U.S. Steel’s MinnTac facility is the largest active iron ore operation in the United States, and “king” of the Iron Range mines of Northern Minnesota. (PHOTO: U.S. Steel)
The Associated Press reports that after a unanimous vote of the state executive council yesterday, Minnesota will reduce the royalties owed by U.S. Steel from 91 cents to 75 cents per ton for iron ore mined from state land. Those royalties pay into funds that support schools and universities in Minnesota.
This was the result of a direct request by U.S. Steel, which has been blunt about its need to significantly reduce costs at its Iron Range mines to remain in business. Keewatin Taconite and MinnTac are both entering partial shutdowns beginning this summer that have no clear end dates.
Across the world, the price of iron had fallen dramatically, and while it has crept back up lately a glut of new iron ore supply from other countries has altered the industry’s outlook. We’ve been reporting on these matters at great length, and expect to continue.
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