$50 million dedicated to Mesabi Nugget plan

$50 million dedicated to Mesabi Nugget plan

Cleveland Cliffs Inc. has allotted $50 million to the proposed Mesabi Nugget plant for the Iron Range. Cliffs’ chief executive John Brizno made it clear in the company announcement Tuesday that northeastern Minnesota is the desired location for the plant. "We are optimistic about the future potential for this nugget technology. Today's action by the board reaffirms Cliffs' commitment to Minnesota's Iron Range and to moving this project forward," Mr. Brizno stated Tuesday. The $50 million will be used as capital to fund the project, which aims to put a halt on excessive pollution by using new technology and a specialty process to produce 95 percent pure iron nuggets. The total project cost is $175 million, with Cliffs, Kobe Steel, and Steel Dynamics of Indiana as the biggest contributors. Both Minnesota and Indiana vied fiercely for the plant, which would be the first to operate with this cutting edge technology. $36 million was offered to the project from Minnesota. Larry Lehtinen, president of Mesabi Nugget, stated that the facility’s construction would create nearly 500 jobs over a two-year period. Once completed and fully operational, the plant would provide 50 permanent jobs, as well as another 50 jobs in supportive outfits. The proposed building site is in Hoyt Lakes at the former LTV Steel site.