Cliffs Reaches Long-Term Power Deal for Michigan Mine
08/16/2016 - Cliffs Natural Resources Inc.’s Tilden Mining division has signed a long-term power supply agreement with WEC Energy Group, the iron ore miner has announced.
Cliffs said the 20-year agreement with WEC will provide its Michigan mine with reliable and affordable electricity.
“With a significant and longstanding presence in the Upper Peninsula of Michigan that spans over 160 years, Cliffs' commitment to operate in the region for many more years to come has been greatly enhanced through this new energy agreement with WEC Energy Group,” Cliffs chief executive Lourenco Goncalves said in a statement.
"Our Tilden Mine produces among the highest quality pellets in North America. With a stable, long-term source of power in place, Tilden will also continue to be the most operationally efficient producer of pellets for the domestic steel industry,” he said.
As part of the agreement, WEC Energy, through a new entity called Upper Michigan Energy Resources Corp., will build and operate two natural gas-based power plants, adding 170 megawatts of generating capacity to Michigan’s Upper Peninsula.
The plants are to come on-line in 2019, and will allow for closure of the coal-fired Presque Isle power plant along the shores of Lake Superior.
According to the Detroit Free Press newspaper, the new plants would resolve long-term reliability concerns from closing the coal plant and hold the line on electricity costs for Upper Peninsula residents.
However, Cliffs and other customers remain at odds with a WEC Energy utility, We Energies, over payments made to keep the Presque Isle plant operating, reports the Milwaukee Journal Sentinel.
You can read the full Journal Sentinel story here. The Detroit Free Press story is here.
“With a significant and longstanding presence in the Upper Peninsula of Michigan that spans over 160 years, Cliffs' commitment to operate in the region for many more years to come has been greatly enhanced through this new energy agreement with WEC Energy Group,” Cliffs chief executive Lourenco Goncalves said in a statement.
"Our Tilden Mine produces among the highest quality pellets in North America. With a stable, long-term source of power in place, Tilden will also continue to be the most operationally efficient producer of pellets for the domestic steel industry,” he said.
As part of the agreement, WEC Energy, through a new entity called Upper Michigan Energy Resources Corp., will build and operate two natural gas-based power plants, adding 170 megawatts of generating capacity to Michigan’s Upper Peninsula.
The plants are to come on-line in 2019, and will allow for closure of the coal-fired Presque Isle power plant along the shores of Lake Superior.
According to the Detroit Free Press newspaper, the new plants would resolve long-term reliability concerns from closing the coal plant and hold the line on electricity costs for Upper Peninsula residents.
However, Cliffs and other customers remain at odds with a WEC Energy utility, We Energies, over payments made to keep the Presque Isle plant operating, reports the Milwaukee Journal Sentinel.
You can read the full Journal Sentinel story here. The Detroit Free Press story is here.
