iron ore

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Midwest Memo: GM’s Record Year, R&D Decline In Chicago And Wisconsin Politics Are Wisconsin Politics

That’s a lot of clams GM made $7.6 billion last year. It was a record profit.

Mixed foreclosure news New foreclosure data is in. The numbers are down in Ohio and Michigan. But they’re up in Illinois.

Research and Decline R&D jobs dropped 43% in Chicago between 2000 and 2010, according to a new study. Crain’s Chicago Business has the write-up.

Collegial process The Columbus Dispatch reports Ohio’s 37 colleges and universities have agreed on a construction wish list for this year’s state budget. Governor John Kasich called the unified process “unprecedented.”

Small power plants, big effect? The closure of four small, little-used power plants is stoking speculation that energy prices in Ohio could rise. The Cleveland Plain Dealer says the common sense analysis would say that the change should have little effect on prices. But, the new world of online auctions for power prices “don’t necessarily make common sense.”

Bus cuts Detroit will cancel early-morning bus service in an effort to save cash.

Mining bill advances A special committee has been disbanded, and a controversial piece of mining legislation has been put on the fast track in the Wisconsin Senate, proving once again that nothing is simple in Wisconsin politics these days. The bill would loosen regulations to help open an iron mine in northern Wisconsin.

Cliffs Natural Resources Scraps Plans for UP Nugget Plant

courtesy of Cliffs Natural Resources

Cliff's Empire Mine in Michigan's Upper Peninsula

If you’ve been following our coverage of iron mining in the region, this might interest you.  Cliffs Natural Resources, North America’s biggest iron ore supplier, is scrapping plans to build an iron nugget plant in Michigan’s Upper Peninsula.

A nugget is just a little clump of very pure iron.  Big deal?  Well, here’s why the new nugget technology matters … and why Cliffs spent years studying it in cooperation with Kobe Steel of Japan.

Remember, the iron-rich regions of Michigan and Minnesota:

1) provided the iron ore

2) that made the steel

3) that helped the industrial Midwest become the industrial Midwest.

However, miners extracted so much high-grade ore, for so long, that mostly low-grade ore remains today.  Companies like Cliffs spend a lot of time and money processing that ore — essentially upgrading it into a product that contains more iron.  That product, called a pellet, is what they ship to steelmakers.

Nuggets have a far higher iron content than the pellets typically produced in the region.  They look like Junior Mints, but they’re almost 100% iron.  Very pure.  Which could make them very valuable to the next generation of steelmakers.

Check out our recent piece on a groundbreaking nugget plant in Minnesota.  Mesabi Nugget hasn’t reached full capacity yet, but it has produced more than 200,000 tons of iron nuggets.

As for Cliffs Natural Resources, the company decided a nugget plant in Michigan would not be commercially viable.  However, spokesman Dale Hemmila says that won’t prevent Cliffs from investing $60 million to extend the life of its Empire Mine to 2015.

The Empire and Tilden open pit mines are essential to the economy of the UP.  We reported earlier on one “company town” that relies on the economic oxygen of the mines.  If you’ve never been to Ishpeming, now’s your chance.

Midwest Memo: Environmental And Business Interests Clash In Ohio And Wisconsin, Sara Lee Returns To Chicago

Three stories making news across the Midwest today:

1. Ohio officials scrutinize fracking finding. Ohio officials are closely watching the fallout from an Environmental Protection Agency finding that hydrofracking might have caused groundwater pollution in Wyoming. The finding, announced Thursday, could have significant ramifications in Ohio, where leaders have haggled over how to regulate the burgeoning industry. The industry has contended that fracking is safe, but the EPA detected hydrocarbons likely associated with fracking chemicals in the groundwater of a Wyoming town where residents say their well water reeks of chemicals. “All of the rhetoric from the industry has been there’s no way that this can happen,” Trent Doughtery, a lawyer for the Ohio Environmental Council, tells The Columbus Dispatch. “This shows that it has happened, and we need to protect the people in Ohio.”

2. Wisconsin Republicans envision mining boom. Wisconsin Republicans proposed legislation Thursday that would encourage construction of iron ore mines and reduce environmental restrictions. Sponsors of the bill tell the Milwaukee Journal Sentinel its passage could create thousands of jobs. The newspaper reports the bill would scale back water protections and waste rock disposal, as well as mandate that the Department of Natural Resources accelerate its review process. Mining emerged as a significant state issue this year when Gogebic Taconite announced it would construct a new mine that would employ 700 workers. Advocates decried the sweeping rollbacks of environmental protections. The bill will gets its first hearing Wednesday, according to the newspaper, and could be voted upon in January.

3. Sara Lee headquarters back in Chicago. Six years after leaving, Sara Lee is returning part of its corporate headquarters to Chicago. The food and beverage company was headquartered in the city for more than 60 years before a 2005 consolidation brought it to suburban Downers Grove. Next year, the company will split into two publicly traded companies, and one will occupy a building on South Jefferson that will be renovated at a cost of $60 million, according to our partner station WBEZ. A $6.5 million subsidy, a first under Mayor Rahm Emanuel, helped bring the deal to fruition.

Can Technology Breathe New Life into the Midwest’s Old Iron?

Plant manager Jeff Hansen says Mesabi Nugget is a pioneer

The industrial Midwest might not be the industrial Midwest if it weren’t for the iron-rich regions of northern Minnesota and Michigan. These iron ranges have long supplied domestic steelmakers, depleting the highest quality ore along the way. Now, a plant in Minnesota is testing a process to dramatically upgrade the low-grade ore that remains.

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