STATEWIDE ECONOMIC AND FISCAL EFFECTS OF THE DIRECT REDUCTION OF IRON ORE TO STEEL IN NORTHEAST MINNESOTA

The Minnesota Regional Development Simulation Laboratory (SIMLAB) was used to simulate statewide economic effects of three iron mining industry options--revitalization of the Lower Great Lakes states steel industry, gradual liquidation of this industry, and the direct reduction of iron ore to steel in Northeast Minnesota. Industry output, employment, and value added indicators for the 1970 and 1977 years are compared with corresponding economic indicators for the 1980-2000 projection period. Finally, mineral-related state tax revenue trends are presented. Changes in these trends which are associated with each of the three iron mining industry options are projected for the 1980-89 period