17 April 2009Mining grows in importance to regional economy
A University of Minnesota Labovitz School of Business and Economics Bureau of Business and Economic Research study released April 15, 2009, finds that Minnesota’s mining industry is the single largest contributor to northeastern Minnesota’s economy.
Mining during the study year of 2007 accounted for 34 percent of the gross regional product, up from 23 percent in 2001, according to the report. During 2007, mining pumped $3.1 billion into the state economy and supported more than 10,000 jobs.
Six taconite plants operate in northeastern Minnesota. The plants produce iron ore pellets which are turned into steel at domestic steel mills to manufacture everything from paper clips to ships.
Current mining operations in 2008 paid more than $148 million in state and local taxes and royalties, of which $46 million supported local schools and the University of Minnesota.
In addition to iron ore production, several copper, nickel and precious metals projects are in various stages of development. Those facilities would produce the metals needed to build wind turbines, cell phones, computers and hybrid cars.
Including all ferrous, non-ferrous and expansion mining projects being built or planned, the statewide economic impact of mining would grow to $8.7 billion by 2013 and support more than 20,000 jobs, according to the report.
The report was unveiled at the annual Society for Mining Metallurgy and Exploration, Inc. conference at the Duluth Entertainment Convention Center.
Iron Range Resources, the Minnesota Department of Employment and Economic Development, Minnesota Power, Natural Resources Research Institute, Iron Mining Association of Minnesota and MiningMinnesota, funded the report.
You can read the full report at: http://www.ironrangeresources.org/about/reports-publications