DNR says leases with Mesabi Metallics are terminated | www.WDIO.com

DNR says leases with Mesabi Metallics are terminated

WDIO
Updated: May 27, 2021 06:04 PM
Created: May 25, 2021 07:02 AM

A week after Mesabi Metallics held an event at their site in Nashwauk, the DNR said they have terminated the mineral leases with the company.

This is due to what the agency said were missed requirements in the lease agreement that were due on May 1st.

In a Thursday morning release, the DNR said they will follow up with Mesabi on next steps regarding any equipment that may need to be removed from the properties.

Mesabi Metallics president Larry Sutherland said they will continue to proceed anyways. "We'll take all necessary actions to protect our interests at this facility. We've spent $1.5 billion dollars already. And we have firm financial commitments for another $850 million to complete this facility. And we are going to do just that," he said. He added that they have local and regional support.

WDIO asked how they could move forward, without the state leases, and Sutherland reiterated they were going to proceed with the plan to complete the facility.

The DNR also said they have not made any decisions on future leasing of the state minerals in the area, but will take time to consider proposals before making a decision.

Both U.S. Steel and Cleveland-Cliffs have indicated they are interested in the minerals in Nashwauk.

Rep. Dave Lislegard said in a statement, "I applaud the DNR for their work to hold bad actors accountable for their inability to follow through on the commitment and obligations that were set forth and agreed upon. I am committed to ensuring that the most viable, logical company will receive state leases and following that, once real work begins on the site, Iron Rangers can soon experience the economic opportunities they deserve.”

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