PROJECT'S BENEFITS

High Paying Jobs Substantial Tax Revenues

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High-Paying Jobs

The on-going manpower requirement for the Birch Lake Project is currently estimated at 550 full-time employees, which includes both staff and hourly workers.  These positions would endure for the life of the mines, estimated to be at least 24 – 26 years.  Additional exploration at Birch Lake’s Bob Bay site could substantially increase the life of the mine.

Anticipated Birch Lake Project Manpower Requirements

Department Hourly Staff Total
Mine – Birch Lake 147 18 165
Mine – Maturi 146 22 168
Processing Plant 58 13 71
Maintenance 85 11 96
Technical Services   28 28
Admin (Mgt, HR, Safety, Purchasing)   24 24
Total 436 116 552
Source: Scott Wilson, RPA, Oct 2006 estimate

The hourly positions would constitute some of highest paying blue-collar jobs available in the U.S. today.  Hourly underground and processing plant labor will consist primarily of skilled and semi-skilled workers such as heavy equipment operators, mechanics, electricians, pipe fitters and so on.  Pay scales will be based on prevailing wages for miners in the area.

Staff positions will largely constitute skilled professionals such as engineers, geologists, administrators and supervisors .  It is anticipated that compensation packages for all positions will include competitive benefits.

To fill these positions with qualified personnel, Franconia plans to provide on-the-job training for the mine and processing plant workers.  The Company is also working with the Mesabi Range Community College (in Virginia and Eveleth) to establish two-year associate programs in mining and processing, which would better qualify employees for leadership positions such as foremen.  Community college level pre-engineering programs will be aimed at preparing people for engineering, metallurgy and geology four-year degrees and eventual jobs in Minnesota’s new non-ferrous mining industry.

In addition, it’s estimated that at least one additional ancillary job will be created in nearby communities for each permanent employee, for a net total of over 1100 permanent positions.  During the estimated two-year mine construction period, up to 1000 construction jobs would be generated.

Currently, Franconia jobs total the equivalent of about 29 full-time positions including staff, consultants and contractors.  Most workers live in the area, with many in Babbitt, making Franconia one of the town’s larger non-government employers.

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STAKEHOLDERS' COMMENTS

In our effort to establish a constructive dialogue regarding the Birch Lake Project with citizens, groups and organizations, Franconia welcomes all communications.  This sampling of comments and responses is representative of the email, mail, and phone calls we have received.  Please contact us to submit your input and questions.