Bankrupt Magnetation is officially under new ownership.
State of Virginia-based ERP Iron Ore finalized a purchase agreement of Magnetation according to ongoing bankruptcy proceedings. WDIO reported the story earlier today.
Magnetation, based in Grand Rapids, Minnesota, is a scram mining and iron ore processing company. The company recycles iron ore from waste piles in Northern Minnesota and processes them at a pellet plant in Reynolds, Indiana.
As I wrote late last December, ERP is a new company, but is the subsidiary of a larger mining company run by Virginia businessman Tom Clarke. Clarke’s nonprofit Virginia Conservation Fund has overseen the takeover of struggling coal mines and turned them around. The company then dedicates profits to environmental projects.
An operation like that would certainly be a first on Minnesota’s Mesabi Iron Range.
The purchase agreement includes a provision that will allow ERP to pay back the contractors still owed money after the Magnetation bankruptcy.
According to WDIO, Clarke plans to announce details about reopening Magnetation later this month.