From Business North - December 10, 2018

EVELETH – Northeastern Minnesota's six iron ore pellet producers are receiving $8.4 million in rebates from the Minnesota Department of Iron Range Resources and Rehabilitation for capital improvement projects at taconite plants.

  The Iron Range Resources and Rehabilitation Board (IRRRB), which considers projects recommended by the agency's commissioner, approved the funding Monday at a board meeting at IRRRB headquarters in Eveleth.

  The money comes from the agency's Taconite Economic Development Fund (TEDF), which refunds a portion of the taconite production tax paid by the mining companies. Each company must match the grant amount.

  TEDF projects approved are:

  • $690,864 to ArcelorMittal Minorca toward a minimum $2,019,639 multi-clone replacement project.

  • $1,936,497 to Hibbing Taconite Mining Co. toward a minimum $4,100,00 mill gear and pinion replacement project.

  • $1,232,195 to Northshore Mining Co. toward a minimum $9,907,000 project to install a new heating steam generation facility.

  • $835,855 to United Taconite toward a minimum $8,132,000 Mustang Fluxstone Handling System project.

  • $558,062 to Keetac toward a minimum $550,000 tails basin reclamation and dust control project and a minimum $950,000 Line 3 primary screening upgrade.

  • $3,176,057 to Minntac Mine toward nine projects totaling a minimum of $6,352,114. Projects include new Step I & II cleaner magnetic separators, a mine extension to the south, Line 4 indurating control system, agglomerator Step I reclaim pump, primary crusher #3 slope doors, tailings basin seeding and mulching, concentrator classifier and boiler management upgrades, and angle troughers on conveyor belts which carry taconite from the primary crushers to the fine crusher.

  Fourteen grants totaling $3,072,000 were approved from the Community Infrastructure Grant program to assist communities within the agency's service area with infrastructure development projects which support community development. In total, the projects are valued at $34.7 million.

  Community Infrastructure grants are:

  • $250,000 to the city of Babbitt to assist with infrastructure development at a new $2.7 million, 22-acre Birch Lake Recreation area campground.

  • $220,000 to Breitung Township toward a $1.15 million project to develop a town hall/community center at the former Breitung fire hall and garage.

  • $250,000 to the city of Buhl to assist with $3.2 million in city-wide replacement of sanitary sewer, water main, storm sewer, streets, sidewalks and water and sewer service lines.

  • $250,000 to the city of Calumet for $3.1 million in infrastructure improvements to streets.

  • $70,000 to Cook County/Grand Marais Economic Development Authority toward a $143,000 project to update infrastructure to allow growth of the county's only child care facility.

  • $150,000 to the city of Deerwood for a $1.1 million project to demolish the existing water tower, development of a new tower and replacing undersized water lines in the city.

  • $250,000 to the city of Cohasset to develop a $2.2 million community center that will include new child care options and a senior center.

  • $250,000 to the city of Ely toward $1.7 million in water, sewer and street improvements on West Camp and Pattison streets.

  • $250,000 to the city of Gilbert toward phase II of a new $12 million wastewater facility.

  • $225,000 to the city of Iron Junction for a $305,750 municipal water system upgrade.

  • $159,000 to the city of Mountain Iron/Mountain Iron Economic Development Authority to assist with expanding of a healthcare business.

  • $250,000 to Silver Bay to support a $1.8 million development of a 49-unit municipal campground along the North Shore.

  • $300,000 to the city of Two Harbors for the $2.4 million construction of a new performing arts center.

  • $110,000 to Virginia for a $2 million reconstruction of Midway Drive.   

  The board also approved:

  • A $90,000 real estate loan and $165,000 equipment loan to Airmark, Inc., of Cohasset, to help the wooden shim manufacturer expands its facilities and production capability. Three new jobs would be created.

  • A $200,000 loan, $50,000 training grant and $260,000 building lease grant to API Outsourcing of Two Harbors to develop RoBotic Process Automation management services. Ten new jobs would be created.

  • A $75,000 loan to Zakobe, LCC of Bovey to help the company buy new metal stamping equipment. One new job will be created.