Multi-Million Dollar Iron Range Mine Expansion Called Off
Wednesday, September 17, 2014
By:
Julia Russell
Photojournalist:
Adam Jagunich
FOX 21 News, KQDS-DT
Regions:
- Iron Range
Topics:
- Community
- Mining
http://www.fox21online.com/sites/default/files/keetac%20pkg.mp4
KEEWATIN - Plans for a multi-million dollar mining expansion in Keewatin are over and out."It would have been huge for our community with new jobs and things like that," said Mayor and long-time Keewatin resident, Bill King.
It was supposed to be the biggest mining project in 30 years adding hundreds of jobs and a glimmer of hope to the Iron Range.
The plan to reopen an old pellet line which closed in the 1980’s at U.S. Steel’s Keetac mine have been called off.
Back in 2008 when the town of heard of the $300 million expansion happening to Keetac they were thrilled.
After an extended permit process the company decided not to go on with the project and all permits required for the project will expire this month.
"The longer time goes you just kind of expect maybe it's not going to happen," King said after waiting six years for the project to come to fruition.
It's been more than a year since he’s heard anything about the mine expansion that was supposed to take place in his hometown, and he predicted the news of cancelling the project would eventually happen.
"It would have meant 100 new jobs, a lot more production, more tax revenue, a lot of things," King sighed.
The expansion would have increased Keetac’s production by 3.6 million tons bringing total production to 9.6 million tons of iron ore pellets a year.
According to a report from U.S. Steel, they've decided to axe the expansion because the mine's ‘current production capability is sufficient.’
It's a story retired miner Jim Wydra has heard one too many times."They decided that they could do the same with less people,” Wydra said. "It is what it is and if it happens it happens and we’ll live with it."
The mayor says on the bright side at least the mine isn't losing any jobs."Production will remain the same,” he said. “So that means the people that are working will stay working and that's big.”
Fox 21 reached out to officials with U.S. Steel and locally at Keetac, but both parties refused to comment on the project falling out.
"Would have been huge for our community, but we'll move on," King smiled.