DULUTH, Minn.--(BUSINESS WIRE)--Minnesota Power, an operating division of ALLETE, Inc. (NYSE:ALE) has
built a new electric substation and constructed and energized about ten
miles of new transmission lines to serve electric power to Magnetation
LLC???s nearly-completed Plant 4 iron ore concentrate plant north of Grand
Rapids, Minn.
Magnetation LLC is a joint venture formed in 2011 between Magnetation,
Inc. and AK Steel Corp. It produces high-quality iron ore concentrate
from previously abandoned iron ore waste stockpiles and tailings basins
using a patented magnetic separation process.
Minnesota Power provides service to two other Magnetation plants on
Minnesota???s Mesabi Iron Range as well as a rail loading facility. The
largest of these, Plant 4 will require up to 20 megawatts (MW) of
electric power and will produce 2 million metric tonnes of iron
concentrates annually following completion of construction later this
year. Magnetation has said it expects Plant 4 to be operating early in
the first quarter of 2015. Minnesota Power and Magnetation entered into
an electric service agreement for Plant 4???s 20 MW load through at least
2025 that was approved by the Minnesota Public Utilities Commission in
May 2014.
Magnetation???s Plant 4 required the Duluth-based energy company to permit
and build the Canisteo substation and route and construct 115-kilovolt
transmission lines totaling about ten miles in length. The Minnesota
Public Utilities Commission timely approved Minnesota Power???s route
permit application in June. Construction on the transmission project
began in July and was expedited to match Magnetation???s aggressive plant
start-up.
???We???re proud to work in tandem with an innovative new customer expanding
its production,??? said ALLETE Chairman, President and CEO Al Hodnik.
???Minnesota Power has been powering the mining industry for decades and
it???s exciting to provide increased electric power to Magnetation, a
company developing Iron Range resources in a new way and contributing to
the overall health of our region???s economy.???
Founded in 2006, the privately-held Magnetation Inc. was created with
the intention of using magnetic separation technology to capture iron
ore particles left over from previous mining operations on Minnesota???s
Iron Range dating back to the 1890s. Magnetation LLC has recently
completed construction of a 3 million metric-tonne-per-year iron ore
pellet plant in Reynolds, Ind.
Once fully operational, Magnetation LLC will supply approximately 50
percent of AK Steel???s annual requirements of fluxed iron ore pellets. AK
Steel operates blast furnaces at steel plants in Middletown, Ohio,
Ashland, Ky., and Dearborn, Mich.
Minnesota Power provides electric service within a 26,000-square-mile
area in northeastern Minnesota, supporting comfort, security and quality
of life for 143,000 customers, 16 municipalities and some of the largest
industrial customers in the United States. More information can be found
at www.mnpower.com.
The statements contained in this release and statements that ALLETE
may make orally in connection with this release that are not historical
facts, are forward-looking statements. Actual results may differ
materially from those projected in the forward-looking statements. These
forward-looking statements involve risks and uncertainties and investors
are directed to the risks discussed in documents filed by ALLETE with
the Securities and Exchange Commission.