Minnesota Iron Ore Sustainable Supply

Transcription

1 Minnesota Iron Ore Sustainable Supply by Jim Sellner, PE, PG Manager of Engineering & Development Division of Lands & Minerals Department of Natural Resources Laurentian Vision Partnership, Iron Range Resources Rehabilitation, Iron Board Chisholm, MN January 28, 2015

2 Division of Lands and Minerals Promoting and Regulating Mining in Minnesota

3 Topics Mineral revenue and leasing Iron Ore & Manganese on the Cuyuna Range There are 2 basic industries: Agriculture & Mining everything else is value added John Engesser, P.E. Chemical Engineer Former Assistant Director Lands & Minerals Hibbing 3

4 Minnesota State Statute Policy for promoting Mineral Development It is the policy of the state to provide for the diversification of the state s mineral economy through long-term support of mineral exploration, evaluation, environmental research, development, production, and commercialization. Minnesota State Statute127A.31 Goal of the permanent School Fund. The DNR Administers 8.5 million acres of land of which 2.5 million is School Trust. The legislature intends that it is the goal of the permanent school fund to secure the maximum long-term economic return from the school trust lands consistent with the fiduciary responsibilities imposed by the trust relationship established in the Minnesota Constitution, with sound natural resource conservation and management principles, and with other specific policy provided in state law. Minnesota State Constitution Article 11 The permanent school fund of the state consists of (a) the proceeds of lands granted by the United States for the use of schools within each township, No portion of these lands shall be sold otherwise than at public sale, and in the manner provided by law. All funds arising from the sale or other disposition of the lands, or income accruing in any way, shall be credited to the permanent school fund. Within limitations prescribed by law, the fund shall be invested to secure the maximum return consistent with the maintenance of the perpetuity of the fund. The net interest and dividends arising from the fund shall be distributed to the different school districts of the state in a manner prescribed by law.

5 Types of State Administered Mineral Lands School Trust Fund University Trust Fund County Tax Forfeit Consolidated Conservation (Con Con) Acquired Volstead

6 Types of State Minerals Leased Taconite/Iron ore Residue iron ore (stockpiles & tailing basins) Non ferrous minerals (copper, nickel, zinc, gold, cobalt, titanium, platinum, palladium) Industrial minerals (Dimension Stone) Peat Miscellaneous lease (waste rock stockpiles)

7 Number of State Mineral Leases Residue Industrial Peat Other Metallic Iron Ore

8 Minnesota Mineral Leases

9 USA Metal Consumption Steel Aluminum Copper Lead Titanium Zinc Manganese Chromium Nickel Magnesium Other

10 World Iron Ore Production Sinter Feed Pellets Source: USGS Annual Iron Ore Commodity Summary.

11 USA and Canada Iron Ore Production Sinter Feed Pellets Source: USGS Annual Iron Ore Commodity Summary.

12 Long tons (Millions) Mesabi Range Taconite/Iron Ore Production Current mining industry impact on MN economy is about $4 billion annually Mine Employees , ,267 Current 3,900 Why the drop? 1) Underground to Open Pit 2) Rail haul to truck haul 3) Equipment became larger 4) 35 ton trucks to 350 ton trucks 5) Technology (computer control) 6) Resource curse????? Avg. production 37,400,000 Iron Ore Taconite Minnesota produces 80% of US Iron Ore Year 12

13 State Mineral Revenue Mineral Management Cost for FY2012 = $2,896,000 proportionally taken from the various revenue land types 60 Total Mineral Revenue for the past 10 years ( ) = $251,777,375 Total School Trust Mineral revenue for the past 10 years ( ) = $154,657, Total mineral revenue = $261,005,904 School Trust mineral revenue = $170,054, % revenue from iron ore & taconite, 2.3% revenue nonferrous mineral leases Other 30 Tax Forfeit University School

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15 Cuyuna Range Gov t land surveyors report strong magnetic variations Test Pits sunk by Henry Pajari First drilling by Cuyler Adams. Iron ore discovered in Completion of MPLS, St. Paul & Sault Ste. Marie rail line to Cuyuna First iron ore shipment from Kennedy Mine 147,649 tons Largest annual iron ore shipment 3,714,684 tons Last iron ore shipment from Algoma Zeno Mine 60,730 tons Total iron ore shipped from Cuyuna 106,437,863 tons USBM conducted lab experiments on insitu extraction of manganese to present: Cuyuna Country Recreation Area created by Legislature and operated by MN Parks & Trails Hydraulic fracturing solution mining proposed for manganese ores near Emily, MN (far north portion of the North Cuyuna Range district). 15

16 Manganese Potential 16

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21 Cuyuna Range Mining Companies 45 mines were once active on the Cuyuna North & South Range. Major players: Hanna Inland Steel Pickands Mather Evergreens Mines Pittsburgh Pacific Zontelli Bros. 21

22 Cuyuna Range Resources Unmined Iron Ore Resources direct shipping and concentrates. Unmined Iron Ore/Manganese Resources direct shipping and concentrates. Stockpiles & Tailings Basins containing iron ore and manganiferrous iron ores. 6-9 lbs. of manganese is added to every ton of steel. All ferro-manganese is imported into the U.S. (Africa & South America). Approximately 650, ,000 LT s of ferro-manganese is used by the domestic steel industry, annually. The Cuyuna Range contains the largest identified manganese resources in North America. The DOD recognizes this resource in it s strategic reserve of critical metals. MNDNR is authorized to issue temporary use permits for sampling & leases for residual mining (scram) and traditional iron mining on state administered mineral lands. 22

23 Cuyuna, MN 23

24 Minnesota Iron Miners 24

25 Portsmouth 25

26 Hanna 26

27 Kennedy 27

28 Mangan #1 28

29 Kennedy Head-frame (1959) 29

30 Kennedy 30

31 Croft 31

32 Bonnie Belle 1918 (1 st Ore car) 32

33 Armour #2 (1917) 33

34 Evergreen

35 On the job (1925) 35

36 Feigh 36

37 Pennington (1915) 37

38 Ferro 38

39 Mahnomen

40 Louise (1959) 40

41 Cuyuna-Duluth 41

42 Ironton

43 Ironton

44 Ironton

45 Ironton

46 Ironton

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48 Ironton School

49 Ironton Miners 49

50 Ironton City Hall/Fire Dept

51 Thank You 51