Minnesota cuts royalty rates for taconite producers

Minnesota officials are giving a break to three taconite producers by retroactively lowering their royalty rates on ore mined on the Iron Range.

Wednesday's decision will cost the state an estimated $890,000 that would have come in between this April and next June, according to a Department of Natural Resources estimate.

The state gave the same break earlier to a fourth producer.

The State Executive Council voted 4-1 for the rate break, with Auditor Rebecca Otto the lone dissenter. She questioned whether money would go to company shareholders and executives rather than keep mine workers on the job.

A domestic steel industry downturn has led to production slowdowns at mines and layoffs production slowdowns at mines and layoffs in northeastern Minnesota. Lawmakers are contemplating a special session to extend unemployment benefits for idled steelworkers.