Subscription Services

 

print article Print     e-mail article E-mail
Published December 14, 2012, 12:00 AM

IRRRB approves rebates for taconite plants

The Iron Range Resources and Rehabilitation Board on Thursday approved more than $9 million in taconite tax rebates to mining companies as part of a longstanding program to encourage reinvestment and improvements.

By: John Myers, Duluth News Tribune

More...

The Iron Range Resources and Rehabilitation Board on Thursday approved more than $9 million in taconite tax rebates to mining companies as part of a longstanding program to encourage reinvestment and improvements.

The program will give back nearly 15 cents per ton of taconite produced for projects that contribute to the long-term development of taconite operations — and long-term stable employment — if the company also invests its own money.

This year’s rebates will pay for part of an estimated $21 million in upgrades at six mining operations.

On Thursday the board approved:

  • $3.3 million for U.S. Steel’s Minntac plant as part of more than $5 million in upgrades to the Mountain Iron facility, much of it to improve wireless communications to meet federal regulations.

  • $1.6 million for Cliffs Natural Resource’s United Taconite for “finishers and roll screens” at its plant in Forbes, part of a $2.2 million project that will help maintain uniform pellet size.

  • $1.5 million for Cliffs Natural Resource’s NorthShore Mining operations, part of a $7 million project to upgrade the plant to handle the harder ore deposits now being mined at its pit near Babbitt.

  • $1.5 million to Hibbing Taconite, part of a $1.95 million project to help reduce the silica content of its concentrate.

  • $775,000 for Arcelor Mittal, part of a $2.5 million project to refurbish a compressed-air system at the Minorca operations near Virginia.

    The board also approved a rebate for upstart Magnetation, which produces iron concentrate recovered from waste dumps at long-idled natural ore-mining operations. Magnetation gets about $43,000 for a “ball mill addition” to its Keewatin production plant. The total project is estimated at $2.5 million.

    U.S. Steel’s Keewatin Taconite plant received $1.1 million in rebates for more than $3 million in upgrades at the IRRRB’s October meeting.

    The rebates awarded this year are based on taxes paid for 2011 production.

    Taconite producing companies will pay nearly $2.47 for each of the 39.2 million tons produced this year, giving the state and local governments a whopping $96.6 million in production taxes paid in lieu of property taxes. That per-ton tax will go up about 4 cents per ton in 2013 if lawmakers don’t act to freeze it.

    Despite some signs of trouble in 2013, including a shutdown and layoffs at part of NorthShore Mining’s operations, Minnesota’s taconite plants are on pace to produce slightly more of the concentrated iron ore in 2012 than they did the year before. The 39.2 million tons estimated for this year is up a bit from 39 million, according to the Minnesota Department of Revenue, and the highest production since 2005. Forecasts call for stable production in 2013, except at NorthShore.

    Film rebate, civic projects approved

    In other action Thursday, the IRRRB board approved allocating up to $800,000 for rebates for expenses incurred by crews shooting feature films on the Iron Range. It’s hoped the incentive will encourage producers of two movies to shoot on the Range in 2013.

    The board also approved more than $7 million in grants to local towns, cities and other civic projects across the Taconite Tax Relief Area, also a portion of taconite taxes paid by mining companies.

    Tags: , , , , 

    More from around the web