Iron Range Focuses on India

By Beth Bily

Iron Range Resources Commissioner Sandy Layman sees parallels in the history of immigration to Minnesota’s Iron Range when ore was first discovered and today as the region stands ready to embark on its first “mining to steel making” business venture.

“The Iron Range became of the nation’s foremost melting pots,” said Layman of the late 19th and early 20th century influx of immigrants from more than 40 nations. “The ethnic groups eventually became one. They mined the iron ore, which made the steel that built this country.”

Layman kicked off the December 11, 2008 “Focus on India” conference at Hibbing Community College. She, like many others, see the Iron Range in the midst of another change in culture – this one coming as the Iron Range potentially partners globally in the biofuels and wind energy industries as well as with India-based Essar Steel, which is developing the first mining to steel operation in Iron Range history.

The Focus on India conference was the first of Hibbing Community College’s Global Understanding Series. It was designed to “encourage multicultural awareness, strengthen business and personal relationships and explore opportunities with India that offer sustainable advantages for our region,” according to the conference planning committee. A second such exchange, with a focus on Mexico and Latin America, is in planning stages for 2009.

While many of the panelists were native Indians, most of the several hundred attendees were native Iron Rangers, looking to learn how to do business better with a new global partner.

Indian Opportunity, Investment:

The morning keynote speaker, Banashri B. Harrison, Commerce Minister, Embassy of India outlined the opportunities for the several hundred conference participants. India has the third largest pool of technical and scientific workers, had more than $40 billion in bilateral trade in 2007 and despite worldwide recession is expected to grow its economy by about 7 percent in 2008.

India is the largest democracy in the world. While China has emerged as a world economic force at a more rapid rate, India’s growth has been privately fueled. Because it is a democracy, the country also offers greater economic and political stability than many other so-called emerging nations. Likening the recent Mumbai terror attacks to 9/11, Harrison said, “It doesn’t make India a worse place for investment.”

Harrison told those at the conference that India’s influence in the world marketplace goes far beyond technology outsourcing and is mutually beneficial. “India-U.S. trade is a two-way street. Indian companies are finding it very profitable to invest here,” she said.

Such is the case with Essar Steel Minnesota, which plans to develop the $1.6 billion mining to steel operation north of Nashwauk, MN in Itasca County. A day of breakout sessions, business perspectives and cultural exchange ended with affirmation that despite global economic downturn and sharp decline in worldwide steel demand, the project is still on track.

Essar’s North American President Madhu Vuppuluri told conference attendees that his company expects steel demand to rebound by the end of 2009, fueled in part by stimulus packages in several countries.

Essar Steel Minnesota, which will have a 4.1 million tons annual pellet production capacity, 1.8 million tons direct reduced iron capacity and 1.5 million steel slab production capacity once completely operational in about five years, will play a sizeable role in Essar’s North American footprint, serving as a feeder for the integrated Algoma Steel mill, in Sault Ste. Marie, Ontario. The company acquired that property, like Essar Steel Minnesota, in 2007.

In addition to the pellets the company will export, the phased development is expected to create about 500 permanent jobs and thousands of construction jobs. The project broke ground in September and some early construction work has already been completed or is underway such as removing trees, site surveying and soil investigation.

While the Essar Steel Minnesota development may have prompted India’s selection as a focal point, discussion about how the Iron Range and India move forward in the future went far beyond the scope of steel making.

Breakout sessions offered perspectives from Minnesota companies already actively engaged in business with India, a glimpse into Indian history and culture with HCC instructor Steve Potts and perspective from Indian natives who are currently living and working in Minnesota. But, perhaps the event that brought the two countries together best was lunch – a taste of Indian cuisine and a sampling of traditional Indian dance.

The day’s events also concluded with food and dance. Bombay (Mumbai) native Raghaven Iver, guest chef for the event and author of “660 Curries” signed his work during a Tour of India reception. Following the reception, the classical Indian music and dance troupe, Minneapolis-based Ragamala, performed.





Conference sound bites:

Here’s what some conference participants and attendees said at and about Focus on India:

“We today open our arms to the people of India.” – Sandy Layman, Iron Range Resources Commissioner.

“I’m very pleased that American businesses that have found their way to Beijing have realized that (Indian cities) are not just stopovers.” – Banashri B. Harrison, Commerce Minister, Embassy of India.

“India is a people game. You have to establish relationships in order to do business in India.” – Robert Banks, vice president, Ikonics International. Banks was a panelist in the discussion on “Doing Business in India” has made 50 to 60 business trips to India.

“Minnesota welcomes you for what you have to offer, regardless of where you are from,” Chandra Mehrotra, a professor of psychology and leader of the College of St. Scholastica’s Aging Institute. Mehrotra was an Indian perspective panel presenter. He has lived in Duluth since 1970.

“India today is ageless, timeless, eternal India, but it’s also on the verge of great change.” – Steve Potts, instructor of history and political science at Hibbing Community College.

“(With North American investment) We will emerge as one of the very strong players in the world in steel.” – Madhu Vuppuluri, president Essar North America.

“How could you not enjoy this day? I didn’t know what I didn’t know.” - Sue Collins, president of the Northeast Higher Education District.


Caption for picture above:
Photo by Beth Bily. Hibbing Chamber of Commerce
President and CEO Lory Fedo talks with Focus on India panelist
Shyamala Ganesh during a break between sessions. Ganesh is a
registered dietician and director of the Dietetic Internship Program
at the University of Minnesota Medical Center, Fairview. She resides
in Rogers, MN with her husband and two children.