Paper: Range mines won’t benefit much from stimulus package

The Duluth News Tribune published a Peter Passi story today quoting industry analysts saying that the economic stimulus package being negotiated in Washington does not stand to benefit the Iron Range much. That is, unless the demand for durable goods like cars and washing machines improves. This comes in contrast to the MinnPost story I linked late last week. Iron Range taconite pellets feed blast furnaces, which produce high grade flat rolled steel. Highways use rebar made from electric arc finances that feed off pig iron. The Iron Range doesn’t produce this kind of steel product, at least until the Essar Minnesota project near Nashwauk is up and running. That project, however, will not be operational until long after the stimulus package is complete.

I’d argue that anything that might reinvigorate the steel industry stands to benefit the Range. And if the economy picks up demand for durable steel goods will probably improve too. I’ll follow the adage that higher waters float all boats.

Check out the story.

Meantime, the Mesabi Daily News has a front page feature on the forward progress of Iron Range development projects like the Essar plant, PolyMet and Mesabi Nugget.

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