Commission briefed on proposal to invest $2 million in Hill Annex remediation to unlock roughly $33–34 million for Permanent School Fund
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Summary
School Trust Lands staff asked the commission to consider an appropriation of about $2 million to remediate the Hill Annex Mine site; proponents said remediation and SCRAM (stockpile reclamation) mining could yield roughly $33–34 million to the trust over a roughly 10‑year period, with DNR permits currently on public notice.
The Legislative Permanent School Fund Commission heard a proposal to invest roughly $2 million to remediate the Hill Annex Mine site and prepare it for mining of stockpiled ore, a step proponents said would unlock about $33–34 million in revenues for the Permanent School Fund.
Aaron Bridal, director of School Trust Lands, told the commission the office has leases for the site and is seeking an appropriation to do remediation work that would allow stockpiled iron ore to be processed. "We are looking for an appropriation to invest for some remediation work. That remediation work, once we get to mining, would result in roughly $33,000,000 to the trust from 1 site," Bridal said.
Commissioners and staff described the plan as primarily SCRAM (stockpile reclamation) mining, a remediation‑focused approach that removes and processes legacy waste rock from earlier operations. Proponents said the work would clean and remediate the site and could enable further mining activity (and additional revenues) after initial stockpile processing. The presenters identified Calumet Mining as the company referenced for processing the stockpiles.
Officials said the project is modeled as roughly a 10‑year effort to realize initial revenues from the stockpiles, with additional resources potentially available beyond that period as leases and in‑ground resources are developed. Participants discussed local revenue implications, including royalties and lease payments to the trust, and production and occupation taxes that would flow to local entities and the Iron Range economic authority.
Commissioners asked about environmental impacts and public review. Proponents said SCRAM mining operations include remediation and restoration obligations and noted that the Minnesota Department of Natural Resources has permits on public notice; an agency representative confirmed permits must be in place before operation. Advocates for the proposal said the remediation would improve legacy mine sites while generating revenues for schools and regional economic benefits.
No appropriation vote occurred at the meeting; commissioners asked staff to draft bill language and consider timing. Some members said the project is time‑sensitive because construction and cleanup seasons limit when remediation can occur and because delays could affect a company’s ability to proceed. The commission also discussed potential co‑funding from the Iron Range economic authority and other local funding sources.
Next steps: staff will continue drafting bill language and provide more detailed cost, timeline and permitting information to the commission for future consideration.
