The company that promised to bring a first–of–its–kind, combination steelmaking facility and taconite production plant on the Iron Range may be dropping the steelmaking part of their plans, to the dismay of some lawmakers. The project has been publicly subsidized over the past eight years to the tune of $67 million in state funds, and $6 million in taconite tax money to deliver its promise of both facilities. But according to State Representative Tom Anzelc, who chairs the Iron Range Delegation of Legislators, it became clear after a meeting with Essar Steel on December 19th that they werent going forward with the steel plant aspect. On top of that, the company asked for a seven–year extension to pay back the $67 million loan that was supposed to be paid back next October. Representative Anzelc says its a troublesome request, especially because Essar still plans to keep the proposed taconite plant alive. That, says Anzelc, would be adding another taconite company competing for global customers in a struggling market. ...which will be competing in a world market where taconite prices per ton have plummeted in recent months, said Rep. Anzelc over the phone on Monday, and it looks as though 2015 and 2016 are going to be very difficult years for profit margins in the existing iron, taconite, and steel industries. Anzelc says, upon last check, the price per long ton of taconite was at $70 dollars. Last year, the price was around $180 dollars per ton. Anzelc says he expects to see a 24–month contraction in the global taconite market, and competition, regardless of Essars plans. The company couldnt be reached for comment by news time. Billy Wagness bwagness@kbjr
Posted on: Tue, 30 Dec 2014 23:26:21 +0000
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