Magnetation Inc. said Tuesday it is building a new iron ore pellet
plant outside of Minnesota, despite receiving incentives from the state.
Grand Rapids, Minn.-based Magnetation said in a news release that it
will build the $350 million facility in Reynolds, Ind., between Chicago
and Indianapolis. The company plans to break ground early next year,
with the facility opening in late 2014 or early 2015. It will employ 100
to 120 people.
Magnetation said it will transport iron ore concentrate from its
northern Minnesota plant to Reynolds, where it will be made into
pellets, a critical raw material in the steelmaking process. The
pellets will be used by AK Steel Corp., which is a 49.9 percent owner of Magnetation.
"With convenient access to major railways and highways, Reynolds is
an outstanding location for the company's new pellet plant," Magnetation
CEO Larry Lehtinen said in a statement. "We thank our local and state officials in Indiana for their ongoing support of our company."
Minnesota and Iron Range officials have long been frustrated with Magnetation in their efforts to have the facility built in Minnesota.
The state passed laws to make it easier for the project to get started,
and the company received $1 million in grants and loans from the state.
But the company said earlier this year that Minnesota was out of the running for various cost and regulatory reasons.
Manetation did say on Tuesday it will spend $120 million in northern
Minnesota to add iron ore concentrate capacity to its operations.
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