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UMD report says new mining projects could add $4.5 billion to Minnesota economy

Mining in Minnesota is a major contributor to the state economy, with an economic impact of $3.2 billion in 2010. And projects now in the works could more than double the impact, says a report by the University of Minnesota Duluth's Labovitz School of Business and Economics.

The report said that if all the expansions and new projects now being considered come to fruition, there's a prospect of an additional $4.5 billion for the state's economy. That includes another 15,500 industry jobs.

The proposed expansions and new projects would also mean lots of new construction over the next few years, adding an average of more than 2,400 jobs a year.

An outline of the report also notes that:

...iron mining production in 2010 generated nearly $152 million in taxes and royalties to state and local units of government payable in 2011; of that, more than $64 million supported local school districts and the University of Minnesota.

News of the report was sent out by Mining Minnesota and the Iron Mining Association of Minnesota.

"Based on overall employment and broad economic impact, it’s clear that mining is extremely important to the economy of the entire state of Minnesota," Craig Pagel, president of the Iron Mining Association of Minnesota, said in a statement. "Regionally, mining remains the single largest contributor to the health of our economy — today and into the future."

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