Cleveland Cliffs: "Mmm ... coal"

According to today's Duluth News-Tribune, one of the Iron Range's well-known eastern iron mining overlords, Cleveland Cliffs, is merging with Appalachian coal mining company Alpha Natural Resources. The new company will be called Cliffs Natural Resources, becoming one of the nation's largest mining companies.

It might not be a bad idea to buy this new stock, because iron and coal prices are both rising at alarming rates. Also, buy a wind turbine and start digging a geothermal heating system because you won't be able to afford electricity soon.

Perhaps I'm getting ahead of myself. Anyway, this will affect the future of the Iron Range in some yet unknown way. I'm open to theories.

PS: I'm investigating a rumor that this new company might merge with Heinz Ketchup and become ThingsThatStainYourPants Co.

Cliffs now sole owner of Eveleth mine facility

Consolidation continues in Iron Range mine ownership. The Duluth News-Tribune reports that Cleveland Cliffs is now the sole owner of United Taconite near Eveleth (formerly EvTac). This is the iron mine and processing plant combo that reopened after a deal with the Chinese government a few years ago.

Cliffs hires away Hibbing PUC utilities chief to run biomass; a flash of what's to come?

Today's Hibbing Daily Tribune reports that Hibbing Public Utilities general manager Jim Kochevar is taking a job with Cleveland-Cliffs to oversee that company's energy operations in Michigan. Kochevar was one of the leaders who developed the Laurentian Energy Authority, a biomass power generation project shared by the cities of Hibbing and Virginia. Cleveland-Cliffs recently announced plans to develop biomass power plants to provide electricity for its some of its mining operations. They're starting in Michigan, but I expect that if that works they'll be building similar plants in or around their Minnesota operations.

As a newspaper reporter, editor and radio host in Hibbing, I interviewed Jim Kochevar many times. My impression has always been that he's a straight-shooter who deals fairly with the public and press. I hope that his activity with Cliffs leads to the continued development of a market for our area wood products as part of a clean renewable energy strategy.

Picture the not-so-distant future of the Iron Range. Large mining and steel operations, cities and other large electricity customers each have their own biomass plants burning homegrown wood products from nearby forests. Additional power needs are met ably by existing Minnesota Power plants and hydroelectric power from Manitoba. When you factor in environmental upgrades at Minnesota Power's plants, we could see a major economic boom all the time while holding down the amount of carbon emissions in northern Minnesota.

At some point, probably in my lifetime, the Iron Range and northern Minnesota will receive a lot of attention for our vast supply of forests, fresh water and iron ore products. These are all things that will become more important if current climate, population and economic trends continue on their current paths. It'd be great if our region was ready, wide-eyed and sharp-witted about the challenges that will come with these changes.

Stay tuned.

Cliffs looks to another good year

WDIO reported last night (sorry, no direct link available) that Cleveland Cliffs is anticipating a return to pre-2001 production levels at its Minnesota taconite operations, including HibTac and UTac, in the near future. The company is also considering building a biomass power plant to cover some of the power needs for this revived taconite production. The fuel used would be primarily some kind of wood pulp also grown and processed in northern Minnesota.

Isn't it interesting that these big companies are predicting growth on the Iron Range and yet acknowledge that new coal-fired electricity probably won't be an logistically or financially feasible option? I think that's interesting. Kind of makes you wonder about certain boondoggle energy projects doomed to fail but that enjoy widespread political support. Kind of makes you want it to go away, like the guy you invited to the party because you thought he was cool but who drank all the beer in the first two hours and is starting to creep out the girls.

Anyway, I digress. In the midst of all the potential of big ticket new projects, let's not forget that U.S. Steel, Cleveland-Cliffs and their power broker, Minnesota Power, are all having damn fine years and will have a license to print money next year, too.

Another 'new' mine in Iron Country

Steel Dynamics and Cleveland-Cliffs closed a land deal that will allow the Steel Dynamics iron nugget plant to begin construction on the East Range in the vicinity of the former LTV taconite plant. LTV's demise in 2001 kicked off a mini-panic on the Iron Range that included other taconite plant shutdowns or closures and paved the way for harebrained ideas like the Excelsior Energy Mesaba Energy Project. Now market forces and steel prices have expedited the iron nugget plant and Nashwauk's Minnesota Steel project, now owned by India's Essar Global. If we had spent our money differently in the early 2000s, Iron Range Resources and others would have funding for any number of the now crucial infrastructure projects we need to build for our soon-to-grow communities.

True blessings go to those who keep their heads during the bad times and keep their values during the good times. I suppose the same could be said for geographic regions. Here's hoping that we're learning something along the way.

Land deal clears way for new iron ore mine in Iron Range
Lee Bloomquist
Duluth News Tribune - 12/04/2007

Steel Dynamics and Cleveland-Cliffs announced a land deal Monday that would lead to the opening of a new mine to provide raw material for the world’s first commercial iron nugget plant. The mine and plant together would employ about 200 to 300 workers, compared with 50 for the nugget plant alone, said Steel Dynamics chairman and CEO Keith Busse.

The Mesabi Nugget plant is planned for the former LTV Steel Mining Co. site near Aurora and Hoyt Lakes.

“This is excellent news,” Hoyt Lakes Mayor Marlene Pospeck said. “Everything is moving ahead, very much so. I’m very impressed with the progress that’s being made in construction in the first phase of the project.”

Under the $18 million deal, Steel Dynamics Inc. will acquire about 6,000 acres at the former LTV Steel Mining Co. site and assume some environmental and reclamation liabilities that had been Cleveland-Cliffs’ responsibility.

It also will acquire mineral rights to about 133 million tons of iron ore reserves beneath the ground at the former taconite plant, according to Pete Clevenstine, state Department of Natural Resources Lands and Minerals manager of engineering and mineral development.

Steel Dynamics officials in September said there are enough iron ore reserves at the site to operate four iron nugget modules for 100 years.