Economic Impact: Mesaba Metals Copper and Nickel Mining in Northeast Minnesota

Abstract

The UMD Bureau of Business and Economic Research (BBER) was asked to study and estimate economic impacts of proposed copper nickel processing plant using a new mining technology (CESL) in Hoyt Lakes for the East Range Joint Powers Board. The BBER worked closely with Teck Cominico, the East Range Joint Powers Board, and others to determine the key assumptions for development of the IMPLAN1 model. Inputs required for this model included average employment for each year during the construction period, and dollar cost on a year by year basis for the construction period. From these data, Social Accounts, Production, Absorption, and Byproducts information were generated from the national level data and were incorporated into the model. The study s purpose is limited to economic impacts from these activities. Other impacts, such as environmental or social impacts, are not a part of this analysis. Regional data for the impact model for Value Added, Employment, and Output were supplied by comparable study area data; these data for the most recent year (2000) were purchased from IMPLAN for this impact. A key assumption for this analysis is that the comparable mining impact data provided describe a valid proxy for the NE MN proposed copper/nickel mining operation.2