beauty and serenity of Minnesota’s wilderness. Our state has a lot to offer outdoor enthusiasts, and with a population above 3.5 million, there are many people who call Minnesota home who have an interest in protecting the outdoors for future generations.

A majority of these 3.5 million individuals also need jobs — jobs that support their families and provide opportunities for future generations of Minnesotans. Thankfully, we can have both — the environment and mining have coexisted for more than 130 years and with modern technologies, will continue to do so as we expand the state’s rich mining tradition.

Mining copper, nickel, platinum and palladium from one of the world’s largest, untapped source of these strategic metals in Minnesota’s Duluth Complex will provide thousands of high-quality jobs in a range of sectors, as well as the metals we all need for the growing green economy. Wind turbines and solar equipment require copper. Electric cars and rechargeable batteries use nickel and copper. The autocatalysts in cars require platinum and palladium.

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Many months, probably years for nonferrous mining in Northern Minnesota – by Aaron Brown (Minnesota Star Tribune – September 29, 2014)

http://www.startribune.com/

It’s been several months since the public comments period closed for the environmental review and permitting process for PolyMet, a controversial proposed nonferrous mineral mine in Hoyt Lakes, Minnesota. Most had hoped for news about the completion of the Environmental Impact Statement and a clearer timeline for the final permitting by this fall. However, a Marshall Helmberger interview of DNR commissioner Tom Landwehr in the Sept. 24 issue of the Timberjay shows that it could be years, not months.

For those following this issue closely, Helmberger’s story is a must-read.

The reason for the delay, according to Landwehr, is the unprecedented number of primarily critical comments, many of which involve unique and extremely detailed scientific questions and concerns. About 58,000 written comments were received, which raise between 7,000 and 8,000 unique concerns or questions about the massive Draft EIS document discussed last winter.

From the story:

Indeed, it’s by far the largest such undertaking in state history, and that makes it difficult for state officials to even estimate when the job might be completed. Landwehr was blunt: “We don’t know how long it will take. We can’t even say months.”

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Minnesota’s Soudan mine now produces awe instead of ore – by Ann Wessel (St. Cloud Times – September 20, 2014)

http://www.sctimes.com/

The mine that once produced the most pure iron ore in the U.S. closed more than 50 years ago. Soudan Underground Mine State Park interpreter James Juip is among those who make a living there today.

SOUDAN – James Juip makes his living underground. The 2006 Cathedral High School grad wears a hard hat, headlamp, bib overalls and flannel shirt when he descends the half-mile into Soudan Underground Mine. He dresses the part. He relays the history. He’s even had late-night home visits from former mine workers who want to tell him their stories.

But his experience is far different from that of the miners who chipped a living out of the rich veins of iron ore under the surface. He walks a well-lit path, for one thing.

Back in the day when candles provided the only illumination underground and miners had to pay for those candles, they conserved their resources and walked the three-quarters of a mile in the dark. About 20 languages were spoken. Miners sang on the way to work to keep track of each other. At peak production in the 1890s, Soudan employed 2,000 people below ground and as many above. Soudan produced the most pure iron; before 1950, all steel produced in the U.S. contained some Soudan ore.

“For a long time, you could not make high-grade steel produced in this country without using ore from Soudan,” Juip said after a day of tours.

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Birch Lake mining venture showcases its El Dorado — and stock price tumbles – by Ron Meador (Minnesota Post – August 26, 2014)

http://www.minnpost.com/

Last week we all got our first look at official projections of how the Twin Metals Minnesota copper/nickel mine at the edge of the Boundary Waters might proceed, and the numbers were frankly impressive:

  • $2.8 billion in capital investments to get TMM’s mines and processing facilities started, and another $2.6 billion in capital outlays over the first 10 years of operation.
  • A payback period on those expenditures of not quite six and a half years, thanks to a combination of favorably low production costs and a revenue stream estimated to flow at more than $12 billion in that first decade.
  • Metals production, over the 30 years that this phase might run, of 5.8 billion pounds of copper, 1.2 billion pounds of nickel, 1.5 million ounces of platinum, 4 million ounces of palladium, 1 million ounces of gold, and 25.2 million ounces of silver.

All in all, “one of the most compelling greenfield copper-nickel development projects in the world,” poised to be “one of the world’s great 21st century mines” — fortuitously situated to take advantage of low production costs, a ready work force with mining experience to fill an anticipated 850 jobs, and access to Great Lakes shipping. All in “a state that supports the mining industry.”

Those are the words of Kelly Osborne, CEO of Duluth Metals, the Canadian company that owns a majority of Twin Metals Minnesota, and you might think they would be music to investors’ ears.

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Returning Ely to its mining roots – Editorial (Ely Echo – August 24, 2014)

http://www.elyecho.com/

Ely’s mining history would awaken from a 47-year slumber under Twin Metals Minnesota’s $2.7 billion copper-nickel mining project that would create 850 jobs in the region.

There is no argument the minerals that lie below the Spruce Road will one day be mined and used for everything from cell phones to medical instruments to windmills. The only question is when this will happen.

Determining the when is like trying to win the lottery – there are many factors involved. Here are some of them:

1. Financial. Duluth Metals is now running the show at Twin Metals with a 60 percent ownership. Antofagasta, the big dog, has dropped down to a 40 percent stake and payment obligation. Can Duluth Metals pull together a financing plan to survive short term, and then a giant plan to build a $2.7 billion mining operation? Or is there another major player waiting to step in?

2. Technology/Environment. We have yet to hear anyone say they support this project no matter what the impact is to the environment. The question remains if there is technology available that can meet the state and federal requirements to build and operate the mining operation TMM proposes.

3. Political/Legal. PolyMet is the lead dog in the copper-nickel mining arena since it is closing in on getting permitted. But PolyMet seeks to build an open pit mine that will have no impact on the lightning rod known as the BWCA.

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Duluth PFS shows robust, high margin base/precious metals project – by Lawrence Williams (Mineweb.com – August 21, 2014)

 http://www.mineweb.com/

The latest PFS on the TMM project provides increasing confidence that the proposed underground mine remains hugely attractive in economic terms.

LONDON (MINEWEB) – Duluth Metals, which is working on moving an enormous base and precious metals project to the development stage in a controversial part of Minnesota, USA, has just announced it has received an independent draft feasibility study prepared by a multi-company team led by AMEC.

The draft PFS, part of an NI 43-101 compliant technical report shows the economics of the proposed underground copper/nickel/pgm mine are supported by fundamentals showing a competitive cost position, high margins sustained over time, and capital efficiencies resulting from outstanding regional and local infrastructure and competitive advantages.

The study was carried out on a proposed underground project which involves mining only a relatively small portion of the company’s Twin Metals Minnesota (TMM) resource on the massive Duluth Complex in eastern Minnesota, and the overall project area should support an even bigger, far longer life operation.

The area is environmentally sensitive and Duluth is keen to demonstrate that a smaller project can be developed which meets all environmental criteria while keeping surface disruption to a minimum by underground mining and very strict environmental controls on waste disposal, processing and tailings storage.

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