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Mining in Minnesota

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Title: Mining in Minnesota


1
Mining in Minnesota
2
(No Transcript)
3
Iron Range
4
Iron Range
5
Mining
  • Statistics of US businesses. 2006. Mining
    Minnesota (US Census Bureau)
  • Mining in Minnesota (National Mining Association)
  • Minnesota iron mining-our communities, state and
    nation depend on it (Iron Mining Association)
  • The Minerals Industry in Minnesota (US Geological
    Survey)
  • Iron Ore Statistical Compendium (USGS)
  • Iron Ore Statistics and Information (USGS)
  • The Mesabi Iron Range (Answers.com)
  • Iron Mining Association of Minnesota

6
  • Mining in Minnesotas Iron Range (Friends of the
    Boundary Waters Canoe Area)
  • Governors Committee on Minnesotas Mining Future
  • US Steel tariffs and the Iron Range
  • Iron Range Mining frontier (Macalester College)

7
  • Minnesota Department of Natural Resources,
    Division of Lands and Minerals
  • Mining in Minnesota (Minnesota DNR)
  • Geology Education (DNR)

8
Minnesota Iron Mining
  • Tied to steel tracks (Federal Reserve Bank of
    Minneapolis)
  • Minnesota pilot plant (Online Insider)
  • Iron mining 2002 (MPR)
  • Surprise revival for iron mines of Minnesota
    (Christian Science Monitor April 22,2004)
  • Minnesota iron goes global (MPR May 19, 2005)
  • In Minnesota, mining makes and comeback (CNN.com
    Nov 21, 2007)
  • Session Daily - Mining proposals come under
    scrutiny (Jan. 25 2008)
  • New mining era for northeastern Minnesota -- and
    new environmental worries (MinnPost.com Jan 24,
    2008)
  • Taconite Mines and Plant Expansions (Sierra Club)

9
  • Layoffs loom as Iron Range feels pinch of tough
    economy (MPR Dec 1, 2008)
  • Taconite piles up as Iron Range mines shut down
    (MinnPost.com)

10
  • In 2006, Minnesotas nonfuel raw mineral
    production valued at 2.54 billion
  • 350 million, or 16, increase from the States
    total nonfuel mineral value for 2005
  • Nations leading iron ore producing State in 2006
    about 80 of ore within the United States
  • Iron ore is the States leading nonfuel mineral,
    ca.85 of the total nonfuel mineral production
    value
  • Construction sand and gravel
  • Crushed stone
  • Industrial sand and gravel
  • Dimension stone
  • Lime
  • Peat
  • Common clays
  • Gemstones

11
  • 6 producing iron ore mines in Northeast Minnesota
    capable of producing over 40 million tons of
    taconite annually
  • The iron mines directly contribute 1.8 billion
    to the economy of Minnesota every year in the
    form of purchases, wages and benefits, taxes, and
    royalties
  • Subsequent business impact induced as the result
    of iron mining is responsible for more than an
    additional 1.6 billionmaking the total economic
    impact 3.1 billion on the state and regions
    economy
  • Currently the mines directly employ approximately
    3,000 men and women, with supporting an
    additional 1210,000 employed by vendors jobs
  • Part of the direct impact to the economy includes
    taxes and royalties paid by the iron mining
    industry
  • Taxes payable in 2008 equaled 148.7 million
  • Distribution of those taxes included 56.9
    million towards Minnesotas education--45.8
    million to K-12 and 11.1 million to the
    University Trust Fund

12
Historical Overview
  • History of mining and quarrying in Minnesota
    (Upham,1898)
  • Iron Mining in Minnesota (Van Barneveld, 1912)
  • Timeline of Minnesotas Iron Range (MPR)

13
  • Iron Mining
  • Natural Ore
  • Taconite
  • Taconite (Wikipedia)
  • Taconite Mining and Processing Industry Profile
    (EPA, 2001)
  • Taconite (Minnesota Statutes)
  • Taconite (Minnesota Historical Society)
  • Iron Ore Energy, Labor, and Capital Changes with
    Technology (1978)
  • Iron Ore From Depletion to Abundance (1981)
  • Mining Minnesota (non ferrous)

14
Taconite Overview
  • Taconite Digging into Minnesotas past (DNR)
  • STEEL Taconite Boom (Time April 28 1952)
  • 2 edges of technological progress the case of
    Lake Superior iron mining (Federal Reserve Bank,
    Minneapolis)
  • Mining process (Iron Mining Association of
    Minnesota)
  • The iron pellets mines have to transport and
    deliver their product to the steel mills in the
    eastern United States is by the ore boats known
    as Lakers

15
Cliffs
  • An international mining and natural resources
    company
  • Largest producer of iron ore pellets in North
    America, a major supplier of direct-shipping lump
    and fines iron ore out of Australia and a
    significant producer of metallurgical coal
  • The North American business unit is comprised of
    six iron ore mines in Michigan, Minnesota and
    Eastern Canada, and two coking coal mining
    complexes in West Virginia and Alabama in
    Michigan Empire Mine and Tilden Mine , in
    Minnesota - Hibbing Taconite, Northshore Mining
    and United Taconite in Canada Wabush Mine 
  • History
  • United Taconite
  • Cleveland-Cliffs Acquires Minority Partner's
    Interest in United Taconite (CBS Interactive July
    14, 2008)
  • United Taconite to Up Production, Return to
    40-Hour Workweek (CBS Interactive Sept 7, 2009)

16
  • The Eveleth Expansion Company was formed in
    Minnesota in March 1976 as a partnership between,
    Virginia Horn Taconite Company, Ontario Eveleth
    Company, Dofasco Eveleth Corporation, and ONCO
    Eveleth Company.
  • The partnership was created to produce and
    deliver taconite pellets to a mining venture
    called the "Expansion Project," which was also a
    partnership between Eveleth Expansion Company and
    several large American and Canadian firms such as
    Armco Steel, Oglebay Norton, Eveleth Taconite,
    and Dominion Foundries and Steel, Ltd.
  • Eveleth taconite plant closes (MPR May 14 2003)

17
Essar Steel
  • Essar Steel Minnesota LLC has access to iron ore
    resources of over 1.4 billion tonnes
  • The company plans to set up an integrated steel
    plant on the Mesabi iron range in northeast
    Minnesota
  • The estimated cost of the project is USD 1.65
    billion the plant will have an annual capacity
    of 2.5 million tonnes per annum (MTPA) when
    completed
  • The strategy is to combine a high-quality orebody
    with modern and commercially proven technology
    and develop a vertically integrated steel mill
  • It will be the first facility in North America to
    include iron ore mining, ore processing, direct
    reduction and steelmaking on a single site
  • Location
  • Essar Steel breaks ground on Nashwauk plant (MPR,
    Sept 19, 2008)
  • Judges consider Essar Steel Minnesota project
    impact on environment (Steel Guru July 21, 2009)

18
Mesabi Nugget Project
  • Steel Dynamics and Kobe Steel Ltd. have partnered
    to construct and operate at Hoyt Lakes,
    Minnesota, the world's first full-scale
    demonstration plant using the pioneering ITmk3
    process developed by Kobe Steel
  • This process promises to be both environmentally
    friendly and energy efficient, reducing emissions
    by more than 40 percent compared to current
    processes and using 30 percent less energy than
    integrated steelmaking
  • This plant is expected to produce high volumes of
    97-percent-pure iron nuggets very
    cost-effectively
  • Mesabi Nugget Project (Minnesota DNR)
  • Mesabi Nugget announces delay in start-up
    (MinnesotaBrown, May 23, 2009)
  • Mesabi Nugget taconite plant to start work soon (
    Advantage Business Media Sept 29, 2009)

19
Mesabi Nugget Project
20
Duluth Metals Limited
  • Canadian mineral exploration Corporation which
    has completed a number of preliminary economic
    assessments on a large, potentially bulk-mineable
    underground copper-nickel- deposit located in the
    Duluth Complex in northeastern Minnesota, USA
  • The Nokomis Deposit is situated southeast of Ely
  • Consists of approximately 3,000 acres of land in
    a combination of State Leases, a private mineral
    lease and Federal Prospecting Permits

21
(No Transcript)
22
Duluth, Missabe and Iron Range Railroad
  • Acquired on May 10, 2004 by the Canadian National
    Railway
  • when it purchased the assets of Great Lakes
    Transportation
  • Great Lakes Transportation LLC is a group of
    transportation related companies primarily
    consisting of rail and water carriers catering to
    the needs of the steel making industry centered
    around the Great Lakes of North America. GLT
    companies include
  • Bessemer and Lake Erie Railroad
  • Duluth, Missabe and Iron Range Railway
  • Great Lakes Fleet, Inc.
  • Pittsburgh Conneaut Dock Company
  • Formerly owned by the privately-owned Transtar,
    Inc., GLT's rail and marine holdings were
    purchased in 2004 by the Canadian National
    Railway for 380 million USD.
  • Great Lakes Fleet operates eight Great Lakes bulk
    carriers ranging from 1,004 feet long to 767 feet
    long.
  • How the railroads that serve the Iron Range
    evolved and consolidated

23
Gender Discrimination
  • North Country
  • It was like they'd never seen a woman before
    (Guardian Feb 3, 2006)
  • Lois E. Jenson v Eveleth Taconite Co. (FindLaw)
    Unofficial
  • Jenson v Eveleth Taconite (Wikipedia)

24
Silver Bay and Reserve Mining
25
Reserve Mining Company
  • History of Silver Bay
  • Northshore Mining originally operated as Reserve
    Mining Company, was the first taconite processing
    facility in North America when it opened in 1955.
    After Reserve filed for bankruptcy in 1986, the
    plant was downsized to 4.8 million tons per year
    capacity and reopened in 1990 as Northshore
    Mining Company. Now owned by Cliffs
  • U.S. v. Reserve Mining Co., 380 F. Supp. 11, 17
    (D. Minn. 1974)
  • US v Reserve Mining (J Water Pollution Control
    Federation, 1976)
  • The legacy of the Reserve Mining case (MPR Oct
    29, 2003)
  • Miles Lord calls for a halt to taconite projects
    (MPR Feb 23, 2005)
  • Company seeks to reopen 1970s Reserve Mining case
    (MPR July 31, 2007)

26
Financial Aspects of Iron Mining
  • The Taconite Amendment (Lake Benton Valley News
    July 27, 1961)
  • Minnesota Constitution
  • Mineral Lands (Minnesota Statutes)
  • Mining (Minnesota Statutes)
  • Taxing Severed Minerals (Minnesota Statutes)
  • Taxing Severed Minerals (Minnesota Statutes)
  • Iron Ore Tax (Minnesota Statutes)
  • Taconite and Iron Mining (Department of Revenue)
  • Mining Tax Guide (Minnesota Department of
    Revenue)
  • Mineral Taxes (Department of Revenue)
  • Mining Tax Study (Minnesota Taxpayers
    Association)

27
Iron Range Resources
  • State of Minnesota economic development agency
    located in Eveleth, Minnesota
  • Mission is to advance regional growth by
    stabilizing and enhancing the economy of
    northeastern Minnesota's Taconite Assistance Area
  • Services include business development consulting
    and financial assistance
  • Business Financing
  • Low Interest Business Loans
  • Economic Development Grants
  • Minnesota Business Opportunities
  • Tax-Free Commercial Real Estate
  • Grants for redevelopment (WDIO Nov. 17 2009)
  • History of Agency
  • Range Review

28
Federal Reserve Bank of Minneapolis
29
Health Risks of Taconite Mining
  • Is Taconite Killing Miners? (MPR Aug 7, 2007)
  • Rule and Implementation Information for Taconite
    Iron Ore Processing (EPA)
  • Mesothelioma.net
  • Minnesota Taconite Workers Health Study
    (University of Minnesota)
  • Two Taconite Minnesota Mining Operations Could Be
    Held Accountable for Exceeding Asbestos Exposure
    Limits (Asbestos Network April 23, 2008)

30
LTV Steel Mining Co.
  • May 24, 2000 LTV Steel Company, Inc., a
    subsidiary of The LTV Corporation announced its
    intention to close permanently the operations of
    LTV Steel Mining Company, a producer of taconite
    (iron ore) pellets located in Hoyt Lakes,
    Minnesota.
  • LTV Steel Mining is no longer able to provide LTV
    Steel with taconite pellets of competitive
    quality or cost
  • LTV Steel said that its blast furnaces are
    experiencing lower levels of productivity and
    higher costs as a result of operating problems
    related to poor taconite pellet quality
  • Pension Plan
  • Mine Closing Rocks Iron Range (MPR)

31
PolyMet Corporation
  • PolyMet Mining Inc./NorthMet Project
  • PolyMet Mining, Inc. (PolyMet) proposes to
    develop an open pit mine and to refurbish and
    modify the former LTV Steel Mining taconite ore
    processing facility to extract copper metal and
    precipitates of nickel, cobalt and precious
    metals near Babbitt and Hoyt Lakes in
    northeastern Minnesota
  • The DNR and the U.S. Army Corps of Engineers are
    preparing a joint Environmental Impact Statement
    (EIS) that will satisfy both state and federal
    environmental review requirements
  • Draft Environmental Impact Statement (Minnesota
    DNR)

32
Franconia Minerals Corporation
  • Position on non-ferrous mining in Minnesota
  • Currently focused on the development of the Birch
    Lake copper-nickel-platinum-palladium project -
    in the highly prospective Duluth complex in
    northeastern Minnesota
  • The recently updated report estimates an
    Indicated Resource of 131.2 million tonnes, plus
    an Inferred Resource of 37.5 million tonnes for
    the Birch Lake deposit (see news release of
    September 23, 2009)
  • Underground mining at Birch Lake will minimize
    the surface impact of the operation
  • Storage of mine wastes underground would further
    minimize the surface impact
  • Additional resources at the Birch Lake project
    include Inferred Resources at the Maturi deposit
    (see news release of September 6, 2006)
  • and at the Spruce Road deposit (see news release
    of December 3, 2007)

33
Non-Ferrous Mining
  • MiningMinnesota - seeks to give Minnesotans the
    facts about non-ferrous mining efforts currently
    being proposed in the state
  • Non-Ferrous Mining in Minnesota (Minnesota Center
    for Environmental Advocacy)
  • Paychecks v. protection Sulfide mining in
    Minnesota (Mother Nature Network)
  • Environmental group produces film on sulfide
    mining (MPR, Nov. 5 2009)
  • Battle Brews Over Mining Proposals for Northern
    Minnesota (Fox News June 6, 2009)
  • Safe Mines to Protect our Waters (Minnesota
    Environmental Partnership)
  • Precious Waters (Friends of the Boundary Waters
    Canoe Area)

34
  • Mining nature's bounty Minnesota transforms an
    abandoned iron field into a revenue-building
    recreational resort (The Free Library) Giants
    Ridge
  • Taconite tailings find second life in road
    construction (MPR)
  • Historical Use of Taconite Byproducts as
    Construction Aggregate Materials in Minnesota A
    Progress Report (Natural Resources Research
    Institute)
  • The next iron rush (CNNMoney.com May 20, 2009)
  • Special focus iron mining goes green
    (BusinessNorth.com July 9, 2009)
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