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Approval expected for Magnetation mining lease

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DULUTH, Minn. (AP) -- St. Louis County commissioners are expected to approve a land lease for a new, $50 million mining operation near Chisholm.

On Tuesday, the board will consider leasing nearly 500 acres of county-managed land around the old Douglas, Niles and Duncan mine tailings basins. Magnetation Inc. and Mesabi Nugget plan to process waste rock into ore concentrate.

The Duluth News Tribune says Magnetation will use its ore recovery technology to process leftover iron ore mine waste into 1 million tons of concentrate each year. Mesabi Nugget will turn the concentrate into iron nuggets at its plant near Hoyt Lakes.

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