Minnesota Power Energizes More Iron Range Growth
October 31 2014 - 8:30AM
Business Wire
New Magnetation Plant scheduled to be
operational during the first quarter of 2015
Minnesota Power, an operating division of ALLETE, Inc.
(NYSE:ALE) has built a new electric substation and constructed and
energized about ten miles of new transmission lines to serve
electric power to Magnetation LLC’s nearly-completed Plant 4 iron
ore concentrate plant north of Grand Rapids, Minn.
Magnetation LLC is a joint venture formed in 2011 between
Magnetation, Inc. and AK Steel Corp. It produces high-quality iron
ore concentrate from previously abandoned iron ore waste stockpiles
and tailings basins using a patented magnetic separation
process.
Minnesota Power provides service to two other Magnetation plants
on Minnesota’s Mesabi Iron Range as well as a rail loading
facility. The largest of these, Plant 4 will require up to 20
megawatts (MW) of electric power and will produce 2 million metric
tonnes of iron concentrates annually following completion of
construction later this year. Magnetation has said it expects Plant
4 to be operating early in the first quarter of 2015. Minnesota
Power and Magnetation entered into an electric service agreement
for Plant 4’s 20 MW load through at least 2025 that was approved by
the Minnesota Public Utilities Commission in May 2014.
Magnetation’s Plant 4 required the Duluth-based energy company
to permit and build the Canisteo substation and route and construct
115-kilovolt transmission lines totaling about ten miles in length.
The Minnesota Public Utilities Commission timely approved Minnesota
Power’s route permit application in June. Construction on the
transmission project began in July and was expedited to match
Magnetation’s aggressive plant start-up.
“We’re proud to work in tandem with an innovative new customer
expanding its production,” said ALLETE Chairman, President and CEO
Al Hodnik. “Minnesota Power has been powering the mining industry
for decades and it’s exciting to provide increased electric power
to Magnetation, a company developing Iron Range resources in a new
way and contributing to the overall health of our region’s
economy.”
Founded in 2006, the privately-held Magnetation Inc. was created
with the intention of using magnetic separation technology to
capture iron ore particles left over from previous mining
operations on Minnesota’s Iron Range dating back to the 1890s.
Magnetation LLC has recently completed construction of a 3 million
metric-tonne-per-year iron ore pellet plant in Reynolds, Ind.
Once fully operational, Magnetation LLC will supply
approximately 50 percent of AK Steel’s annual requirements of
fluxed iron ore pellets. AK Steel operates blast furnaces at steel
plants in Middletown, Ohio, Ashland, Ky., and Dearborn, Mich.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 143,000 customers, 16
municipalities and some of the largest industrial customers in the
United States. More information can be found at
www.mnpower.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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