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Essar Minnesota Still Plans to Complete Minnesota Taconite Mine
07/12/2016 - Essar Steel Minnesota, which last week lost the public mineral leases related to the taconite mine and processing plant it has been building and filed for Chapter 11 bankruptcy, isn’t throwing in the towel.
In a statement, the company said it has found a new equity partner for the stalled project and, according to a report, apparently intends to contest the state of Minnesota’s decision to pull the leases.
Essar Minnesota has been building a US$1.8 billion taconite facility in Minnesota’s Iron Range, the first such new facility there in years. The project has advanced in fits and starts, but has been stalled since last fall after running out of money to complete construction.
Last week, Minnesota Gov. Mark Dayton pulled Essar Minnesota’s public mineral leases after it missed a deadline to reimburse the state for incentives it granted to the project.
Essar Minnesota told the Minneapolis Star Tribune that the state’s actions are "invalid."
Essar Minnesota said the state had promised that it wouldn’t take any action on the leases until 12:01 p.m. on Friday. But about a half-hour prior to that time, Essar Minnesota filed for bankruptcy, which, it said, should have automatically barred the state from executing on its decision under federal bankruptcy rules.
The Star Tribune has the full story here. Essar Minnesota’s statement about its bankruptcy filing is here.
Essar Minnesota has been building a US$1.8 billion taconite facility in Minnesota’s Iron Range, the first such new facility there in years. The project has advanced in fits and starts, but has been stalled since last fall after running out of money to complete construction.
Last week, Minnesota Gov. Mark Dayton pulled Essar Minnesota’s public mineral leases after it missed a deadline to reimburse the state for incentives it granted to the project.
Essar Minnesota told the Minneapolis Star Tribune that the state’s actions are "invalid."
Essar Minnesota said the state had promised that it wouldn’t take any action on the leases until 12:01 p.m. on Friday. But about a half-hour prior to that time, Essar Minnesota filed for bankruptcy, which, it said, should have automatically barred the state from executing on its decision under federal bankruptcy rules.
The Star Tribune has the full story here. Essar Minnesota’s statement about its bankruptcy filing is here.
