Wednesday, June 19, 2013

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Biggest economic boost since K.I. Sawyer
Posted: 06.17.2010 at 7:06 PM
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Marquette County officials estimate Kennecott's mine will add 500 construction trade workers to build the mine and refurbish the Humboldt Mill

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MARQUETTE COUNTY -- Rio Tinto's investment will enable construction of Kennecott's new underground mine and rehabilitation of the existing Humboldt Mill among other related projects.  It will also provide much-needed taxable revenue for Marquette County.

Kennecott's Eagle nickel and copper project is the largest funded project in Marquette County since the KI Sawyer Air Forse base.  When it shut down in 1995, County officials estimate Marquette County lost $157 million.

"I think the whole area was pretty gloom and doom because you can't loose a major employer like that without having some impact, and there were some tough times,” said John Marshall, former chairman of the Lake Superior Community Partnership.  “We lost some businesses that depended on the people at the base and the base."

County officials say it took 15 years to recover the 1,100 jobs that were lost at Sawyer.  Kennecott will be a further help.

"It won't surpass what KI Sawyer was, but it certainly will add--just in salaries to the employees--eight to ten million a year, so it certainly has a big economic benefit to all the businesses in Marquette County,” said Gerald Corkin, Chairman, Marquette County Board of Commissioners.

County officials estimate the mine will add 500 construction trade workers to build the mine and refurbish the Humboldt Mill.  Another 200 permanent jobs will be created when the mine and Humboldt Mill begin operation.  The taxable revenue on Rio Tinto's investment is still being determined.

"The taxable value of the mine will be determined by the state geologist,” said Steve Powers, Marquette County Administrator.  “He will be determining the value of the mine based on the value of the ore and expense of extracting that ore."

Preparation on the mine site has already begun, demolition of the mill will also take place this year.  But the main focus of the work will be the construction of an advanced water treatment plant and related environmental control systems.

Production will start in late 2013.

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