APG Specialty Publications 00_IRON_MINING_ASSN_19_BOOK_NEW | Page 15

MINNESOTA IRON MINING
Minnesota Department of Natural Resources
Division of Lands and Minerals
Ely
Mesabi Range Mining Operations
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Duluth
Brainard
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Mpls
St. Paul
Duluth
MINNESOTA IRON MINING-OUR COMMUNITIES,
STATE AND NATION DEPEND ON IT.
Use of iron ore dates back more than 5,000
years, and as needs for iron have grown, iron
ore deposits have been found all over the
world. Minnesota has the largest deposits of
iron ore in the United States, and northern
Minnesota has been mining iron ore for 130
years (26 years after Minnesota became a
state in 1858).
The Iron Mining Association of Minnesota
(IMA) was founded in 1992 to promote an
iron ore industry that will provide long-term
growth and prosperity for all stakeholders
through profitability in a competitive, global
market.
In addition to vendor members like you,
the IMA represents the eight iron ore mines
in northeast Minnesota that are capable of
producing over 40 million tons of taconite
annually from Minnesota’s iron ore deposits.
The companies that operate the mines
include ArcelorMittal, Cleveland-Cliffs Inc.,
Steel Dynamics, and U.S. Steel.
During normal economic conditions,
Minnesota's iron mines directly contribute
$1.9 billion to the economy of Minnesota
every year in the form of purchases,
wages and benefits, taxes, and royalties.
Subsequent business impact induced as
the result of iron mining is responsible for
more than an additional $1.1 billion—making
the total economic impact $3.0 billion on
the state and region’s economy. The mines
directly employ approximately 4,000 men
and women, with more than 11,000 others
employed by vendors.
Part of the direct impact to the economy
includes taxes and royalties paid by the
iron mining industry. Taxes payable in 2012
equaled $107.4 million. Distribution of
those taxes included $49.1 million towards
Minnesota’s education – $36.6 million to K-12
and $12.5 million to the University Trust Fund.
This effect on the economy is expected to
increase with upgrades to existing mines and
the addition of new iron mining initiatives.
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