MINNETONKA, Minn. (AP) — Cargill Inc. is teaming up with an Iron Range company that extracts high-grade iron from old taconite tailings.
Minnetonka-based Cargill said Thursday its investment will allow Nashwauk-based Magnetation Inc. to boost its production from 150,000 metric tons per year to 450,000 metric tons.
The privately held companies did not disclose terms of the deal. But Cargill will help take Magnetation’s proprietary separation technology global and get a new supply of iron in return.
Bob Mann, vice president of Cargill Ferrous International, says Cargill already has a global customer base of iron and steel producers and consumers, and the deal will help it expand, particularly in Asia.
The deal comes amid a resurgence in Minnesota’s iron mining industry. The state estimates Iron Range operations produced 34 million tons of taconite pellets in 2010, compared with 17 million tons in 2009.
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