Skip to main content

Community Readiness Committee formed from Mesaba Project after Teck Cominco leaves

The Iron Range may see the economic impact of as many as four major projects sooner than expected. Updates on the Mesabi Nugget Project, NorthMet Project, Mesaba Energy Project and the Soudan Underground Laboratory were presented to the Community Readiness Committee, formerly the Mesaba Project Committee. Over 60 people, in addition to the two dozen committee members, were also in the audience at the Hoyt Lakes Arena Wednesday, August 25. The committee was formed to assess what is needed for each of these projects, such as road and infrastructure requirements, school and housing needed, as well as keeping everyone informed on the progress being made.Mesabi Nugget president, Larry Lehtinen gave an update on the Erie Nugget Project, for a Large Scale Demonstration Plant (LSDP) destined for development at the former LTV Cleveland Cliffs site. Kobe Steel of Japan developed the iron making technology known as Iron Technology Mark 3 (ITmk3). The process produces clean iron, saves energy, reduces pollution and provides easy production. ITmk3 incorporates the blast plant, pellet plant and coke plant into one operation. In comparison to a taconite plant, pollution will be reduced by as much as one-half to one-tenth of a current taconite plant. The nugget will be 95% metallic iron.There has been four phases in the Mesabi Nugget Project – permitting of the pilot plant; construction and operation of the pilot plant; financing of the LSDP; construction of the LSDP. The pilot plant at North Shore Silver Bay was constructed September 21, 2002 with the first nugget produced May 23, 2003. The pilot plant made 10,000 tons of nuggets in electric arc furnaces (EAF) with emissions shown to be 41% to 96% less than the blast furnaces or basic oxygen furnace (BOF) route.Other environmental concerns would be greatly reduced. They include a 59% reduction in mercury emissions; 41% reduction in carbon dioxide; 96% reduction in carbon monoxide; 60% reduction in dust; 78% reduction in sulfur dioxide; 65% reduction in nitrous oxide; and 86% reduction in volatile compounds.“The process is proving to be far cleaner than we expected,” said Lehtinen.With the first two steps completed, Mesabi Nugget is fast moving to the realization of a full-scale operation. Permitting was passed May 19, 2004 and funds were approved May 24, with a September 15, 2004 permit application. Lehtinen is confident permits for construction will be approved by April 1, 2005, with the possible production of the first nugget at the LTV site by June 1, 2005.The impact of jobs to the area may be as many as 400 for the construction of the LSDP, with 100 new direct jobs, 10 salary position at Mesabi Nugget and 40 laborers. An additional 50 jobs could be realized at North Shore Babbitt to accommodate the need for more mining and stripping. 200 spin-off jobs could be in the Iron Range’s future.The pilot plant at North Shore Silver Bay is shutdown, but will run next year (target date is for October) for a few weeks to train 40 new employees. The goal of the LSDP is to produce 500,000 tons of iron nuggets per year. With the high demand for steel, and pig iron selling for $400 a ton, a possible price on nuggets may be in the $250 to $275 range.Lehtinen said plans would continue for the development of the nugget plant at North Shore Silver Bay. “Silver Bay is our first choice,” said Lehtinen. “Logistically it makes sense.” This comment was in reference to the mining at North Shore Babbitt and its railroad to the Lake Superior harbor in Silver Bay.In response to a question about mercury affecting area lakes, Lehtinen explained that mercury is recaptured in scrubbers. The emissions from ITmk3 is 60% lower than the emissions from the LTV taconite plant when it was in operation.“About 82 pounds of mercury a year were emitted into the atmosphere at LTV,” said Lehtinen. “It travels around the globe for about three years before it drops back down in rain. The mercury in our water comes from Asia.”With the high demand for steel, Lehtinen said it would be far better for the global environment if this process was being used all over the world. “I am proud that Minnesota is leading in the forefront of cleaner iron production,” said Lehtinen.

Sign up for News Alerts

Subscribe to news updates