DULUTH, Minn. (AP) — An Iron Range company has secured a $400 million, seven-year deal to provide iron ore concentrate to a Mexican steel producer.
Magnetation Inc. recycles taconite tailings at its Keewatin plant. Minnesota Public Radio reported Thursday the company has just completed financing that will help upgrade the plant, boosting its capacity from about 160,000 metric tons to 450,000 metric tons of iron concentrate a year.
The increased production will be shipped by rail 1,500 miles to Mexican steel producer Alto Hornos de Mexico, known as Ahmsa.
MPR says shipments will begin in January of 2012.
Magnetation has already increased its employment to 50 workers, and says it will add about 24 more jobs.
The company uses magnetic separators to extract ore from old mining waste. Its primary customer is Mesabi Nugget of Hoyt Lakes.
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