ST. PAUL, MN – Governor Mark Dayton released the following statement after the Minnesota Department of Natural Resources (DNR) completed its final review of documents submitted to the State by Chippewa Capital Partners, LLC. The Minnesota DNR has determined that the company has satisfied all of the terms for reinstatement of its State mineral leases.
“The project’s emergence from bankruptcy in December 2017 was an important step toward Chippewa Capital Partners’ goal of finishing the plant's construction and beginning production.
“The agreement with the Minnesota Department of Natural Resources (DNR) required Chippewa to meet certain conditions in order to reinstate the State of Minnesota's mineral leases.
“After a detailed review, the DNR has determined that the company has satisfied those terms. Therefore, the State’s mineral leases are reinstated, which allows Chippewa to move forward with construction and production.
“I thank Chippewa for its continued commitment. The company's success will bring new jobs and economic vitality to the Iron Range.”
According to the DNR’s review, Chippewa Capital Partners, LLC, satisfied the following terms laid out in its settlement agreement with the State of Minnesota:
• By December 31, 2017, accelerating all remaining payments owed to contractors under the settlement agreement
• By January 9, 2017, extending a $4 million letter of credit to the DNR to secure royalty payments
• By May 31, 2018, executing off-take agreements for at least 4.2 MMTPA of pellets (sales contracts for at least 4.2 million metric tons per annum of pellet product)
• By May 31, 2018, executing a binding and enforceable construction agreement with a nationally-recognized Engineering, Procurement and Construction firm that is acceptable to lenders and the DNR for completion of a pellet plant
• By June 30, 2018, securing the Superior Mineral Resources LLC’s mineral holdings at the site
• By June 30, 2018, closing transactions for at least $850 million in binding and enforceable debt/equity commitments
• Meeting an ongoing commitment to perform or cure all obligations arising on or after December 21, 2017 (i.e. paying royalties due to the State of Minnesota, etc.)
