The Economics and Logistics of Transporting Taconite Mining and Processing Byproducts (Aggregate): Minnesota and Beyond

Abstract

Every year, Minnesota’s taconite mining industry generates over 125 million tons of mining byproducts, a figure that is more than double the entire state’s annual aggregate usage. Since 2000, the Natural Resources Research Institute (NRRI), University of Minnesota, Duluth, has been investigating how these vast quantities of taconite mining byproducts can be used for construction aggregate purposes on an expanded basis. However, if taconite-based aggregate is to be competitive beyond the Mesabi Iron Range, cost-effective rail transport options will be needed, and rail-related economic and logistical barriers must be identified, quantified, and overcome. The reality is, lower value/higher volume commodities like construction aggregates are often economically limited by their distance to market, due to the cost of transportation. Consequently, this study is focusing on rail transport by reviewing/identifying transportation networks, logistics, equipment availability, costs, and potential difficulties associated with moving taconite aggregate through that network. Truck, barge, and Great Lakes shipping are also being addressed. By identifying the key transportation and market-related issues, this study will give potential end-users inside and outside Minnesota a better understanding of how taconite aggregate could be an important alternative to “conventional” aggregate sources. Likewise, taconite producers will have a better understanding of the relative ease or difficulty of marketing and/or moving various types of aggregate, and the potential economic benefit(s) thereof. By improving our understanding of what the supply, demand, and movement dynamics are (and how they interrelate), the prospect for expanded use of taconite aggregate will be enhanced - a development which will ultimately be important for both the economy and the environment, a dual benefit measurable in both a dollars (economic) and tons (resource conservation) sense. This Technical Summary Report describes project activities and progress through October of 2007.