Since the beginning of this year, Mesabi Metallics has had more than a dozen project-update meetings and facility tours of our 7 million ton per annum taconite facility under construction, with business owners, union officials and leaders, community leaders, local and state representatives, and members of the general public.
A few of the most frequently raised issues are addressed here for those who haven’t yet been able to join us for these exciting discussions about our Mesabi project progress.
Mesabi Metallics’ project is located in what is known as the Butler Corridor, which ranges from the City of Nashwauk to the City of Calumet. There are approximately 2 billion tons of taconite ore under a mix of ownership and control in the Butler Corridor. Within this area are approximately 2,200 acres of state-controlled mineral leases, along with private mineral leases and mineral leases that Mesabi Metallics controls, and other properties Mesabi owns directly. In total, Mesabi Metallics owns approximately 16,000 acres in this region.
Mesabi Metallics is not here to compete with the other taconite operations on the Iron Range of Minnesota, rather, we are here to help meet the real and growing demand for clean energy-based direct reduction (DR) grade pellets in the United States and internationally. Much of the vast ore resource in the Butler Corridor is of the quality that is most suited for producing DR grade pellets.
There’s also a real and growing demand to produce environmentally friendly green steel both in the United States and globally to decarbonize the energy intense steel industry. Mesabi Metallics is the only entity in Minnesota permitted not only for DR pellet production but also for steel production. The United States imported approximately 22 million tons of steel in 2022, so there is also demand capacity for our product here in our great nation.
For 130 years Minnesota has shipped its iron ore units across America to Pittsburgh, Cleveland, Detroit and elsewhere to produce steel. Those steel towns enjoyed the economic benefits directly from the steel mills and the jobs they created in these regions as well as from spinoff industries such as appliance makers, pipe manufacturers, and auto makers. Minnesota is the largest producer of domestic iron ore used in steel making nationwide, yet still benefits the least from it economically.
It is our long-term vision to produce environmentally green steel right here in the Butler Corridor. Doing so will benefit not only the citizens of the Iron Range, but also the governmental entities and the State of Minnesota as a whole by positioning it at the cutting edge of the green steel initiative in the United States. Let’s begin this dynamic initiative of decarbonizing the steel industry by starting in Northern Minnesota where the geological formation of iron ore lies. We can greatly benefit our union workforces and citizens of this region, just as the large steel conglomerates have done for decades in other parts of the country.
Mesabi Metallics’ mine and pellet plant near Nashwauk has the potential to generate an estimated $300 million to Itasca County and $100 million to the state’s Department of Natural Resources in the case of a 30-year mine life. Our mine and taconite processing facility will produce hundreds of high-paying steelworker jobs for decades.
In addition, Mesabi Metallics’ hot briquetted iron (HBI) facility, electric arc furnace (EAF) and hot-rolled coil steel mill, powered by renewable energies, will produce millions of dollars in additional revenues to Itasca County, Iron Range communities, and the State of Minnesota as a whole. In total, along with our 7 million ton per annum taconite facility, we will generate approximately 2,000 full-time steelworker jobs. This figure does not include the jobs that will be created for our local Building and Construction Trade Union workers who will be employed for the construction of these facilities and the ongoing outage and repair work that will be required to move forward. Of course, there is also the potential of thousands of spin-off logistics, supply chain, and support jobs associated with these large industrial and steel facilities for decades to come.
Mesabi Metallics is excited to be bringing these visions into reality. We continue to work closely with our state regulatory agencies to complete an amendment to our current permit to mine. While this process is underway, construction activities on the taconite facility continue and there are approximately 100 Trade Union workers on site today. We look forward to hiring hundreds more to ramp up these construction activities as we continue to obtain clarity on the timing of our permit to mine amendment completion.
We look forward to not only the sustainability of our taconite industry across the Iron Range, but also to the economic benefits that producing steel locally on the Iron Range of Minnesota will bring to this region.
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Larry Sutherland is the President and Chief Operating Officer of Mesabi Metallics Co. LLC
