abc
QUICK LINKS:

Contractors Not Getting Payments from Essar

Updated: 02/26/2014 6:22 PM
Created: 02/26/2014 4:38 PM WDIO.com
By: Renee Passal

Local contractors at the Essar Steel Minnesota are waiting for millions of dollars worth of payments from the company. And for that reason, according to the trade unions, no contractors are working on the site anymore.

Hammerlund Construction recently filed three liens against Essar. In those liens, they allege that $9 million dollars is owed to them for work on concrete, the tailings basin, and mine-stripping. Leaders told us that they were strongly encouraged to file the liens by their financial group.

And they are not alone. According to Representative Tom Anzelc, this has happened before. The Range delegation has urged Essar to pay the contractors. He said they were told in December that the company was going to get up to date on their accounts payable, have full financing by the end of 1Q of 2014, and be making pellets by October of 2015. 

"It would be almost impossible to fulfill those commitments," said Anzelc over the phone. "It's upsetting and disappointing to say the least. $73 million dollars in public tax dollars went into making this project happen," he added. "We need our local guys and gals to be paid."

Dan Kingsley, Area Business Rep. for the Operating Engineers Local 49, said they were told in the fall that work was going to ramp back up at the site this winter. But it hasn't happened.

"From the labor standpoint, we are disappointed.  People are not working, and we had high hopes they would be able to work through the winter. In Northern Minnesota, we don't get that many opportunities to keep a large number of people employed."

Essar said in a statement: "We are working with our contractors on financial matters, and appreciate all they've done for the project. With respect to project financing, substantial progress has been made and several important milestone's recently achieved.  We have reached the very final stage and expect additional funding to be available relatively soon."

Front Page

  • Some Northlanders Embrace April Snow Calling It 'Fun'

    While this spring snowstorm has many people begging for warmer weather, believe it or not, some people aren't sick of it. We caught up with a few people embracing our April snow.

  • Pine County Abuse Charges Have Other Survivors Speaking Out

    The Survivors Network of Those Abused by Priests said neighbors in Pine County could have done more to help victims of sexual assault. Victor Barnard, the former leader of a Finlayson religious group, is charged with almost 60 crimes. He allegedly abused girls who were in what he called a "maidens group."

  • Body of Duluth Woman Missing Since July Found

    Duluth Police say the decomposed body found Tuesday in the Lincoln Park neighborhood is likely that of a woman who had been missing since last summer. Dale Elizabeth Gerard, 74, was last seen getting off a bus about five blocks away from where the body was found.

  • $200K Federal Grant Awarded to Kick-start Economy in I'Falls after Boise Layoffs

    International Falls is getting federal help in the city's efforts to bounce back from last year's layoffs at the Boise Paper Mill. Rep. Rick Nolan (D-Minn.) says a $200,000 federal grant will kick-start the city's economic recovery. The grant comes from the US Economic Development Association, and will help local officials establish a strategy to recover from the layoffs that left more than 300 employees without work. 

  • Courtesy: Sen. Bob Jauch's office Legislation Signed to Help Superior Company

    Northern Wisconsin state lawmakers joined Stella Jones company executives at a ceremony in Madison on Wednesday, where Gov. Scott Walker signed legislation into law that will help reduce costs for the company's Superior facility

 

Winter Storm Warning

MN AREAS AFFECTED: Northern Aitkin; Pine; South Aitkin
Expires: 4/17/2014 4:00 AM

Winter Storm Warning

MN AREAS AFFECTED: Carlton, South St. Louis; Southern Lake, North Shore
Expires: 4/17/2014 6:00 AM

Winter Weather Advisory

MN AREAS AFFECTED: Central St. Louis
Expires: 4/17/2014 6:00 AM

Winter Storm Warning

MN AREAS AFFECTED: Northern Cook, Northern Lake; Southern Cook, North Shore
Expires: 4/17/2014 12:00 PM

Flood Warning

MN AREAS AFFECTED: Aitkin; Crow Wing
Expires: 4/19/2014 1:00 PM

Winter Storm Warning

WI AREAS AFFECTED: Burnett
Expires: 4/17/2014 4:00 AM

Winter Storm Warning

WI AREAS AFFECTED: Douglas; Washburn
Expires: 4/17/2014 6:00 AM

Winter Storm Warning

WI AREAS AFFECTED: Ashland; Bayfield; Iron; Price; Sawyer
Expires: 4/17/2014 10:00 AM

Winter Storm Warning

MI AREAS AFFECTED: Gogebic; Ontonagon
Expires: 4/17/2014 2:00 PM

Advertisement
Advertisement
Advertisement
Advertisement