China’s building boom has helped to double prices for Iron Range taconite in the last three years. But some of that iron ore that found its way halfway around the world is coming back to the United States as imported Chinese steel.

The American Iron and Steel Institute sounded an alarm late last month, criticizing China’s skirting of commitments made to the World Trade Organization to limit export subsidies.

How to do business in China, and compete with competitors there, is getting greater attention in this region. A central theme emerged at a “China Ready” symposium held in Duluth Sept. 21 for area businesses:

Contractual commitments often are little more than a starting point, according to China experts. Everything, everything is an ongoing negotiation, they said.

Loggers face soft market for wood

A federal judge reinstated Clinton-era bans on road building for logging and mining in remote forestlands in late September. It will have little immediate impact on the region’s national forests, however.

In fact, several mills are taking few, if any logs, according to loggers. They cite a housing slowdown that has reduced demand for oriented strand board and a flat market for paper.

There is a silver lining in this for the mills. Flagging demand for wood has sent record stumpage prices to more modest levels. That’s the price loggers pay to cut wood on public and private lands. But those prices may be set as long as four years before the wood is cut. And that’s a double whammy for loggers who paid high stumpage prices for wood they can’t sell in the current downturn.

Northwest Wisconsin iron mining inches forward

A lot of “ifs” remain, but the discussion of a resumption of iron mining in Northwest Wisconsin is widening.

In an August presentation to the Iron County Board, top executives from LaPointe Iron Co. in Hibbing outlined the company’s search for a mining company to develop a magnetite iron ore body along a 21-mile narrow stretch south of Hurley and Ashland. The deposit is estimated at about 2 billion tons and represents about 20 percent of the known iron ore reserves in North America. They said the operation could include steelmaking and look a lot like the Minnesota Steel Industries project moving forward in Itasca County near Nashwauk that would produce semi-finished slabs.

The project proposes open-pit mining of a deposit discovered in the 1880s. But the ore body is thin and deep, and will be expensive to recover.

The company is seeking a major mining firm to lease the mineral rights and finance the project and will need state permits and support, as well. Best case: a mining development within five to seven years, they said.

Windmill cargo shipped to North Dakota

The last blades, turbines and related equipment were off-loaded at the Port of Duluth on Sept. 21 for shipment via flatbed truck to what will become North Dakota’s largest wind farm when it goes online later this year.

The cargo arrived Sept. 18 from Sweden aboard the BBC India. It is destined for the Oliver County Wind Energy Center, which will generate up to 50.5 megawatts of renewable wind energy.

Minnesota Power will be the sole purchaser of that energy. The Duluth utility is partnering with FPL Energy, which will own and operate the wind farm.

Genesis Attachments has new owner

Sept. 15 marked a new chapter at Genesis Attachments in Superior with the departure of one of two co-general managers at the manufacturer of shears for the demolition, reconstruction and scrap processing industries.

Kevin Bakke, 47, and one of four original founders, retired from the company in a transition that stems from the Aug. 30 sale of the company’s parent firm to New York-based Dover Corp. Bakke and co-founder Bruce Bacon own the building on Superior’s Connors Point and will lease it to the new owner for 10 years. Bacon is staying on to run the operation for Dover Corp.

Dover Corp. confirmed it will undertake a $2.5 million expansion at the Superior plant and hire 20 more employees over the next six months, which will boost its payroll to 140 employees.

Ironworld becomes a nonprofit

Ironworld Discovery Center in Chisholm has ended a 35-year history as a publicly-operated entertainment center, museum and archive for Iron Range history with its conversion to nonprofit status.

On Sept. 11, the Iron Range Resources board approved a 10-year lease and management agreement with the new nonprofit, called the Ironworld Development Corp.

Ironworld has been plagued by operating losses since its creation by the state agency, requiring annual subsidies of up to $2 million. IRR Commissioner Sandy Layman engineered the conversion to nonprofit status, which is hoped will wean the operation of public subsidies over the next six years.

Nursing home will host debate

Bayshore Health Center has invited Duluth area legislative candidates to an Oct. 9 public forum to address conditions in Minnesota’s nursing home industry, and the state’s extended care regulations.

The debate will be held at the Park Point nursing home at 1601 St. Louis Ave., beginning at 10 a.m. Further details are available at 218-727-8651.

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