New proprietor Tom Clarke stated this week that he now has engineering plans prepared and financing in place to finish an estimated $20 million in retrofitting work to the previous Magnetation pellet plant in Reynolds, Indiana.
Clarke stated his ERP Iron Ore LLC, which now owns the previous Magnetation operations, might want to spend about $2 million to get the Grand Rapids concentrating and mining operations again on monitor.
“I feel we will have Grand Rapids up and producing focus late within the second quarter and delivery it right down to Indiana, we’ve got room to stockpile rather a lot down there, after which have Reynolds going by the third quarter to make pellets,” Clarke informed the Duluth Information Tribune this week.
The pellets made in Indiana are destined to make pig iron at a plant in Lorain, Ohio.
“The objective is to be making iron by the top of this yr,” Clarke stated.
The rebirth of the previous Magnetation Plant four outdoors Grand Rapids has been on maintain for months pending a transforming of the Reynolds plant to satisfy federal Clear Air Act requirements.
Clarke’s ERP Iron Ore gained the chapter rights to Magnetation one yr in the past and hoped to be producing iron ore focus at Plant four by now, with a lot of the operation’s one hundred thirty staff again on the job.
However, as first reported in August, ERP has been thwarted by two violation notices filed by the federal Environmental Safety Company in 2016 towards the Indiana plant, alleging the previous Magnetation house owners did not have correct air pollution management gear in a number of areas of operation. The EPA has an efficient maintain an any restart of the operations till the brand new gear is put in, stated Rob Bigelow, ERP’s managing director.
ERP came upon late final yr that it’ll take at the very least $20 million and a number of other months to retrofit the plant. The corporate initially stated it could possibly be the top of 2018 earlier than the Grand Rapids operations restarted, however now has moved that focus on ahead.
Consumers unaware of severity of violations
Clarke stated ERP acquired the bankrupt Magnetation with out figuring out the extent of the issue in Indiana, noting the EPA was nonetheless conducting its investigation. He stated the plant apparently by no means met allow requirements.
“I am going to take the blame for it. Perhaps we did not do all of our due diligence. … However it wasn’t one thing that was straightforward to seek out,” Clarke stated, including that the Reynolds plant was violating at 14 of 18 totally different potential emissions places. “I doubtless would nonetheless have acquired the (Magnetation) belongings if I had recognized. I simply would not have paid…