Judge sides with DNR in Mesabi Metallics’ lawsuit

DULUTH, MN. (KBJR 6) - Owners of an iron ore project on the Iron Range have to pay the state of Minnesota more than $17 million following a judge’s ruling.

The Nashwauk project dates back to 2003 and has been under several developers. The most recent being Mesabi Metallics. The company has been working to get the site up and running for years.

That came to a halt in May of 2021 when the Minnesota Department of Natural Resources terminated the company’s state mineral leases due to certain requirements not being met.

Shortly after, the company filed suit against the agency.

Now, a judge has ruled in favor of the DNR and is requiring the company to pay the state back in royalties.

In a statement, the department celebrated the decision saying their main goal is getting the facility up and running to benefit local communities.

“Going forward we will carefully evaluate our options for doing this and will consider putting the leases up for bid with qualified parties.”