The Iron Range: A Tale of Two Industries
An Undergraduate Senior Thesis
Introduction
This thesis will analyze the changes occurring in the Iron Range economy of Northern Minnesota. More specifically, it will examine two common industries vital for a prosperous economy in the region: the dying mining industry and the growing tourism industry. The old economy based on mining partially cultivated the Northeastern Minnesotan landscape and is responsible for the culture that exists there today. This industry is still alive in the area, but is in constant threat of being replaced and shutdown.
The tourism industry has quickly sprung up in the area as a contender, and it provides jobs and revenue to the region. The main point of this thesis is to examine the decrease in the mining industry and determine if it is linked to the increase in tourism. Using the population of Northeastern Minnesota along with other demographic data, this thesis analyses additional reasons that the mining industry is decreasing while tourism is growing.
My project will incorporate the Northland region of Minnesota as the study area. All of the Iron Ranges are located in this region. However, I will mainly focus on the Mesabi Iron Range.
These seven counties make up the Northland region. They have also been referred to as the Arrowhead Region, Northeastern Minnesota, and the Iron Range.
Understanding the Iron Range
A Quick History about the Iron Range Region
A few billion years ago, the Algoman Orogeny occurred which formed mountains in the Northeastern Minnesota. Once these mountains were erected, they brought a vast amount of minerals upward, toward the surface with their formations. Eventually, a large sea formed and covered Minnesota, causing the mountains to erode. In addition, weathering occurred due to the water. The sea did not stay forever, and this caused the eroded iron sediment to compact into many layers on the sea floor. This formed the large iron and taconite deposits that occupy Northeastern Minnesota, which are the Biwabik Iron Formation and the Giants Ridge Batholith.
In 1866, two explorers, Henry Eames and Christian Wieland, discovered iron ore in the area and formed the Ontonagon Syndicate in an attempt to prospect the iron range. However, their attempts failed and prospectors went to the Vermillion Iron Range which was more accessible than the Mesabi Iron Range. The Merritt family of Duluth did not give up and soon found hematite formations near Mountain Iron, Minnesota. Due to the remote region at the time in 1890, the Merritt family developed railroads in the area under the name of Duluth, Missabe and Northern Railroad, or DMNR.
John Rockefeller soon invested heavily and eventually took over the Mesabi Iron Range. This led to heavy competition between Rockefeller, Henry Oliver, and Andrew Carnegie. The three eventually reached a deal which was that Oliver would mine the iron ore, Rockefeller would transport it, and Carnegie would ship it to steel mills. This agreement formed the United States Steel corporation, which became the world's first billion dollar company.
Due to the work conditions, strikes occurred against the three. These raised some wages and improved working conditions, but were largely ignored. From these, unions formed in the area, causing the region to support the democratic party due to these strong connections to organized labor unions. The growth of mining in the region formed many communities along the Mesabi Iron Range. Immigrants flocked to these communities from all over the United States and Europe. Some of these include Germans, Scandinavians, Slovenians, Italians, and numerous other ethnicities.
World War 2 demanded from the Iron Range a vast supply of iron. This created an economic boom in the region and caused more people to flock to work in the mines. However, by the end of the war, most of the natural iron ore deposits had been depleted. Facing an industrial and economic collapse in the region, scientists developed methods to harvest taconite. Taconite is considered a low-grade iron ore and demands more processing to mine it. This increased mining operation costs, so lawmakers lowered taxes on mining corporations in the region. The Minnesotan towns of Babbitt, Hoyt Lakes, and Eveleth all developed taconite plants which enabled mining to continue in the region for decades to come.
For decades, the region has been battling many issues. One issue is the conservation of the wilderness in Northern Minnesota, which contains millions of acres of forests, bogs, and lakes. Environmentalists are worried that mining in the region will negatively impact the surrounding wildlife and spoil the pristine lakes and forests. Another issue is the fact that the population of Northern Minnesota has been declining as people leave the area. Some travel to the Twin Cities (Minneapolis and St. Paul) in southern Minnesota, where jobs are bountiful. Other reasons include geopolitics, such as the competition with Chinese iron mines, the environmental laws regulating iron mining, and politics in the local area as well as state and national politics.
Northern Minnesota has been reducing mining jobs within the past few decades, but another industry has given rise. With the invention of the automobile, people from the Twin Cities have annually came up to enjoy the northern lakes and wilderness. Lake cabins and going "Up North" have since become a tradition and have risen in popularity. This has had the impact of creating more service and tourism based jobs on the Iron Range and in northern Minnesota in general.
Mining the Arrowhead Region
Types of minerals mined around Minnesota
Pictured to the right is an example of high-grade iron ore mined out of the underground Soudan Mine on the Vermillion Iron Range. It is also called Specularite, and is common to the Soudan and Tower area. Since this is high-grade iron ore, it requires more refining to extract the usable iron ore which can be very costly.
Pictured on the right, are chunks of low-grade iron ore called taconite. These ore deposits are common throughout the Mesabi Iron Range and are what is mostly mined now. Taconite is found close to the surface and is easily mined through open pit mining.
Once mined, taconite is transformed into small round balls of taconite ore. This makes the iron ore easier to transport and transform. Being low-grade iron ore, taconite is cheaper to produce and refine for steel mills compared to high-grade iron ore deposits.
Mesabi Range (Active)
The only active iron mining region in Minnesota is the Mesabi Range. It stretches from Grand Rapids, Minnesota to Babbitt, Minnesota. It is the largest iron range in the region. In 1902, underground mining began on the Mesabi Iron Range. It was cheaper to use open pit mining and to harvest the low-quality taconite to produce steel. Open pit mining became more popular compared to underground mining due to costs. The last underground mine closed in 1960. The Mesabi Range also has the largest open pit iron mine in the world, the Hull-Rust-Mahoning Open Pit Iron Mine.
Total mined iron ore since 1965: 2.5 Billion Tons
Cuyuna Range (Inactive)
The Cuyuna Range is a 68 mile stretch of land between Brainerd and Aitkin. Iron ore was found in 1903 and eventually 32 mines opened. The mines were mostly open pit and underground mining. After the Milford Mine disaster in 1924, underground mining began to become too dangerous for miners. The Cuyuna mines became inactive in 1984 due to the economic impact of taconite extracting on the Mesabi Range, as it was cheaper to mine taconite at the time. Cuyuna Country State Recreational Area now occupies the former mining sites, containing numerous trails and activities for tourists.
Total mined iron ore since 1965: 100 Million Tons
Vermillion Range (Inactive)
The Vermillion Iron Range located between Tower and Ely, Minnesota. The mines here required deep underground mines to reach the iron ore. Some mines were nearly half a mile underground and 11 mines were eventually opened. The last mines in the region closed in 1964 due to the economic challenges deep underground mining created and the high-quality iron ore being more expensive to refine. The Soudan Underground Mine State Park now occupies the Soudan Mine.
Total mined iron ore since 1965: 102 Million Tons
Current Mining Features in the Arrowhead Region
Active mining on the Iron Range. The blue polygons show prospective mining while the colored areas show current mines and their types of ore deposits. Also included on this map are locations and boundaries of Minnesota State Parks, National Forests, State Forests, and National Parks.
The Economic Importance of Iron Mining in Minnesota
Job density in Minnesota. (Source: MnDOT GIS )
In 2010, the Iron Range contributed more than $3 billion to Minnesota's economy. Mining also supported more than 11,200 jobs in the state. Nationwide, the Iron Range supports nearly 11 million jobs due the steelmaking and transportation of the iron ore produced. This accounts for roughly 16% of the United States' GDP for 2010. Iron mining corporations paid $152 million in 2011 for the state of Minnesota. $48 million went to local schools, University of Minnesota received $16 millions alone. Mining contributes about 30% of the GDP in the Arrowhead Region, compared to the 11% that tourism contributes. Mining jobs also have an estimated pay of $81,500 per year for employees that work in the mining industry. This is in comparison to the $23,000 that is the average yearly pay for tourism based jobs in Northeastern Minnesota.
Arrowhead Regional Jobs in Mining and Tourism
Comparison of Mining and Tourism as percentages of jobs per county
The map above depicts a comparison of mining jobs and tourism jobs by county in Minnesota. This shows the percent of jobs that mining and tourism comprise in each county. As shown by the map, almost all counties with a heavy reliance on tourism are north of the Twin Cities. In fact, Cook County is one of the highest areas reliant on tourism, with over 21% of all jobs being tourism based. In Northeastern Minnesota, four counties have over 12% of tourism-based jobs. Northeastern Minnesota in general has the highest concentration of tourism-based jobs.
As shown by the map comparison above, mining jobs do not account for a large number of jobs in Minnesota. Some counties have less than 0.25% of mining jobs in the local economy. However, 7% of jobs on the Iron Range are based around mining.
As shown on the map comparison above, areas with a high reliance on tourism jobs are closer to the Canadian border or are in a few select towns. These towns include Duluth, Two Harbors, Chisholm, Hibbing, and Ely where between 15 to 31% of jobs in those areas are based on tourism.
Also shown on the map comparison, mining jobs tend to occur nearest to the Mesabi Iron Range. The dark blue areas show where there are more mining jobs than tourism in those census blocks.
Mining Tonnages
Iron ore tonnages according to the Duluth Seaway Port Authority
As shown to the left, there is a significant decrease in the annual iron ore tonnages from 1960 to 2019. The orange trendline shows that the annual tonnages shipped out of the Duluth Seaway Port Authority have been on a decreasing trend. In 1965, the tonnages leaving the port were about 36 million tons, while in 2019 they were down to 20 million tons. The lowest amount of tons shipped out was roughly 8 million tons in 2009. That is a decrease of about 28 million tons in 44 years. The trendline forecasts a continuous decrease in iron tonnages in the years to come.
Mining Jobs
Yearly average of mining jobs (Data Source: MN Department of Employment )
There is a continuous decrease in the average number of mining jobs each year. The trendline is negative, meaning that mining jobs are continuing to decrease in the area. The lowest year was in 2009, with an average of roughly 7,400 jobs in mining. The highest was in 1999, with an average of 11,184 mining jobs. However, since 2013, the region has seen an increase in the average number of mining jobs. The data from 2010 to 2019 suggests there is growth in mining jobs. Though the trend is decreasing, that could change with the current rise in mining based jobs.
Tourism Jobs
Yearly averages of tourism (Hospitality and Leisure) jobs (Data Source: MN Department of Employment )
The yearly averages of tourism jobs in the counties that make up the Duluth area, have continued to increase since 1990. In 29 years of tourism data, only five records have shown decreases in tourism jobs. Each year since 1990, the tourism industry has been increasing by an average of 140 jobs per year. This growth is projected to continue for this industry.
Is there a link between mining job loss and tourism job gain?
I conducted a linear regression test to figure out if there is a correlation between the negative growth in mining jobs and the positive growth in tourism jobs. I used the program SPSS to run the linear regression test and analyze the data from the results. I was expecting to find that the average mining jobs and tourism jobs were significantly related, explaining the disparities of the employment of those two industries.
Linear Regression between Average Jobs for both Tourism and Mining
As shown to the left, the regression between the yearly average mining and tourism jobs does return a significant relationship. These results suggest that the loss of mining jobs is likely related to the increase in tourism jobs. Since the ability to predict trends based on this regression test is only a low explanation of 16%, one should exercise caution that this data is related.
Population Concerns
Population density of the state of Minnesota. (Source: U.S Census Bureau)
The decrease of mining jobs and the increase of tourism based jobs could be due to the aging and small population that occupies Northeastern Minnesota. Many areas of Northeastern Minnesota are below 1 to 10 people per square mile, meaning that the population is smaller and less dense than elsewhere in Minnesota. Due to the lack of population, this would cause a limited amount of jobs in an area, such as the case for Northeastern Minnesota.
Data Source: MN Department of IRRRB
The future projection of the population that is 4-17 years old is expected to continue to decline. This would cause less workers in the long term future and even in the short term. Without a young population to replace the older population, population in Northeastern Minnesota will likely continue to decrease, as will the amount of jobs in the area.
Data Source: MN Department of IRRRB
The working age population, 18-64, has seen many fluctuations in Northeastern Minnesota. This is due to mining booms and the development of the land. However, by 2030, working age populations are going to hit there lowest that Northeastern Minnesota has seen since before 1950. This will continue to cause less jobs in the area due to a lack of eligible workers.
Data Source: MN Department of IRRRB
With a decreasing projected population that is increasing in age, less workers and children will be in the area. This itself could be causing a decrease in mining jobs due to the fact that miners with the qualified skills are retiring or leaving the area. Since there is not an influx in working age workers, this could also mean less qualified people to work on mines. Mining jobs require schooling and training while tourism jobs don't require as many qualifications and are easier to get. This also ties into the fact that mining jobs produce more income while tourism jobs do not. So, while mining continues to decrease, the population in Northeastern Minnesota will continue to be older than the rest of the state.
Mining Tourism
Mining has had significant impact on the Minnesotan economy and history. Another way it is influencing Minnesota is through tourism. It does appear that mining jobs and iron ore tonnages are decreasing on the Iron Range, and it also appears that tourism is increasing. However, tourism could also be increasing due to the way mining plays into tourism. Recreational trails now run their courses through old mining pits and people are now able to take tours of old mining operations. Through these experiences, people are being attracted to learn about the areas mining history and how mining has changed the landscape. They are now taking the opportunities that mining has provided and are now turning them into attractions that will draw thousands of tourists to them.
Iron Range Attractions
Depicted in the graph above are the top tourist destinations along the Iron Range and outside of the Duluth metro area. The Duluth metro area was not included as the economy is not as dependent upon mining and logging and is able to survive by service industries. As shown above, mining has had a significant impact on tourism locations on the Iron Range and many of the current locations have a strong connection to mining. These could be due the influence of mining history, recreational activities that occupy past mining locations, and tourism locations that are directly involved around mining activities. Below is a chart depicting the type of attractions and what they are mostly concerned with.
Table of Attraction Types
From the table above, 11 of the tourist attractions on the Iron Range deal with cultural aspects, such as cultural museums, local influential figures, or memorials. However, the second most populous tourist attractions are those revolved around mining. These could be places such as the Soudan Underground Mine State Park, to drill sites, mining museums, and other things that center on the topic of mining.
Mining Tourism in Northeast Minnesota
Lake Vermilion-Soudan Underground Mine State Park
Slip on a hard hat and travel a half mile underground for one of our exciting tours in Minnesota's first iron ore mine. Experience the life of a miner from the last century or learn about the research being conducted in the mine or see how the rocks showed the miners where to find the iron ore. Public tours run daily Memorial Day weekend through September and weekends into October (some tours are available less often -- call the park for full details). Group and educational tours are available year-round.
Activities
- Mine Tours and Hiking
- Campground and Day Use Areas
- Historic Site
- Lake Recreation and Public Water Access
- Geologic Formations
- Birding and Wildlife Watching
Cuyuna Country State Recreation Area
This area of former mining pits and rock deposit stockpiles now boasts regenerated vegetation and crystal-clear lakes that draw a wide range of recreation enthusiasts including kayakers and scuba divers. Twenty-five miles of natural shoreline can be explored by boat or canoe and anglers with a trout stamp can cast a line for trout, northern, bass, crappie, or sunfish in the park's dedicated trout lakes.
Activities
- Camping
- Trout Fishing
- Canoeing
- Mountain Biking
- Scuba Diving
- Fat Biking
Minnesota Museum of Mining
Locally operated, the Museum of Mining has a large collection of mining equipment donated by mining companies in the area, from the early days of men and mules, to more modern giant Euclids. The Great North Road is a glimpse of American industry as the steam railroads began giving away to diesel power. You will see mines, a sawmill, factories and warehouses.There is also a spot to enjoy a picnic and the feel of the great north woods.
Hull-Rust-Mahoning Mine View
It has been called the “Grand Canyon of the North”—a fitting title for the world’s largest open pit iron mine. The Hull-Rust-Mahoning pit actually began as separate mines, named for their owners, first dug in 1895, that gradually merged into one. Today this enormous pit measures 1.5 by 3.5 miles with a depth of 600 feet. Because of its size and the important developments that took place here, the Hull-Rust-Mahoning mine played a key role in making Minnesota the leading iron-ore producer in the country.
Mesabi Trail System
The Mesabi Trail is just over 85% complete, with over 135 miles of the planned 155 miles of paved trail done. When finished, the trail will travel from Grand Rapids to Ely - the Mississippi to the Boundary Waters.
The terrain varies from hilly in the west to a bit flatter in the east. A few hills will test your stamina going up and your brakes going down - none greater than an 8% grade. Take a virtual tour of the entire trail, section by section, to get a better idea of the terrain - or check out the bottom of our paper map for an elevation chart. Be advised - this is NOT a rails to trails conversion trail...it is not flat & straight.
Conclusion
A mine operated by PolyMet Mining Corp. (Source: Jurist .org)
The Iron Range will continue to see the trend of losing jobs in mining and gaining jobs in tourism. This trend will hurt the local economy as mining jobs pay nearly four times as much as tourism based jobs. Mining jobs also require skilled and trained workers, while tourism jobs do not. This loss of skill will continue to draw jobs away from mining and toward lower skilled tourist jobs. An aging population adds to the economic stress, as retired people do not contribute to local jobs and are more likely to rely on economic assistance than age groups. Since the amount of working aged people is going to continue to decline, there will be a loss of workers for mining corporations.
Bicycle trail on the Redhead Mountain Bike Park near Chisholm, Minnesota. (Source: DL-Online )
In a more positive light, mining tourism is picking up on the Iron Range. People who are visiting the Iron Range tend to stop at cultural centers and places that have a direct relationship with mining. In a sense, tourism is being helped by mining while not necessarily helping to increase mining jobs on the Iron Range. In the future, I expect more places to open that are centered around the role mining played on the Iron Range and help educate people about the importance that mining once had on the Iron Range. Mining jobs will likely decrease in the future, as tourism takes a stronger hold on the local economy Again, mining job loss doesn't have a strong link to tourism job gain, but mining is helping to improve the tourism.
Iron Range Websites and Videos
Caterpillar 797F Mining Truck in comparison to a group of people
For further information regarding Northeastern Minnesota and the Iron Range, please visit any of the following websites;
Watch the videos below for more information about the Iron Range's history and tourism.
Iron Range Tourism and Mining
Aerial Tour of the Minnesotan Iron Range
Minnesota's Lost Mining Towns Documentary
A view of the Hull-Rust-Mahoning Mine View (Source: Sehinc )
Resouces and Citations
USGS. “The Mineral Industry of Minnesota.” Www.Usgs.Gov, www.usgs.gov/centers/nmic/mineral-industry-minnesota. Accessed 1 May 2020.
IRRRB. “IRRRB at 75.” Mn.Gov, 2016, mn.gov/irrrb/assets/IRRRB%20History%2075%20Book_tcm1047-342164.pdf. Accessed 21 Oct. 2020.
Saxhaug, Jan. “Prescription for a Healthy Economy.” Mn.Gov, MN Employment and Economic Development, June 2014, mn.gov/deed/newscenter/publications/trends/june-2014/healthy-economy.jsp. Accessed 18 May 2020.
Hendrickson, Short Elliot. “Economic Impacts of PolyMet’s NorthMet Project.” Https://Conservancy.Umn.Edu/, University of Minnesota Duluth, 2005, conservancy.umn.edu/bitstream/handle/11299/203291/BBER%20Report%20Economic%20Impacts%20of%20PolyMets%20NorthMet%20Project%20and%20other%20Industrial%20Projects%20of%20Minnesotas%20East%20Range%20Communities.pdf?sequence=1&isAllowed=y.
USGS. “Mineral Resources Data System: By Commodity.” Mrdata.Usgs.Gov, mrdata.usgs.gov/mrds/map-commodity.html#home. Accessed 21 Oct. 2020.
US Department of the Interior, and US Geological Survey. 2014 Minerals Yearbook: MINNESOTA [ADVANCE RELEASE]. USGS, 2014.
Minnesota Department of Natural Resources. “Lands and Minerals List of GIS Data, Digital Print Maps, & Web Maps.” Minnesota Department of Natural Resources, www.dnr.state.mn.us/lands_minerals/gis_data_maps/index.html. Accessed 17 Sept. 2020.
Huang, Ganlin. “Mining and Tourism: Comparing Spatial Patterns, Socioeconomic Contributions, and Environmental Impacts in China.” University of Vermont, 2008.
O’Neill, Kendra. Bridging Mining-Scarred Landscapes and Nature- and Resource-Based Tourism and Recreation in Northern Ontario. 2015.
Iron Range Tourism Bureau. “Family Fun Activities | Northern MN | Iron Range Tourism Bureau.” Ironrange.Org, ironrange.org/. Accessed 21 Oct. 2020.
“Hull-Rust-Mahoning Mine Historical Marker.” Historical Marker, 16 June 2016, www.hmdb.org/m.asp?m=2833.
Ralph W. Marsden, "Geology of the iron ores of the Lake Superior region in the United States," in, John D. Ridge (ed.), Ore Deposits of the United States, 1933–1967 (New York: American Institute of Mining Engineers, 1970) 493.
