AP reported that Douglas County administrator Mr Andy Lisak likes to think a site in Superior is perfect for an iron pellet plant.
He probably became more convinced this week when officials from Magnetation Inc announced that they were through trying to put a pellet plant in Itasca County, citing an onerous permitting process. The company employs 150 people at two iron ore recovery and concentration operations on the Iron Range and now is looking for somewhere to put a plant that would make pellets out of the ore.
Mr Lisak said the permitting process could go more smoothly in Superior, where a site has been prepared in Parkland Industrial Park. He added that "We think this is the best place. We are in the Northland."
Magnetation's decision against Minnesota is not a surprise. Early this year, CEO Mr Larry Lehtinen hinted the company was leaning toward a plant outside of the Iron Range with Superior and a site in Indiana in the running.
Magnetation president Mr Matt Lehtinen made the announcement Monday at a Chamber of Commerce lunch in Grand Rapids. He said the site selection was down to the two sites.
Iron Range officials were irked by the thought of Magnetation putting a plant, and its 150 jobs, out of state, especially after the company received state money to get up and going. Magnetation countered, saying its economic impact has exceeded any state help it received. Two concentration plants are expected to open in Itasca County in 2014.
Mr Matt Lehtinen told the Grand Rapids group that the proposed pellet plant has USD 200 million in equity funding already secured and will be an approximately USD 350 million investment. The projected start up is in the second quarter of 2014. Magnetation expects to have 500 total employees by that time.
Mr Lisak said he keeps in contact with Magnetation officials each week but got no hints on the odds of the company choosing Superior. He added that "We are happy we are still in the game."
Magnetation's first plant is outside of Keewatin and has been expanded several times. A second plant is near Taconite and started production in May 2012. A third plant is expected to go online near Chisholm later this year.
Source - Associated Press
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