Feb. 9--Undaunted by plummeting ore prices and a faltering steel industry, several multimillion-dollar mining initiatives continue to march forward on Minnesota's Iron Range.

Tony Robson, an analyst for BMO Capital Markets, said global iron ore pellet contract prices are expected to tumble by 20 percent to 40 percent in 2009.

But Peter Kakela, a Michigan State University taconite industry analyst, pointed out that pellet prices are declining from record highs and still look to remain historically strong.

As tough as conditions may be at present, the ongoing interest in new Iron Range projects indicates that at least some in the industry remain bullish about the long-term prospects for profitable iron-mining ventures in northern Minnesota.

So far, Chris Nelson, mining section manager of the Minnesota Pollution Control Agency, said he has seen no sign of anyone easing up on efforts to obtain needed permits for proposed mining developments in the region.

"They all still seem to be high-priority projects," he said. "I haven't seen anyone stepping back or slowing their demand for permits."

The first of these projects likely to become reality involves reclaiming iron found in old mine tailings.

MAGNETATION INC.

Just this past week, Magnetation Inc. began processing tailings near Keewatin with a mobile unit capable of operating on a commercial basis, said Larry Lehtinen, the company's chairman.

The operation is fully permitted, and Lehtinen said he expects to begin full commercial production of iron concentrate in a matter of weeks. He already has a customer, also a start-up operation, lined up to receive the material.

With the help of a proprietary patent-pending process, Magnetation aims to reprocess tailings from old natural ore mines that were active on the Range until the 1950s. These tailings often contain an iron content of 30 percent to 45 percent.

Lehtinen believes the portable processing unit his company has constructed will be capable of producing 225,000 metric tons of iron concentrate per year.

Iron concentrate is the primary component of iron ore pellets, but it also can be used to produce slab steel or iron nuggets.

All told, Lehtinen anticipates Magnetation will have sunk $9 million into the project by the time it's in full commercial production. The company currently employs about 20 people directly and an equal number of contractors, he said.