So, what's happening with mining on Range? - Mine - Hibbing Daily Tribune
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So, what's happening with mining on Range?
Posted 3 hours ago
There’s a lot of activity going on at all Iron Range taconite plants, the innovative Magnetation business that is producing concentrate from iron ore waste going back 100 years and at companies currently in development for copper/nickel/precious metals ventures.
Here we take a snapshot look in a roundup of mining on the Iron Range. This feature will be a regular page of all future MINE editions.
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ESSAR STEEL MINNESOTA:
The past year for Essar Steel Minnesota has been a slow moving machine as the company works toward the development of a new facility outside of Nashwalk. In July, 2013, the Hibbing Daily Tribune featured an article on the benefits of the location on the west end of the Iron Range, including what advantages such a project would have for the mining industry in northern Minnesota. At the time, the facility was slated to be open by June 2014.
A couple weeks later, it was announced that the Essar Steel plant opening would be delayed, though it would still be operational in the second half of 2014, and that pellets would be out for distribution by early 2015.
In May 2014, Essar closed on $450 million in bond sales for the Nashwalk plant, and is still currently processing the bond paperwork and ensuring the conditions of the bonds are met. A timeline for operations won’t be made public until the bond sales are fully processed.
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TWIN METALS:
• Twin Metals Minnesota (TMM) is pursuing the development and operation of an underground mining project in northeastern Minnesota, seeking to recover copper, nickel, gold, silver, and platinum and palladium (PGM) mineral resources.
• TMM is focusing its efforts on the potential mining of the Maturi and Maturi SW mineral deposits, located approximately 15 miles to the southeast of Ely, and 10 miles to the northeast of Babbitt. The Maturi and Maturi SW deposits are located within the Duluth Complex, one of the largest untapped sources of copper, nickel and PGM resources in the world.
• TMM is nearing completion of its Prefeasibility Study (PFS), an internal effort focused on refining mineral resource estimates, narrowing options for underground mine development and potential future mine operations, and selecting a “preferred option” to move forward for further detailed study and design. Completion of the PFS is an important milestone in eventually proposing a detailed “Mine Plan of Operations” to state and federal regulatory agencies for environmental review and permitting.
• TMM currently has approximately 40 employees with offices in Ely and St. Paul.
• To date, TMM has invested more than $250 million in exploration and project development activities, supporting more than 100 direct, consultant and contractor jobs within Minnesota.
• TMM is a joint venture company, 60 percent owned by Duluth Metals Ltd. and 40 percent by Antofagasta PLC.
• TMM received Finance and Commerce’s 2012 Progress Minnesota award, which recognizes companies that are driving business growth and development in Minnesota in unique and innovative ways.
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POLYMET:
Q. Thoughts on the SDEIS process still in comment review; total number of comments and when they are expected to be finished?
A. The Department of Natural Resources and co-lead agencies are sorting through the approximately 55,000 comments they received during the 90-day public comment period and is beginning to address them. While they have not yet provided a timeline for completion of the EIS, PolyMet anticipates the document will be finalized by the end of this year. According to PolyMet: “We expect the DNR to provide a schedule for finalization of the EIS sometime this summer. The good news is that there does not appear to be any surprises or new information in the comments that would require additional work on our part that would lead to delays. We’re doing everything we can to support the process and keep it moving forward.”
Q. What is PolyMet doing as far as getting prepared for going operational?
A. In addition to supporting the finalization of the EIS, PolyMet Mining is talking with financial institutions in preparation for obtaining the capital that will be needed to build the mine and processing facilities. “We’re also conducting pre-engineering work so we’re ready to start building as soon as we have permits in hand. The plans for how we’re going to manage that capital, order and schedule materials, hire and manage contractors and attend to all the details that are associated with building a project of this size and complexity are all in the works right now.”
Q. Update on timelines and whether they’ve changed.
A. “It’s difficult to provide a timeline because we do not control the schedule for when the environmental review will be completed,” according to PolyMet. “But we believe the environmental review will be completed by the end of this year and permitting finished by mid-year 2015. We would then begin construction, which is expected to be about 15 months. We continue to make good and steady progress.”
Q. Total investment at this point and how much for environmental review.
A. As of April 30, 2014 PolyMet had spent a total of $67 million on costs associated with environmental review and permitting out of a total of $205 million since 2006.
Q. Any additional comments regarding employees and hiring.
A. “We are humbled by the numerous applications and resumés we’ve received from men and women who want to work at PolyMet. We’re doing everything we can to get to a point where we can start hiring them, unfortunately, that’s still many months off as we work through finalization of the EIS and then permitting. We are keeping all the applications on file and look forward to the day when we can start putting people to work.”
Q. General comments.
A. “This continues to be a great project that will bring economic benefit to the region by producing essential metal we all use every day all while meeting Minnesota’s strict environmental standards. We are very grateful for all the support we have received as we work our way through the environmental review and permitting process.”
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CLIFFS NATURAL RESOURCES:
The company does not provide specific production numbers on its plants on the Iron Range.
However, spokeswoman Jennifer Huetter said Northshore Mining, United Taconite and Hibbing Taconite are all on schedule for the year.
Northshore received the Cliffs President’s Safety Award for its 2013 performance. “Safety is the number one core value at Cliffs, so to receive recognition for safety performance is reflective of the commitment put forth by Northshore employees,” Huetter said in an email.
Julie Lucas, environmental manager at Hibbing Taconite, received SME’s Minerals Education Coalition Leadership Award.
Julie Varichak, senior mine engineer for Cliffs North American Iron Ore, received the Hibbing Area Chamber of Commerce’s Range Young Professional Award.
And Cliffs Natural Resources was awarded the Pro Patria Award from the Employer Support of the Guard and Reserve.
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MESABI NUGGET:
• Steel Dynamics Inc., is the majority owner (81 percent) of Mesabi Nugget.
• First product produced in January of 2010.
• Employs new technology and is the only facility in the world that manufactures iron nuggets.
• Uses Mining Resources concentrate to produce high purity, metallic iron nuggets that are perfectly suited for use in an Electric Arc Furnace (EAF) — ushering in a “New Age of Iron for Minnesota’s Iron Range.”
• Reclaiming previously abandoned natural ore tailings to produce concentrate for use in a value-added iron product that services the growing part of the steel industry — the Electric Arc Furnace segment of the industry.
• The EAF segment for the steel industry comprises nearly two-thirds of the U.S. steel industry. Mesabi Nugget is the only Iron Range company that can supply that steel-making segment.
• Plant availability and production rates continue to improve — 2010: 75,000 metric tons; 2011: 156,000 metric tons ; 2012: 178,000 metric tons; 2013: 214,000 metric tons.
• Current focus is to improve the overall cost structure by reducing raw material consumption rates and improving product yield.
• Recently completed a maintenance outage to make further investments in the facility and to allow for further cost-reduction activities.
• More than 130 current full-time employees.
• This past March, Mesabi Nugget received a Certificate of Commendation from the Minnesota Pollution Control Agency for the performance of the wastewater treatment facility recognizing its efforts to help protect and preserve the waters of Minnesota.
• Employees at Mesabi Nugget and Mining Resources and their parent company, Steel Dynamics, have been significant contributors to the United Way of Northeastern Minnesota. Employees contributed more than $62,000 in 2013; the companies matched their generosity, resulting in a total contribution just shy of $125,000.
• Strong donations/contributor to the United Way’s Arctic Splash event last March. Mesabi Nugget and Mining Resources were the top two donation contributors.
• Mesabi Nugget is hiring, currently seeking entry level operators, electricians, mechanical engineers, and warehouse clerks. Visit www.mesabinuggetmn.com to submit a resumé.
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KEETAC:
Production at Keewatin Taconite is progressing as would be expected at this time of year, according to Courtney A. Boone, manager of media relations for United States Steel Corporation.
Specific numbers of how far into this year’s production aren’t available, as U.S. Steel only provides annual numbers.
There are currently no new projects underway at Keetac nor has U.S. Steel announced any new projects, said Boone.
While Keetac has earned safety awards in past years, the facility and its employees have not received any this year, she said.
Keetac was awarded the Sentinels of Safety Award in 2013 by the National Mining Association (NMA) for achieving outstanding safety performance.
It was also recognized in the large open pit category for its 2012 safety record and received an internal award, the Chief Executive Officer’s Safety Award, in 2013 in recognition of its safety record.
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MAGNETATION:
During the last year, both major and minor strides have been made by Magnetation as the company progresses in taconite reprocessing on the Iron Range.
Using magnetic separation technology, Magnetation has created a new business that captures the iron ore particles from the waste of previous mining operations.
In September 2013, a partnership was formed with the Itasca Gun Club so that Magnetation could begin work on Plant 4 in Coleraine. The gun club received a $10,000 donation from Magnetation President Matt Lehtinen to assist in its relocation.
Besides displacing the Itasca Gun Club, the location of Plant 4 is also over a small portion of the Mesabi Trail. At its own expense, the mining company is having the trail rerouted to keep it usable.
In a letter to the editor that ran in the Grand Rapids Herald-Review on Sunday, Dec. 29, 2013, representatives of Get Fit Itasca commended Magnetation for its effort to maintain the Mesabi Trail to preserve recreation in the area.
The building of Plant 4, for which ground was broken in May, will employ as many as 500 workers during peak construction season during the summer. Overlooking the Canisteo Pit, the plant, otherwise known as Mag 4, will take advantage of the leftover ore from nearly two dozen mines that were in operation at the pit.
Reynolds Ind., will be the location of Magnetation’s iron ore pellet plant. Grand Rapids-based Northern Industrial Erectors (NIE) was awarded the job of erecting the steel for the new plant, whose site was chosen based on regulation expediency and proximity to AK Steel blast furnaces in Ohio and Kentucky.
And in community connection news, President Matt Lehtinen won the 2014 Dancing With Our Stars dance competition at the Reif Center in Grand Rapids with Reif Dance Co. member Katja Piscitelli.
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