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Cliffs Natural Resources may bring more jobs
Posted: 03.16.2011 at 6:02 PM
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Michigan Iron Nuggets would create about 100 permanent jobs

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TILDEN TOWNSHIP -- It's arguably the biggest challenge our country and state currently face:  creating more jobs.

Cliffs Natural Resources has received big support locally and from the state to do just that with the creation of a new facility in Tilden Township...Michigan Iron Nuggets.  The proposed facility would manufacture iron pellets different from the ones already manufactured at Cliffs Natural Resources.  These pellets would be about 97 percent pure iron.

Pellets that Cliffs Natural Resources is currently producing are about 65 percent iron.

"The nuggets, actually, can be used in other applications in the steel making business,” said Cliffs Natural Resources Spokesperson Dale Hemmila.  “So it opens up a new market for Cliffs."

The Michigan Economic Development Corporation approved 1.9 million dollars in tax abatements over the course of six years. 

And Tilden Township is helping out, too.

"We approved 12 years and then that will get sent to the State Tax Commission and they set a percentage which we're thinking it's 50 percent,” said Tilden Township Supervisor, Lori Kulju.  “And we're thinking around three million."

That estimated $3 million will be the amount of tax breaks per year for 12 years.

But the tax incentives won't be taken advantage of right away.  They're contingent upon the construction of Michigan Iron Nuggets, however, they certainly are a step in the right direction.

"Both of these tax abatements are critical, positive steps moving forward for a potential nugget plant here in Michigan," Hemmila said.

Right now there is no word on when construction of the new facility would start.

Cliffs Natural Resources hopes to make their final decision in the "relatively near future."

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