The Iron Range Resources Board met Thursday on a variety of topics, summarized here in a post by Lee Bloomquist at the agency’s blog Rangeviews. News stacking is always a judgment issue, so I’ll note that the non-agency WDIO TV (Duluth’s ABC affiliate) led its 6 p.m. Thursday news with Minorca Mine announcing it had no plans to lay off any workers in 2009, contrary to the decisions made by larger Iron Range mining operations. U.S. Steel recently announced an indefinite idling at Keewatin Taconite while Cleveland Cliffs is considering layoffs at its Iron Range properties in Hibbing, Eveleth and Silver Bay. Minorca is a smaller operation, but its announcement might be an indication that there is a bottom to the sinking steel market right now. That’s good news for the Iron Range.
In the Rangeviews post, the top story was the effort to use biomass-produced energy at some Iron Range schools, also good news and an exciting reminder that being a natural resources-based economy might have its advantages in the future.
However, the story that had the most buzz going into the meeting was only casually mentioned in Lee’s account and not at all in WDIO’s. Essar Steel was granted a one-year forbearance on about $6 million it owes the agency. Note how the lenghth of the extension was reduced from four years to a much more reasonable one year. I’m told a tough discussion broke out when Tom Anzelc (my friend and political colleague, for conflict of interest’s sake) mentioned that this loan extension was different than the one granted Excelsior Energy last month. Essar is an established company with permits and ground operations in place, whereas Excelsior is still theoretical and plagued with logistical and business problems. Despite this, the two projects have often been mentioned in the same breath these last few years and have both been granted ample public funding. That seems to be a sore spot in the Iron Range economic development class and will continue to play out these next couple years.
In truth, the bad economy might set both projects back in 2009. I contend that Essar might have a chance of recovering while Excelsior remains a mirage. I’ll update if I see any local media coverage of the meeting on Friday.
UPDATE: The Mesabi Daily News covered the Essar loan angle. For those playing at home, see if you can determine slant. It’s actually kind of comical today.
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