Smith Foundry to partially shut down operations in settlement with federal regulators

A Minneapolis iron foundry is partially shutting down, after a year-long investigation that alleged violations of pollution control laws. 

The Environmental Protection Agency announced Tuesday that it has reached a settlement with Smith Foundry, located in Minneapolis’s East Phillips neighborhood. The foundry, owned by Zynik Capital, has a one-year deadline to shut down its furnace and casting processes, which regulators say will drastically reduce emissions. It will also have to pay an $80,000 fine.

“This settlement is an important step toward protecting the health and well-being of residents in the East Phillips community,” said Katrina Kessler, commissioner of the Minnesota Pollution Control Agency. “We will continue to engage with and communicate frequently with residents.” 

The investigation started last summer, after federal regulators visited Smith Foundry for a surprise inspection. They reported problems with the site’s pollution control systems, which resulted in emissions of particulate matter and lead that violated the foundry’s permit. 

Local residents and environmental activists called for the foundry to be shut down, citing concerns about elevated pollution in a neighborhood that already faces environmental issues. The area is home to the Native American community of Little Earth. Neighborhood residents say there are problems with arsenic and high asthma rates. 

Cassie Holmes is the vice president of the East Phillips Neighborhood Institute. She called the settlement a win, but said she’s waiting to celebrate until the foundry stops operating.

“I feel like it will be a win if it actually happens,” Holmes said. “We keep on advocating until i’'s actually in our hands, it’s actually ours, they’re actually out of here.”

A Smith Foundry spokesperson said it will significantly alter its operations, converting to a metal finishing facility as it shuts down its processes as agreed in the settlement. 

“This strategic initiative is aligned with our values as a company and we believe it will position Smith Foundry for sustained success and growth,” foundry president Adolfo Quiroga said in a statement. “We are wholeheartedly dedicated to making meaningful contributions that enhance each community we serve.” 

The foundry will need to submit more permit application materials to state regulators in order to convert to a metal finishing facility. It will need to submit a cumulative pollution levels analysis, which includes details on how projected pollution from its converted facility will add to existing pollution in the area.

The Minnesota Pollution Control Agency said Tuesday that regulators are working to schedule a meeting with residents to discuss the future of the foundry. 

Concerns about the foundry in particular stretch back several years, before new owners bought the site in December 2022. Neighbors said they’ve often noticed smoke and odors coming from the facility, which borders the Midtown Greenway bike path.

Evan Mulholland is a lawyer with the Minnesota Center for Environmental Advocacy who has worked with local activists in their campaign to shut down the foundry. He called the decision a step forward — but not a victory.

“It’s not soon enough,” Mulholland said. “We don’t see why it should continue to operate for an additional year.”

According to the EPA, the settlement requires Smith Foundry to immediately shut down two of its pouring and cooling lines, and caps the amount of metal the facility can melt and pour over the next year. 

Local activists plan to lead a rally outside the foundry on Tuesday evening.

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