"As a part of this transaction, we will donate public use properties in Hoyt Lakes for the enjoyment of residents of Hoyt Lakes and the East Range," said Don Shippar, Minnesota Power chief operating officer. Shippar said his company will work with the Iron Range Resources and Rehabilitation Board, an economic development organization in northern Minnesota, to develop property near Giants Ridge, a resort on the Iron Range.

A subsidiary of Cliffs would pay $12.5 million to LTV to acquire the Taconite processing plant along with all property related to mining operations. The LTV mining operation was closed early this year after LTV filed for protection from creditors in federal bankruptcy court. The deal is subject to court approval. Minnesota Power is a subsidiary of Duluth-based Allete, which also has significant real estate holdings, a wholesale auto auction business and an auto dealer inventory-financing unit.