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Message: Patience has its rewards

After 12 years on ice, ore mine comes back to life in Iron County

Article Last Updated: 10/02/2008 03:16:16 PM MDT

Posted: 3:03 PM-
CEDAR CITY - Iron County's namesake is being mined by a Utah company with plans to sell more than $1 billion worth of high-grade ore to China during the next five years.
"This is the richest ore I've ever seen," said Brad Smith, a mining engineer with Palladon Ventures Ltd., a Salt Lake City-based company that owns the 6,600-acre Iron Bull Milling and Mining operation located 16 miles west of Cedar City.
The open-pit mine, which closed in 1996 under Geneva Steel, became active again on Sept. 11 with a 25-person staff and plans to eventually employ about 120 workers.
Once scooped out of the
MINE'S BACK

Iron County will host a Grand Blast ceremony at the mine for former employees at 11 a.m. on Oct. 23.
More information about the mine is at: http://www.palladonventures.com
ground, the ore - black as coal and easily distinguishable from the surrounding white-waste rock - will be crushed into chunks a tad smaller than a baseball.
The ore is then moved to a stockpile by conveyor belts. Under the stockpile, the coal drops onto another conveyor belt stretched through a 450-foot long underground tunnel that carries ore to a large hopper called a tipple.
Rail cars will sit under the tipple and be filled with crushed ore.
Palladon President and CEO Donald Foot said his company wants to mine two million tons annually before expanding to 4 million tons.
The company also wants to build a concentrator to pulverize the
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ore to powder. Once waste mined with ore is removed, a magnet is dragged through the powder to collect iron.
"There are no chemicals involved in the process that yields a high-grade concentrate," Foot said.
Foot bought the mine for $10 million at a 2005 bankruptcy sale and invested about another $10 million to start operations. The mine received many grandfathered permits.
Palladon has contracted with Hurricane's Gilbert Development Corp. to conduct mining operations.
Mining Superintendent Keith Gilbert said he is a third-generation miner.
Gilbert said his family's business mined the ore for the previous owner and just walked away when it closed. Coming back was just like picking up where they left off.
Gilbert Development replaced much of the equipment including the crusher and incorporated new technology so the mining is conducted through automation, Gilbert said.
Foot said rail operations should begin in two months and will fill a train about every other day.
He said the rail tracks to the mine will connect with Union Pacific's main line about 10 miles away. Ore is shipped to Long Beach, Calif., before being loaded onto a China-bound ship with room for 130,000 tons of ore.
Foot said China Kingdom will process the ore at a Beijing-area mill.
China Kingdom is a private company with diverse interests including textiles and poultry, Foot said.
Cedar City Economic Development Director Bryan Dangerfield said Thursday the plant will pay well above Iron County's average wage of $25,000 a year for nonagricultural jobs.
"This is huge to have the mine online when there is so much negative economic news in the world now," Dangerfield said. "This is positive news."
He said beside paying well, he expects other business will also benefit.
"There could be a lot of spinoff business we hope," he said.
Cedar City Mayor Gerald Sherratt said the mine revives the tradition that built Iron County.
"For half a century the economy of the county was built around the iron mines, so it's good to have them back on board," Sherratt said. "It will pay good wages, taxes and contribute to growth."
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