September 30, 2017 11:47 PM
Governor Dayton is continuing state support for Tom Clarke's plan to resurrect the former Essar site. Saturday was the deadline of the 30-day extension granted to Clarke, in order to keep the state's mineral leases.
One key part of Dayton's decision includes money to be paid to contractors who are owed millions of dollars.
In a letter from his office Saturday morning, Dayton said that Clarke and his group have substantially satisfied its obligations to the bankruptcy court and the State of Minnesota. "Their progress has been very significant; their securing the necessary financial commitments has been most impressive; their negotiations for an offtake agreement with a Chinese company could open an entire new market for Range production; and their firm commitment to repay contractors $39.5 million next week, are altogether sufficient for me to direct DNR to file with the bankruptcy court today the state's support for the project's continuation."
He also referenced that failure to continue with Chippewa has very negative consequences for the Range. "Cleveland-Cliffs has expressed interest in acquiring the site's mineral leases, and Cliffs has proven itself to be a very strong, and greatly valued, leader of the revitalized mining operations. I do not want anything to damage that extremely important working relationship."
Here's the link to the full letter:
Updated: September 30, 2017 11:47 PM
Created: September 30, 2017 12:09 PM
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