Gov. Tim Pawlenty's $1.09 billion bonding proposal released today includes $30 million for a proposed Iron Range steel mill near Nashwauk.
The $30 million would help develop infrastructure for Minnesota Steel's proposed $1.6 billion taconite, direct reduced iron, and steel mill.
However, the $30 million is less than half of the $67 million requested by Itasca County for the project.
DFL lawmakers from the region say that Pawlenty's earmark is a start.
"At least he didn't shut us out completely,'' said Sen. Tom Saxhaug, DFL-Grand Rapids. "The good news is that we're included. The bad news is that we have to go get more money.''
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The 2.5-million-ton-per-year steel mill would be the first of its kind, producing taconite, reduce iron and steel slabs at a single site.
If built, it would be the largest industrial project in the state, requiring 2,000 construction work-ers and 700 permanent employees.
Essar Steel, an Indian steelmarker, last year bought control of the project from Minnesota Steel, a group head by the Longyear and Bennett families of Iron Range mining fame.
Rep. Tom Anzelc, DFL-Balsam Township, said today that Pawlenty's inclusion of the project is the beginning of further discussions.
"It's to be negotiated,'' said Anzelc. "It does not appear to do the job, but it's the first step in a complicated negotiation process. "It's likely that once we get a sit-down with the people of Essar, perhaps some of this will clarify.''
