1. Commissioner Tony Sertich April 17, 2012 2012 SME – Minnesota Section Conference MINING IN MINNESOTA

2. Over 120 Years of Mining in Minnesota 85 th Annual Meeting of the SME Minnesota Section 73 rd Annual University of Minnesota Mining Symposium

3. MINING IN MINNESOTA OVER 120 YEARS

5. HISTORY OF IRON ORE PRODUCTION NATURAL ORE FOLLOWED BY TACONITE

6. MINING IN MINNESOTA TACONITE

12. ANNUAL ECONOMIC IMPACT OF MINING $3.1 billion Resource: Labovitz School of Business and Economics, Bureau of Business and Economic Research 2007 - The Economic Impact of Ferrous and Non ‐ Ferrous Mining on the State of Minnesota, and on the Arrowhead Region and Douglas County, WI

13. MINING IN MINNESOTA TACONITE

16. MINING EMPLOYMENT & WAGES 4,215 Employees (Direct) 13,000 Employees (Spinoff) $100,000 Average Wage & Benefits

17. 2011 MINING IMPACTS – STATE Production tax $79,138,000 Royalty payments$34,274,039 School Trust Royalty Income$20,969,968 University Trust Royalty Income$12,526,491 Tax Forfeit Royalty Income$388,927

18. 2011 MINING IMPACTS – REGION $79,138,000

19. TACONITE PRODUCTION HISTORY

20. TACONITE COMPANIES

21. WE WELCOME OUR NEW NEIGHBORS

22. Cardero Iron Ore Duluth Metals – Twin Metals Encampment Minerals Kennecott Exploration Lehmann Exploration Minerals Processing Corp PolyMet Prime Meridian Resources Teck Vermillion Gold Western Metals OUR FUTURE NEIGHBORS

23. DAYTON ADMINISTRATION ACCOMPLISHMENTS Executive Orders were issued to evaluate, recommend improvements and expedite state environmental review and permitting processes. Permitting agencies are publishing efficiency reports. Mining Subcabinet created to ensure mining projects are on- track, timely and coordinated. Mining Coordinator Position established to serve as a first point of contact for mining projects. 2012 Legislative Session. Implemented additional permitting reforms, as well as a pilot program for an alternative form of environmental review.

24. CompanyProjectYear Permit Issued ArcelorMittalNew Taconite Mine Pit2007 Essar SteelNew Taconite Mine, Taconite Process Plant & Steel Mill2007 Mesabi NuggetPig Iron Nugget Plant2007 MagnetationPlant #1 to reprocess old iron ore tailings near Keewatin2008 Teck American1400 ton bulk sample Cu+Ni+PGM2008 Cooperative Mineral ResourcesManganese Ore bulk sample near Emily2010 MagnetationPlant #2 to reprocess old iron ore tailings near Taconite2010 United TaconiteProcessing plant expansion2010 Mesabi NuggetNew Taconite Mine to feed Mesabi NuggetEIS In Progress PolyMetNew Cu+Ni+PGM Open Pit Mine and re-use of former taconite mill and tailings facility Supplemental Draft EIS being written. US Steel KeewatinSignificant Expansion of Keewatin Taconite facility2011 MagnetationExpansion of iron ore tailings reprocessing in Plant 12011 Magnetation/AK Steel CorporationPlant #4 to reprocess old iron ore tailings near Coleraine and proposed pellet plant Application submittal pending Mining Resources /MagnetationPlant #3 to reprocess old iron ore tailings near Chisholm2011 Essar SteelMinnesota Pellet Plant expansionAir permit issued pending federal review period PERMITTING PROGRESS

26. THANK YOU Commissioner Tony Sertich T.Sertich@state.mn.us