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Duluth, Minn. (AP)

Minnesota Power will service mine company

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Minnesota Power said Tuesday it has reached an agreement to provide service to an Iron Range company that produces iron concentrate.

Magnetation expects to open a plan near Taconite in May 2012, but has already begun site preparation work. The company says it will produce 500,000 metric tons of iron concentrate at the new plant in 2012 and 800,000 tons each year after that.

The Duluth News Tribune says the concentrate is made from previously mined ore. The Duluth-based power company expects a peak electrical demand from Magnetation of about 5 megawatts.

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Information from: Duluth News Tribune

(Copyright 2011 by The Associated Press. All Rights Reserved.)