Why is this goal important?
Assisting the region’s mining industry to meet capacity and growth needs is an integral part of our agency’s economic strategy. Our long view recognizes that the taconite industry is cyclical in nature so diversification into areas such as nonferrous mining, renewable energy, manufacturing and customer service are essential to long-term stability and growth.

Iron Range Resources also plays a leadership role creating a vision for sustainable growth and change within the region. With ties to communities as well as business and industry, Iron Range Resources is the primary government convener that engages stakeholders in situational assessments, issue discussions and strategic thinking. Building consensus around strategies for the future is the first step in choosing a course for change.

What is Iron Range Resources doing to achieve this goal?
        Deploying financial and human resources to support business efforts that retain     
           existing jobs, create new jobs and provide jobs within a variety of industries

        Launching a new business image and marketing campaign

       Promoting new technology and next generation resources 

        Involving stakeholders to develop sustainable facilities at Giants Ridge_® and Ironworld

What is the department’s progress to date?
Deploying Resources to Support Businesses in Job Creation

Business Image and Marketing
“Business is Beautiful” – Iron Range Resources new brand and image campaign was launched in September 2006. A full advertising and print program supports this marketing initiative which was designed to communicate a consistent agency message that increases brand and image recognition.   

New Technology and Next Generation Resources
The Laurentian Energy Authority (LEA), a joint powers public authority formed between the municipal utilities of Virginia and Hibbing, put two combined heat and power renewable energy biomass plants on line during the winter of 2007.

The project is anticipated to generate over $704 million in revenue over 20 years, with $20 million spent annually in labor, fuel and materials. Up to 70 jobs are expected to be retained, with a possible 100-plus new jobs in the wood yard, transportation and tree growth aspects of the operation.

The LEA biomass energy project, funded in part by Iron Range Resources, preserves public utilities, creates new jobs, reduces reliance on fossil fuels, improves environmental impacts, and provides a framework for biomass research opportunities in northern Minnesota.

Other next generation resource projects are in various stages of development and showing strong potential. They include the Mountain Iron Pellet Plant, Minnesota Power Wind, Excelsior Energy, Coal Gasification, Bois Forte Cellulosic Ethanol, and the Mountain Iron Community Based Energy Development (CBED) Wind Power Project.          Biomass Facility at the Department of Public Utilities, Virginia, MN                
Stakeholder Involvement
Ironworld Discovery Center - In January 2007, the nonprofit Ironworld Development Corporation signed a sublease/management agreement with Iron Range Resources and assumed control of Ironworld. Iron Range Resources maintains ownership of the facility and collections and the nonprofit is charged with fulfilling the organization’s mission through preservation, education and related activities. The nonprofit is also responsible for fundraising to meet its annual operating needs. A ten-year declining subsidy, interest from an endowment and a challenge grant for endowment fundraising are part of Iron Range Resource’s financial support to ensure IDC’s successful future.

Giants Ridge_® Golf and Ski Resort - In March 2007, Giants Ridge resort stakeholders unveiled a 10-year master plan for the Giants Ridge recreation area, which holds the potential of unprecedented residential and commercial growth for the eastern end of the Mesabi Range. The master plan contemplates investments approaching one billion dollars over the next decade. Annual economic impact to surrounding communities could exceed $50 million by 2010, and upon full build out, annual tax revenues to local governments could exceed $10 million.

The Giants Ridge Recreation Area is comprised of 10,000 acres of land owned by both public and private parties. Iron Range Resources owns over 1,600 acres and the master plan is driven by the agency selling land parcels to private entities that in turn, generate future development. 

The Master Plan is the result of months of discussion among all of the Giants Ridge resort stakeholders and represents a multi-business collaboration among numerous public and private entities. Giants Ridge also transformed its Master Association into a governing entity and participating association members represent all resort stakeholders, both residential and commercial. The member’s role in the Master Association is to participate in collective decision making about Giant Ridge’s future.   
 

Why is this goal important?
The economy of the region is primarily natural resource-based, dominated by the taconite mining and forest products industries.  However, as market factors and the introduction of new technology contribute to a decreased level of employment in these core industries (and related businesses), the region is making progress in diversification. Iron Range Resources has assisted in the start-up and expansions of light-to-medium manufacturing and high-level customer service centers, businesses that are important to the long-term vitality of the economy.

What is Iron Range Resources doing to achieve this goal?
        Financing the expansion of companies that export goods or services from the region

        Providing grants assistance to local governments, nonprofits and eligible businesses in
           the tourism, public services, health care and other sectors

        Working with the existing taconite producers and forest products companies to sustain
           and increase levels of production and employment
 

What is the department’s progress to date?

Expansion of Area Companies
Iron Range Resources provided debt capital and other financial incentives for 36 business expansions since FY2004, for a total of $18.2 million in assistance.  These projects leveraged $97.2 million dollars and resulted in 2,059 jobs retained and 644 projected new jobs.

Grants Assistance

Iron Range Resources made 45 discretionary grants to communities, nonprofits, higher education and businesses totaling just under $3.5 million. Grants supported infrastructure that addressed barriers to business growth, research and development for new initiatives, and tourism.

Forest Products and Mining

Iron Range Resources participated in task forces and action teams to address forest industry issues, including:
 

       The Governor’s Task Force on the Competitiveness of Minnesota’s Primary Forest      Products Industry, Co-chaired by Commissioner Layman and the Commissioner of the Minnesota Department of Natural Resources. 

       Northeastern Minnesota Forest Industry Action Team –identifying growth opportunities within the region’s forest products industry.

The agency also established a Forest Industry Assistance Program following difficulties in the national housing industry that impacted area loggers and board mill production. The assistance program was implemented by authorization of a $2 million grant to the Laurentian Energy Authority, who in turn purchased cords of wood from areas loggers to fuel the biomass plants operating in Hibbing and Virginia.  

Fifteen mandatory grants of $9.6 million dollars were made for mining and mine-related paybacks through TEDF funds. Four of five eligible mining companies have reported an aggregate total of $18.6 million dedicated to capital reinvestments. Project to agency leverage for this program is 2:1.
       

Why is this goal important?
A diverse economy supported by multiple industries can best sustain vital communities with a good quality of life.

How will Iron Range Resources achieve this goal?  
        Investing in the creation of new businesses utilizing a variety of incentives including JOBZ

        Targeting recruitment efforts to growing industry sectors that are a good match to
           northeastern Minnesota

        Identifying and responding to regional workforce issues through expanded stakeholder
           networking; business, education, and industry convening; planning and coordinating; and
           implementing partnerships

What is the department’s progress to date?
Investment in New Businesses
Since 2004, 18 projects were approved for a total of $39.9 million in assistance.  These projects leveraged a total investment of $187 million and resulted in the creation of a projected 1,862 new jobs. The agency also participated in one of five JOBZ expansion projects that took place in the region during FY07.

Target Recruitment
Targeted recruitment, tradeshows and networking events focused in the areas of technology, aviation, manufacturing and customer service. A total of 50 contacts were made resulting in 10 qualified leads.

Workforce Development
A new partnership between Iron Range Resources and the Minnesota State Colleges and Universities (MnSCU) has enhanced opportunities for collaboration around regional workforce issues. The partnership utilizes shared resources, including a regional workforce coordinator. Through active participation as a member of the Workforce Investment Board’s (WIB) industry cluster team, the Regional Workforce Development Coordinator has played an integral role in positioning the WIB to transform itself in reaction to the current economic development climate of the region.

The WIB has also improved communication between industry and education stakeholders.

Additional results of workforce development include high school and post-secondary curriculum planning that has lead to an increase in the number of programs available for students, such as the Applied Learning Initiative and Project Lead the Way. These programs prepare today’s students for tomorrow’s workforce by providing a seamless transition from school to work. Post-secondary schools are also actively meeting industry demands for custom training through coordinated efforts and partnerships.

Why is this goal important?
The Mineland Reclamation Program provides for the reclamation, restoration or reforestation of lands affected by taconite and iron ore mining. Projects include safety issues, vegetation and reforestation, erosion repair, dust containment, recreational development, and wildlife habitat restoration.   

The agency also plays a role incorporating reclamation objectives into the active mining process through a Laurentian Vision Partnership (LVP). The LVP was formed to address post-mining land design as an integral part of day-to-day mining operations. It involves the region’s stakeholders and beneficiaries in the planning process to consider the economic, recreational and environmental impact of current activities on future projects.     

How will Iron Range Resources achieve this goal?
        Safety issues associated with abandoned mine lands are addressed in a timely fashion

        Reforestation is completed annually using agency grown seedlings

        The Laurentian Vision Partnership facilitates and produces long range land-use plans

What is the department's progress to date?
Three safety issues were addressed that included fencing and berm on former mine lands.    

A total of 150,000 seedlings were planted and used to re-forest 150 acres of land at United Taconite, Keewatin Taconite, Hibbing Taconite, Minntac, Northshore Mining, and St. Louis County, Ely.   

The mission of the Laurentian Vision Partnership is to “transform pits and piles into living lakes and landscapes, creating a legacy for our future.” The Laurentian Vision Partnership supported its third design charrette at Giants Ridge from April 22 – 26, 2007. The Mittal USA: Minorca East Reserve Design Charrette explored the reuse of the Minorca mine’s open pits, stockpiles and haul road. The charrette laid out important actions that
Biwabik, Mittal USA and others could take in the next five years to implement these or other proposals.                                   Mittal USA: Minorca East Reserve Design Charrette, Biwabik, MN