Minnesota iron mining-our communities, state and nation depend on it.
The Iron Mining Association of Minnesota's (IMA) mission is to promote an iron ore industry that will provide long-term growth and prosperity for all stakeholders through profitability in a competitive, global market.
The membership is made up of the six producing iron ore mines in Northeast Minnesota that are capable of producing over 40 million tons of taconite annually from Minnesota’s iron ore deposits. The trade association also is made up of two hundred vendors that supply products and services to the mining industry. The companies that operate the mines include ArcelorMittal, Cliffs Natural Resources and US Steel.
The iron mines directly contribute $1.8 billion to the economy of Minnesota every year in the form of purchases, wages and benefits, taxes, and royalties. Subsequent business impact induced as the result of iron mining is responsible for more than an additional $1.6 billion—making the total economic impact $3.1 billion on the state and region’s economy. Currently the mines directly employ approximately 3,000 men and women, with supporting an additional 1210,000 employed by vendorsjobs.
Part of the direct impact to the economy includes taxes and royalties paid by the iron mining industry. Taxes payable in 2008 equaled $148.7 million. Distribution of those taxes included $56.9 million towards Minnesota’s education--$45.8 million to K-12 and $11.1 million to the University Trust Fund.
This positive effect on the economy is expected to increase with upgrades to existing mines and addition of new iron mining initiatives.
Essar Steel Minnesota, Magnetation, and Mesabi Nugget are presently under construction and have recently joined the IMA. We look forward to them mining and producing iron ore and steel products in the immediate future.
The new mines will increase employment not only in the mines. Businesses that build the infrastructure and supply products and services to the mines are now seeing increases in employment. Minnesota's economy will benefit from the new mines in the form of purchases, wages and benefits, taxes and royalties. Construction alone will contribute an additional $5.2 to the state’s economy.
For more information contact Craig Pagel at:
218-722-7724 Office
218-838-0615 Cell
Iron Mining has been in Minnesota for more than a Century
The mining industry has made a profound contribution to Minnesota for more than a century. In fact, it is one of the pillar industries upon which our state has been built.
The Iron Mining Association is committed to working to ensure Minnesota keeps winning its fair share of the world market. For years, that is precisely what we have been doing—because we want our industry leaders, legislators, suppliers, workers, their families and our communities to have confidence in our mining sector and in its future. And there are plenty of reasons for confidence at this time.
Celebrating the past, present and future.
Growing Industry. Growing Commitment.
In Minnesota, the iron mining industry contributes to the local communities, region and state through jobs, production taxes, education programs and scholarships.
Minnesota’s Iron Mining Industry Statistics*
| Direct employment | 3,000 individuals |
| Average wage and benefit package | $65,000/year |
| Total annual payroll | $269 million** |
| The regions iron mines provide the highest paying technical jobs in the region. | |
| Industry vendor employment | 10,000 individuals |
| Iron mining is the main economic engine of the region – making other businesses and jobs possible. | |
| Financial impact | $3.1 billion/year |
| Minnesota’s mining industry is ranked number one in gross product output – adding over $3.1 billion dollars annually to regional economy Domestic iron ore production is important to the security of our country |
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| Taxes | |
| Production tax | $94.1 million/year |
| Occupation tax | $10.4 million/year |
| Royalty payments | $87.0 million/year |
| $56.9 million per year is paid to state education programs by Minnesota’s mining industry. | |
| K – 12 education | $45.9 million/year*** |
| University of Minnesota trust funds | $11.0 million/year*** |
*Source: Iron Mining Association of Minnesota, 2008
**Source: Minnesota and Wisconsin Quarterly Census of Employment and Wages, 2007
**** Source: Department of Natural Resources 2008
If it wasn't grown; it was probably mined.
From paperclips to ships, Iron Ore is the key element used to produce almost everything we use in our daily lives.
Example of how iron ore is made into steel that we use everyday can be viewed at the following: