ST. PAUL, MN – Governor Mark Dayton released the following statement today, regarding the Department of Natural Resources’ objection to the recent court filing by Mesabi Metallics.
“In its filing, Mesabi Metallics again failed to demonstrate any ability to finance the completion of the Essar construction project or to operate it successfully. For the past 16 months, Essar/Mesabi Metallics has been unable to show the solid financial commitments, sufficient to complete the project and to repay the Range contractors the money they are owed.
“Mesabi Metallics proposes that it be granted possession of the State’s mineral leases for the next 17 years without any commitment to complete the project or begin mining. The DNR terminated those leases last July, when then-Essar once again failed to meet the leases' conditions. However, Essar declared bankruptcy, thus blocking the State's rightful termination of them.
“I want that half-completed project to be completed and to fulfill then-Essar's long-broken promise to bring new jobs to the Iron Range. Regaining the State's rightful control of its leased properties, so that through an open process they can be transferred to a company with the demonstrated ability to develop and operate a successful project, is essential to bringing important new jobs to the Range. I therefore support the DNR’s decision to object to Mesabi Metallics’ proposal.”
