Minnesota Power reaches deal with PolyMet Mining

Minnesota Power, a division of Duluth-based Allete Inc. announced today that it has reached an agreement with the U.S. subsidiary of PolyMet Mining Corp. to provide all of PolyMet’s electric service needs through 2018 at its proposed copper, nickel and precious metals mining operation located in northeastern Minnesota.

PolyMet plans to begin commercial operations at its mine and process plant complex near Hoyt Lakes, Minn., by late 2008, pending completion of financing arrangements and receipt of regulatory approvals. Once fully operational it is anticipated that PolyMet will require approximately 70 megawatts of electric power, becoming one of Minnesota Power’s larger industrial customers. The PolyMet electric service agreement will require the approval of the Minnesota Public Utilities Commission.

Hoyt Lakes-based PolyMet estimates its project will cost $380 million to complete, creating up to 1,000 jobs during construction and at least 400 permanent, full-time jobs. The company intends to have its project financing in place, subject to receipt of permits, before the permitting process is completed.

Allete’s (NYSE:ALE – News) corporate headquarters are located in Duluth, Minnesota. Allete provides energy services in the upper Midwest and has significant real estate holdings in Florida.

Published December 12, 2006 by the Minneapolis/St Paul Business Journal