Several experts said that Northeastern Minnesota's taconite mines have mirrored the economic downturn in 2009 hitting the national steel industry, with a massive hit to state and local revenues.

Mr Bob Wagstrom engineering specialist of Minnesota Department of Revenue's Eveleth office said that "It's been the worst since I've been here, and I've been here 25 years."

He sees the year ending at 17 million tonnes of iron ore pellets produced, down starkly from the 39.2 million tonnes produced in 2008. With taconite taxes at USD 2.364 per tonne, 2009 is on track to yield only about USD 40.18 million, down more than 50% from USD 89 million in taconite productions taxes in 2008.

The impact will be felt harshly on the Iron Range. Taconite producers pay taxes on tonnage produced, in lieu of property taxes or royalties. Minnesota and municipalities and school districts in the taconite tax area benefit from the taxes. The Iron Range Resources Board in Eveleth determines the use of most of the funds. Money is distributed on a three-year production average.

The previous lowest production totals Wagstrom could recall were 23.2 million tonnes in 1982 and 25.4 million tonnes in 1986, both years of turmoil in production, mine closings and cutbacks.

Here are expected 2009 taconite production tonnage totals for the six mines on the Range:

1. Minntac, owned by US Steel, in Mountain Iron, 7.1 million tonnes

2, United Taconite, owned by Cliffs Natural Resources, in Eveleth and Forbes, 3.5 million tonnes

3. Northshore Mining, owned by Cliffs Natural Resources, in Babbitt and Silver Bay, 3.2 million tonnes

4. Hibbing Taconite, operated by Cliffs Natural Resources, 1.7 million tonnes, before the plant was shut down for most of the year

5. ArcelorMittal's Minorca Mine, in between Virginia and Gilbert, 1.4 million tonnes

6. Keewatin Taconite, owned by US Steel, 1 million tonnes, from stockpile sales previously stored. The plant has been closed to production all year

(Sourced from Mesabi Daily News)