A new University of Minnesota-Duluth study indicates that mining remains the immovable foundation of the current Iron Range (indeed, northeastern Minnesota) economy.
In all, mining activities account for 34 percent of the Northland’s gross regional product, said Jim Skurla, the study’s author and acting director of UMD’s Bureau of Business and Economic Research.
“How important is mining to northeast Minnesota?” asked Skurla, pointing to a pie chart that depicted mining’s one-third contribution to gross regional product. “Here’s your answer: It’s very important.”
Our challenge: Responsibly maintaining the practice of mining as long as possible while growing the economy outside the mining sector. If we haven’t figured it out yet, this study demonstrates the exact definition of “all your eggs in one basket.” The Duluth News Tribune and Mesabi Daily News both explore the study which was revealed at the annual meeting of the Society for Mining Metallurgy and Exploration in Duluth. It bears mentioning that the study was funded by many groups and companies, such as Minnesota Power, that rely on mine business … but these findings nevertheless remain plausible and worthy of note.
As a 51-year member of the Society of Mining Engineers, I was present at the meeting in the DECC on Wednesday and heard Jim Skurla present the economic outlook for NE Minnesota. In fact, after he laid out the important Mining, Forests, and Tourism segments, I asked a question from the floor:
What about the largest slice of the pie chart, 43 per cent, the segment called… OTHER?
Did OTHER include Health Care, Education, and Government? (At least two of the priorities in Obama’s recovery program.) “Yes, OTHER does include those,” Jim answered. But there were no further details.
-KAXE’s Golden Gopher