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Serving Northern St. Louis County, Minnesota

Ely big winner in latest round of IRRRB grants

Many area cities also receive more funding

Marshall Helmberger
Posted 12/20/14

REGIONAL— The communities of Ely, Babbitt, Soudan, and Orr were among the recipients of major infrastructure grants approved by the Iron Range Resources and Rehabilitation Board on Thursday. …

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Ely big winner in latest round of IRRRB grants

Many area cities also receive more funding

Posted

REGIONAL— The communities of Ely, Babbitt, Soudan, and Orr were among the recipients of major infrastructure grants approved by the Iron Range Resources and Rehabilitation Board on Thursday.

Ely was the biggest winner, garnering a total of $500,000 toward two projects, including $350,000 for student housing infrastructure at Vermilion Community College. In addition, the city will receive $150,000 toward runway improvements at the Ely airport.

The IRRRB also awarded $150,000 to Breitung Township (Soudan) for water line replacement, and $150,000 to the city of Babbitt for infrastructure upgrades along Elm Boulevard. The city of Orr will receive $53,099 for upgrades along Hwy. 23.

In total, the IRRRB approved $8.45 million in business loans and $6.2 million in infrastructure grants toward projects with a total investment of $119.2 million.

At the same time, the IRRRB approved a number of funding packages for local mining companies and for a new educational initiative.

Magnetation, LLC of Grand Rapids received a $6.5 million direct loan to cover expenses incurred during the construction of its fourth plant at the Canisteo Complex. The plant, built on former mine waste rock, has experienced unexpected subsidence during construction and the company incurred $13 million in additional costs in fixing the problem. The company is seeking a loan to cover the extra cost. The IRRRB approved a loan for half that amount, with expectation that the Department of Employment and Economic Development will provide the remainder of the funding gap.

Once completed, the company expects to hire about 160 additional employees to staff the $28 million operation. Magnetation generates iron concentrate by “mining” former mine waste that was too low a grade for economical recovery at the time it was originally mined.

The board also approved a $1.95 million loan to Silicon Energy of Mountain Iron, to help the company finance an expansion in 2015. According to an IRRRB document, Silicon Energy has developed a new, more competitive product for the Minnesota solar panel market. As a panel made in Minnesota, it qualifies for a substantial state subsidy, which should help the company expand its market share in the state.

The total project investment is $4.6 million and is expected to create four new jobs.

The board also approved $12.6 million in grants to assist mining companies as they reinvest in their operations on the Iron Range. Projects were approved at ArcelorMittal-Minorca; Hibbing Taconite Company; Magnetation, LLC; Mesabi Nugget; Mining Resources, LLC; Northshore Mining Company; US Steel – Keetac; US Steel - Minntac ; and United Taconite, LLC.

The board also approved $2 million in funding for Education Innovation Partners, an initiative created to provide students equal access to world class educational experiences. 

In other business, the board took its latest step to protect the Douglas J. Johnson Trust Fund, . The agency is looking to establish an independent corporation that would oversee the use of the fund. By establishing a spin-off entity, IRRRB officials hope to insulate the funds from being raided during periods of tight state budgets. Back in 2011, House Republicans proposed to use $60 million from the fund to balance the state’s books.