UM-Duluth’s Labovitz School of Business has a new study out today projecting the possible economic impact of new mining projects in northern Minnesota. It paints quite a picture of the region’s mining economy. This is from the press releases (emphasis mine):
Duluth, Minn., Feb. 6, 2013 – A recent report outlining Minnesota’s mining industry found that in 2010, the combined economic impact of iron ore mining and non-ferrous minerals development was more than $3.2 billion statewide. That impact has the potential to more than double with the expansion of mining, supporting more than 27,000 jobs in Minnesota and producing $7.7 billion for the state’s economy if all projects currently under consideration move forward. The report was developed by the University of Minnesota Duluth (UMD) Labovitz School of Business and Economics as they studied the mining industry’s strong economic impact on the state as well as the significant opportunities for growth.
According to the report, proposed expansions to existing iron mines and new mining projects under consideration, both iron and non-ferrous, would support an additional 15,500 Minnesota workers and contribute an additional $4.5 billion to the state’s economy if all move forward. These numbers reflect annual operations only and do not include the jobs or economic impact of construction of new facilities.
If expansions of existing mining operations and development of projects currently under consideration take place, there will be a significant boost to the economy from construction as well. Construction of proposed expansions and new projects, modeled over a period from 2012 through 2016, have the potential to contribute an additional economic impact of nearly $5.3 billion to the state’s economy and to create an average of 2,423 jobs a year for five years. The report predicted that employment could range from 1,964 in 2012 to a peak of 3,190 in 2016.
2016. At least the standard “wait five years” local economic development maxim has been reduced to three and a half. That’s progress and, well, that’s measurable. Here’s the study. Let’s see! You all know what I think about all this.