KEYC - Minnesota Leaders Approve Deal for Pellet Plant, Ore Project

Minnesota Leaders Approve Deal for Pellet Plant, Ore Project

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Minnesota leaders have approved a lease agreement with a company that intends to complete construction on a pellet plant and another facility to produce high-grade iron ore.

The governor, attorney general, secretary of state and state auditor approved the agreement Monday with Chippewa Capital Partners.

The deal gives the company and its investors until August 31 to secure at least $850 million in financing. The state could cash in a $4 million line of credit if the company defaults.

Work on the pellet processing plant in Nashwauk must begin before October and finish by December 2019. Construction on a separate production facility on the Iron Range would begin in 2018 and end by 2022.

The deal revitalizes a project that stopped when Essar Steel Minnesota went bankrupt in 2016.

-KEYC News 12