SAINT PAUL, Minn. – Today, Iron Range legislators urged Governor Tim Walz to take action aimed at improving prospects of mining activity at the former Essar Steel site in Nashwauk. Specifically, the legislators urged Governor Walz to direct the Department of Natural Resources (DNR) to pull-back the mineral leases from the current operator at the site – Mesabi Metallics – a move legally authorized following the company’s failure to complete construction of the facility by the December 31, 2019 deadline.
“For Iron Rangers, disappointed repeatedly by false starts and empty promises, swift and decisive action on your part would address a long-overdue step toward building a prosperous future for this region,” wrote Rep. Julie Sandstede (DFL – Hibbing) in a letter to the governor. “Once the leases are pulled back they need to be awarded to a company with sound financial standing, a track record of credible investments in our region, and integrity and commitment to our shared success. These criteria narrow the pool in such a way that only a few, if not one company, would emerge as the logical recipient. The current operators, with their numerous missed deadlines and breached agreements, have exhibited none of these qualities, and at this stage, the state owes them nothing.”
Mesabi Metallics has missed several construction and tax deadlines. First proposed in 2008, the former failed operator of the future mine and taconite plant – Essar Steel Minnesota – filed for bankruptcy in 2016. The company emerged from bankruptcy in 2017 with new ownership: Chippewa Capital Partners. Essar Global has since, however, worked its way back into the ownership fold following litigation regarding ownership and management disputes, much to the chagrin of many Iron Rangers ready for a proven, credible operator to take over the site.
Since then, the DNR has sought to debar Essar Global from operating in the state of Minnesota.
The full letter can be accessed here.