Utah's Iron Ore Industry
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This page was last updated on December 24, 2020.
(This is a work in progress; research continues.)
From Utah Mining Association's August 1967 "Operations and Economic Review":
Iron ore was first discovered by an exploration party headed by Parley P. Pratt in 1849-50. A crude foundry was built by the pioneers at New Harmony in 1852 and began producing in 1853. It was soon abandoned. The ore deposits remained undeveloped because of distance from markets, transportation difficulties and lack of adequate treatment plants in the West. The Iron Springs district was organized in 1871 and reorganized, 1879. The Pinto district was organized in 1868, a few miles southwest of Iron Springs. A crude furnace and foundry were erected by the Great Western Milling & Mining Co. in 1868. They produced about 400 tons of pig iron before closing in 1876 or 1877.
The Ironton blast furnace of Columbia Steel Corporation (purchased by the U.S. Steel Corporation in 1930) near Springville and the Los Angeles and Salt Lake Railroad's Iron Mountain-to-Cedar City branch line were completed in 1923-24, and commercial scale mining of the Iron Mountain deposits began. The Columbia Steel Corp.'s operations were the first to successfully use coke made from Utah coal. The U.S. Defense Plant Corporation built the Geneva Steel plant in Utah County during the 1942-44 period, and the Iron County ore reserves assumed new importance. The plant was taken over by U.S. Steel Corp. in 1946. Although Iron County's iron ore production has decreased since U.S. Steel began shipping pelletized iron ore to the Geneva Works from Atlantic City, Wyoming a few years ago, the output is still sufficient to give Utah fourth place in the ranking of iron-producing states.
Large areas in the southern part of the county are underlain with iron deposits. Most of the good commercial grade ore occurs in disconnected masses in a belt about 20 miles long and 1-1/8 miles wide, stretching from northeast to southwest along the eastern and southern slopes of Three Peaks, Granite Mountain and Iron Mountain. Bureau of Mines experts in 1957 estimated the Iron Mountain area reserves at 350,000,000 tons. Of this total, 100 million tons was classified as recoverable at this time, and the Bureau predicted greater reserves of high grade ore at deeper levels. Efficient mining and low cost concentration will be required to develop the remaining 250 million tons. The richest discoveries have been made in the Iron Springs, Iron Mountain and Pinto districts and in these localities there has been the heaviest production.
All-time output to 1965 was 72,273,000 tons. The U. S. Steel Corp. mines its own iron ore for shipment to the Geneva plant in Utah County. The CF&I Steel Corp. properties furnish ore for the Pueblo, Colorado. steel plant of CF&I, the actual mining being done by the Utah Construction & Mining Co. Utah Construction also has its own Iron County properties from which it ships ore to Geneva Works in Utah, to Pueblo, Colorado, to Kaiser Steel Company's Fontana, California plant and sometimes to foreign countries. Utah Construction completed a $1,300,000 plant at its Iron Springs open pit mine for upgrading the low grade ores of the area. Some iron ore and concentrates are shipped to cement plants in Utah, Idaho and the Pacific Northwest, where it is used to impart special properties to cement.
The following description comes from the U. S. Bureau of Mines, Report of Investigations (R. I. 4076), "Iron Deposits, Iron County, Utah," published in May 1947:
Iron ore was discovered in the Pinto-Iron Springs district by the early pioneers. A small furnace was erected in the area in 1874, and was operated until 1876. The first iron ore was mined from the Duncan ore body, and the fuel used at the smelter was obtained from coal mines in the Harmony Mountains. The operation was unsuccessful, and no ore was mined from the district for several years. About 1899 the Colorado Fue1 & Iron Co. became interested in the district and acquired some property. Some prospecting was done under their direction both on ore bodies at Iron Mountain and east of Paragonah. Iron ore was shipped from the Wah Wah Range to be used as flux in the lead smelters at Frisco and Newhouse during their operation.
Little interest was shown in the district until 1923, when the Columbia Iron Mining Co. commenced operations. Mining first began on the Pioche and Vermilion claims. A tunnel was driven in the ore, and raises were run to the surface. Ore was mined and passed through these raises in a modified glory-hole system. Later, a steam-shovel operation was started by the Milner Corp. on property owned by them and by the Colorado Fuel & Iron Co. in the Desert Mound area. In 1935 operations were moved to Iron Mountain, and mining in the Black Hawk pit was started by the Columbia Iron Mining Co. In 1942 three other ore bodies were opened up and prepared for mining by the Columbia Iron Mining Co. The Duncan ore body was stripped by the Colorado Fuel & Iron Co., and mining was begun in 1942. In 1944 operation was started on the Lindsay Hill ore body, and shipments were made to Fontana, Calif.
Mark Hemphill wrote the following about this photo:
Columbia Steel Co.-Iron Mountain P.17 -- Utah Division of State History Digital Collections
Until Atlantic City opened in 1963, the Iron Springs Mining District at Iron Mountain, Utah, was the only source of iron ore for Columbia Steel at Ironton, and the Defense Plant Corporation (U.S Steel after WWII) Geneva Works. Ironton was immediately south of Provo. The Provo Yard leads today run past the site.
The Ironton plant ran from 1924 to 1966. It produced only pig iron; it had no blast furnaces and no rolling mills. Its original role was to provide pig iron to Columbia Steel's blast furnaces at Pittsburg, California. Later it provided pig to Geneva, as well as to Kaiser Steel.
Both UP and D&RGW served Columbia Steel at Ironton, and both Santa Fe and SP served Columbia Steel at Pittsburg, so in theory it could have had the following routings:
My bet is that UP-SP had most of the pig iron traffic. Though rates would have been identical either way, the UP-SP service would probably have been better. But I would not be surprised to see it moving on multiple routes at the same time, or varying back and forth, as one railroad provided better cars and service then lost interest, and so forth.
Here's a couple of useful photos that might help:
The first shows cold pig being loaded from stockpile into a UP GS gondola:
The second shows hot pig going direct from the pig machine into UP GS gondolas:
Columbia Steel at Pittsburg had a capacity in 1938 of 229,000 tons/year of open-hearth steel. The open-hearth charge was probably 45% pig iron and 55% scrap, so 2,151 50-ton carloads of pig iron a year would be required, when the mill was running full-out. Or about 6 cars a day.
Photo of UP ORE-70-2 no. 8000 -- lifted from The Streamliner, Fall 1994
Iron ore was discovered in the southern part of the territory in 1850, by Parley P. Pratt, and steps were immediately taken to develop the industry. In his message to the legislature of the State of Deseret on December 2, 1850, Brigham Young called attention to the discovery of iron ore and urged an appropriation to aid in its development. On December 3, 1850, Iron County was organized. (Journal History, December 3, 1850)
The Cedar City Iron Company was organized and was making some progress, but was short of capital and workers. The Deseret Iron Company was formed in Liverpool, England, early in 1852. Iron was actually produced in the fall of 1852; but due to high costs, Indian depredations and floods, the experiments finally had to be acknowledged a failure in 1857 - one which had cost the territorial government about $150,000. (Anna Viola Lewis, "Development of Mining in Utah", unpublished Master's thesis, Department of History, University of Utah, 1941, p. 25.)
At the last spike ceremony for Utah's first railroad, the Utah Central, on January 10, 1870, both the mallet and the last spike itself was made of Utah iron, by James Lawson at the LDS church's blacksmith shop. The spike was so highly polished that it appeared as silver. "The mallet was elegantly cased, bearing on the top an engraved beehive surrounded by the inscription, 'Holiness to the Lord,' and underneath the beehive were the letters U.C.R.R.; a similar insignia consecrated the spike." (Our Pioneer Heritage, Volume 10, page 142)
In September 1873, the iron ore mines of Iron County were the stated destination of the Iron Mountain and Utah Valley Railroad. Its stated route was 273 miles from Iron City, north to a connection with Utah Southern, whose line from Salt Lake City was by September 1873, at American Fork, at the northern end of Utah Valley. The line was not built. (Utah Corporation Index 4292)
Although the Utah iron mines were producing iron ore for local use, transportation of the iron ore from the south to the northern cities was a factor in it not being used. Importing iron ore from the east was still less expensive, as shown by a traffic report for the Utah Central from March 1874, which showed that just over 273 tons of iron ore was imported during that month. (Our Pioneer Heritage, Volume 10, page 144)
(This shipment would have been over Utah Central's route between Salt Lake City and Ogden, because the rail line south from Salt Lake City to Utah Valley was by way of the Utah Southern Railroad, which by December 1874 had been completed between Salt Lake City and Spanish Fork, at the southern end of Utah Valley.)
January 27, 1875
"The Utah Western Railroad Company is about to commence the manufacture of ten flat cars." The iron parts to be cast of Utah iron, and Utah lumber to be used also. (Deseret Evening News, January 27, 1875)
The rails of Utah Southern Extension Railroad were completed to the Horn silver mine at Frisco on June 23, 1880, just 60 miles north of Iron Mountain. The Utah Southern Railroad Extension was an 1879 extension of the Utah Southern Railroad, and was controlled by Union Pacific, which very soon also took control of both Utah Central and Utah Southern. In 1881, UP consolidated its control of its Utah railroads under the new Utah Central Railway, which combined the routes of Utah Central Railroad, Utah Southern Railroad, and Utah Southern Railroad Extension.
During 1881, access to the iron mines of Iron County played a part in the larger picture of railroad development in Southern Utah. Two out-of-state railroads, the Atlantic and Pacific, and the Texas and Pacific, each announced plans to connect with a third road, California Central, that was planning to build across Nevada to connect with the other roads along the Utah-Nevada line, northwest of Cedar City. Railroad officials in Utah, including John Sharp, commenced talks with the California road to bypass the plans of the "foreign" roads and instead, make their connection with the Utah Central Railway, already building south from Utah Valley to serve the silver mines near Frisco. On August 23, 1881, the Utah Central plans were formalized with the organization of the California Central, Utah Division, with a specific stated goal of the iron mines and coal mines of Iron County, and a connection with Utah Central. On January 20, 1882, Utah Central amended its own incorporation papers to include a route to the mines in Iron County. (Reeder, page 403, which includes a citation of Salt Lake Herald, September 17 and 22, 1881)
According to H. H. Bancroft's 1886 History of Utah, in 1883 Utah's foundries and machine-shops produced an estimated $360,000 in iron products, being second only to the territory's flour and grist mills. He also estimated that with suitable and abundant fuel, there would probably be no state west of the Missouri with better facilities than Utah for the production of iron. (Bancroft, page 735)
January 7, 1884
"Moving a Railroad." "Bishop Thomas Taylor, superintendent of the Utah Iron Manufacturing Company, is about to commence the work of removing to Iron City, in this territory, the rails, ties, rolling stock, etc., of the Nevada Central Railroad, which the company he represents recently purchased. The manner of moving the plant will be as follows: the workmen will first move the track and materials in Pioche down to Delmoi's (Delmues) ranch, then they will remove the track from the Bullionville end up to the same place, then all the material will be removed to Iron City. It is the intention at present to take up and relay the track as they go on. Before they arrive halfway to their destination, says the Pioche Record, it is safe to predict that they will give up this method of removing the road." (Salt Lake Evening Chronicle, January 7, 1884)
In 1884, it was reported that the greatest use of iron ore was for the use as flux in the smelting of precious metals in the territory. The Utah Gazetteer for 1884 noted that the Salt Lake and Western Railway was built to transport both precious metal ores from the Tintic area and other mines in western Utah, and iron ores for smelter fluxing purposes; low grade iron ore deposits having been discovered in the Tintic mining district. This line was constructed in 1882 as a standard gauge branchline of Union Pacific. (Our Pioneer Heritage, Volume 10, page 164)
By 1886, historian H. H. Bancroft noted that the importing of iron ore into Utah had "now practically ceased", and that shipment of iron ore and charcoal "at one time were important factors in the imports." This was most likely a direct benefit of the completion of the Utah Southern's (later Utah Central's) line to Milford, then west to the silver mine at Frisco, just 60 miles to the north of Iron Mountain. Transporting iron ore north to the smelters would have been by wagon to Milford, then by Utah Central trains for the remaining 226 miles to Salt Lake City.
In March 1889, Utah Central Railway amended its corporate papers to include a branch to Iron County, with Summit given as the name of the new southern terminus. Also, a line to the Kanarra coal fields in Iron County was added as another extension into Iron County. Neither extension was built.
Railroad service came closer to Iron Mountain with the completion of the Utah and Pacific Railroad in 1899 between Milford and Uvada on the Utah/Nevada state line. In January 1899, the road reached what they called "Cedar City Junction", just 25 miles from Cedar City. The name was soon changed from Cedar City Junction, to Lund.
In April 1901, the Utah & Pacific was sold to Union Pacific's Oregon Short Line subsidiary.
In 1902-1903 a battle of corporate titans ensued as a new railroad line backed by Senator William Clark, with a route from Los Angeles to Salt Lake City, reached southern Nevada. The Utah and Pacific was part of a competing line backed by E. H. Harriman that was to build south across Nevada to Los Angeles. The settlement in 1903 between the two companies resulted in Clark's San Pedro, Los Angeles and Salt Lake Railroad being built along the contested route, and taking ownership of the line north to Salt Lake City, but with Harriman owning 50 percent of the Clark road.
Rio Grande Western announced that it was preparing to build into the iron fields of Iron County from the southern end of its Marysvale Branch, at Marysvale, including seventy miles of railroad to be constructed "this year". (Salt Lake Mining Review, Volume 5, number 1, April 15, 1903, p.25)
Union Pacific's line between Los Angeles and Salt Lake City was completed in May 1905, but the nearest railroad service for Cedar City and Iron Mountain remained at Lund on the old Utah and Pacific line, 25 miles northwest of Cedar City.
There was an article with description of the survey of the Iron Mountain, St. George & Grand Canyon Railroad. (Salt Lake Mining Review, Volume 12, number 7, July 15, 1910, p.20)
August 18, 1912
Steel castings are now made in Salt Lake City by the Silver Brothers Iron Works. "For several months past Silver Brothers Iron works has been operating a modern steel plant, first as an experimental demonstration of a new process, said to be more efficient and economical than others, and later as an established plant, from which castings of high-grade steel are being furnished railroad, smelting, mining and other companies." "When running to full capacity, produces from 36,000 to 40,000 pounds of high grade, tested steel a day," using one newly completed converter. (Salt Lake Tribune, August 18, 1912)
In 1918, in one of the first indications of commercial development of the iron resources in the Cedar City area, there was a news item about surveyors of Colorado Fuel & Iron Company being at work in the vicinity of Cedar City, Utah. (Salt Lake Mining Review, Volume 20, number 6, June 30, 1918, p.38, "Mine, Mill and General News")
"New Railroad in Iron County", article about a new line between Lund and Cedar City to serve the Old Capital Petroleum Fuel & Iron Company. Organizers included A. Meeker, Jr., president and J. J. McClellan, secretary treasurer. Directors included Dr. C. F. Wilcox, Dr. E. D. Woodruff, and George W. Morgan. J. U. Eldredge was general manager. Contractor was to be Hanover Construction of Philadelphia. (Salt Lake Mining Review, Volume 20, number 24, March 30, 1919, p.23)
January 11, 1920
The Milner Corporation, with A. C. Milner as its representative, and in the name of the Carbon County Land company, was first mentioned in a news item about a presentation before the State Land Board, for the development of state-owned 5,564 acres of coal lands in Carbon County. Additional mention was made that the Milner Corporation held large iron ore interests in Iron County. The Milner family had held coal lands near Sunnyside as early as 1905. (Salt Lake Tribune, January 11, 1920; Iron County Record, January 16, 1920; Deseret News, June 25, 1920)
Commercial production began in the 1920s with the opening of the Desert Mound pit for Columbia Steel Company, which also initiated a railroad by the name of Iron County Railway to move iron ore from its Iron County iron mines to its new iron mill at Ironton, near Springville. At the same time, Columbia Steel organized the Carbon County Railway to move coal from Carbon County coal mines to the Ironton mill.
September 20, 1921
The Milner Corporation signed a contract with the newly organized Utah Steel Corporation, to furnish 10 million tons of iron ore from its deposits in Iron County, to the blast furnace and iron and steel manufacturing plant to be built at Midvale. The manager of Utah Steel corporation was M. S. Rosenblatt. (Salt Lake Tribune, May 21, 1921.
The Rosenblatt family (Nathan and his three sons, Simon, Morris and Joseph) were pioneers in the early iron and steel manufacturing industry in Utah, having organized the Utah Junk, Utah Steel, and American Foundry and Machine companies. American Foundry and Machine became Eastern Iron and Metal Corporation in 1920, and in the 1930s became EIMCO. Rosenblatt came to Utah in 1885 at age 19 and organized the Utah Junk company in 1892, using a hand cart to gather scrap metal and rags. His sons joined the successful business as it grew, and after World War I he saw a need to process scarp iron and steel into marketable products and in September 1921 organized Utah Steel company as a further development of the iron and steel business in Utah.
November 15, 1921
A merger of coal and iron mining interests took place, and was finalized on Monday November 14th. Included in the merger were interests of the Utah Coal & Coke Company, headed by A. C. Ellis Jr., along with Southern California Iron & Steel Company. The value of the merger was reported as $25 million ($10 million for the value of the properties, and $15 million for the capital improvements that were to take place). The properties included coal lands near Sunnyside, Utah; iron ore lands near Cedar City, Utah, along with railroad spurs to serve the coal lands and the iron ore lands, and improvements to the existing plants of Columbia Steel at Pittsburg, California, and Portland, Oregon. Southern California Steel Company (of Los Angeles) holds the rights to iron ore lands in Iron County near Cedar City. A iron mill with 500 tons capacity was to be built south of Provo, on the shore of Utah Lake. (Provo Daily Herald, November 14, 1921; Ogden Standard Examiner, November 15, 1921)
Utah Coal & Coke Company was organized in Nevada on November 13, 1918 by A. C. Ellis, Jr., Duncan MacVichie, E. J. Raddatz, and C. H. Gibbs; incorporated in Nevada on September 11, 1919; filed in Utah on September 18, 1919. Took over claims of Marana Land & Development Co. (3,120 acres) and J. R. Evera (680 acres). Organized as the coal mining subsidiary of Columbia Steel Corporation. Its coal property was to be known as the Columbia Mine and was located on 4,000 acres four miles south of Sunnyside, Utah, in Water Canyon. A railroad spur line was to be built. The new company held the rights to 3,120 acres of coal lands in the Sunnyside district, purchased from Marana Land and Development Company, and another 680 acres in the same section purchased from J. Van Evera. (Salt Lake Herald Republican, September 20, 1919; The Sun, September 26, 1919)
Railroad For Iron Mountain
August 11, 1922
Columbia Steel received Utah Public Utilities Commission approval to construct a subsidiary called the Carbon County Railway. At the same time they withdrew their application to build another subsidiary called the Iron County Railway which was to be constructed from Lund, on the Union Pacific, to their iron ore properties in Iron County. The steel company withdrew their application based on the Union Pacific's protest in which Union Pacific stated that they were intending to construct the Cedar City Branch. (Utah Public Utilities Commission, Case 577; application submitted August 11, 1922)
The iron ore bodies in Iron County had been discovered in the early 1850s by Mormon pioneers. The particular deposits near Iron Mountain were first located in the 1870s but by the 1920s had not yet been commercially worked. The mines were to be developed to furnish ore for the new Columbia Steel Company's new iron mill that was being constructed near Springville. The actual mining was done by the steel company's subsidiary Columbia Iron Mining Company, and also by the Colorado Fuel & Iron Company to supply its mill in Pueblo, Colorado. Columbia's iron mill near Springville, called Ironton, went into production on May 1, 1924, producing pig iron. The construction of the Cedar City Branch also included the 4.5-mile Iron Mountain Branch to Desert Mound, which left the Cedar City Branch at Iron Springs (Mile Post 20.28).
While the Carbon County Railway was indeed built (operation began on July 5, 1923), the plans for the Iron County Railway were set aside when Union Pacific announced that they were building a branchline through the same territory. This was UP's Cedar City Branch, which began operation in December 1923.
October 18, 1922
LA&SL received ICC approval to construct the 32.5-mile Cedar City Branch. To be completed by December 31, 1923. (ICC Finance Docket 2527) (The branch was to be constructed to serve the developing iron ore mines in the district west of Cedar City.)
June 26, 1923
UP's Cedar City Branch was officially opened, including a ceremony presided over by U. S. President Warren G. Harding, who arrived by special train. Harding died on August 2, 1923. (Signor, LA&SL, page 94)
December 24, 1923
Utah Iron Ore Corporation was organized on December 24, 1923. Initial operations were from the Desert Mound open pit mine. (Utah corporation index number 16095)
May 1, 1924
Columbia Steel Corporation's Ironton plant began operations. Between 1924 and 1934, the plant produced: 1,189,598 tons of pig iron; 825,574 tons of coke; 44,702 tons of sulfate of ammonia; and 35,939 tons of benzol. The pig iron produced at the plant is shipped to plants in Pittsburg and Torrance, California. (Utah Public Service Commission, Case 1658, concerning Salt Lake & Utah Railroad's request in 1934 to increase freight rates)
Columbia Steel Corporation entered into a contract for Utah Iron Ore Corporation to furnish 1,500,000 tons of iron ore from its Desert Mound open pit mine, at a minimum of 500 tons per day, with delivery to start in July 1926. (G. D. MacDonald, The Magnet, page 19)
September 19, 1925
Columbia Steel was announced as having acquired the Milner-Dear-Leach holdings at Iron Mountain, near Cedar City. The iron ore reserves were owned by the Milner Corporation of Salt Lake City; Mrs. Ridie L. Dear of Washington D. C.; and Fred Leach of Virginia, Minnesota. Columbia Steel had purchased an option on the properties in spring 1925, and test exploration drilling had been completed on September 1st, with the results being that there were reserves of several million tons of hematite ore that was at least 58 percent iron. The Union Pacific branch that currently terminated at Iron Springs, would be extended to Iron Mountain to reach the properties as they are developed. (Salt Lake Telegram, September 19, 1925)
"The Columbia Steel Corporation, San Francisco, Cal., has acquired iron ore properties at Iron Mountain, Utah, heretofore held by the Milner-Dear-Leach Company, totaling more than 900 acres, and plans for extensive developments in the near future." (Blast Furnace & Steel Plant, Volume 13, Number 12, December 1925, page 505, "The Open Hearth")
L. F. Rains of the Columbia Steel Company announced that his company had taken over the holdings of the Burke Iron Company, which were located 11 miles from the Columbia Steel company's Desert Mound property. (Iron County Record, July 6, 1928, page 8, "Steel Firm Gets Iron Ore Option") (ed. note: This would be the first indication of development of either the Iron Mountain or Comstock properties.)
The Desert Mound mine was furnishing 1000 tons of ore daily to Columbia Steel Corporation. (Iron County Record, January 9, 1929, page 4, "Prospects Look Bright")
November 1, 1929
The following comes from the November 1, 1929 issue of the Ogden Standard Examiner newspaper:
Salt Lake, Nov, 1. -- The Columbia Steel Corporation, acquired Thursday (October 31, 1929) by the United States Steel corporation, was incorporated under the laws of Delaware, November 23, 1922. It started with the consolidation of the Columbia Steel company, Pittsburg, Cal. and Portland, Ore., and the Utah Coal & Coke company, controlling extensive coal properties in Carbon county.
A year later the new corporation absorbed the Llewellyn Steel Company of Los Angeles, and several years ago it acquired the Milner-Dear-Leach iron holdings near Iron Mountain, Utah.
The corporation now owns property in Carbon County containing containing about 60,000,000 tons of coking coal, and 10,000,000 tons of high grade iron ore in Iron County. Plants are maintained at Ironton, near Provo, and at Pittsburg and Torrance, -Cal., and Portland, Ore.
Holdings are highly developed and equipped with working railroad facilities. The Carbon County Railway company, operated by the Columbia Steel Corporation, has assets valued at $30,000,000.
The following comes from "Iron Pays Utah Bills" in the July 22 1937 issue of the iron County Record newspaper:
The appropriation of iron land began in 1877 with the survey of a lode claim called the "Blowout". Locating claims was the outstanding feature of the iron business for several decades. Those most active in acquiring claims were Matthew Cullen, S. B. Milner and the Colorado Fuel & Iron Co. The ground once patented, a search for capital to develop and exploit it was in order. The clock of time pointed to 1923 before a successor to the Old Iron Town enterprise appeared. In that year the Columbia Steel Corporation went actively to work at Iron Springs, using a tunnel and glory hole system. The following year shipments of ore to a blast furnace at Ironton were commenced.
Nineteen-thirty was an eventful period for the Utah iron industry. The United States Steel Corporation came west and purchased all the properties of the Columbia Steel. There was no lack of capital now. Operations were shifted to Iron Mountain, 12 miles southwest of Desert Mound, and a railroad to that point was planned. Surveying for a standard gauge line was started in the fall of 1934. Construction began May 1, 1935, and was completed on August 25th.
Preliminary work on a mining and crushing plant had been in progress for some time. On August 1, 1935, the building of the plant was actually begun and the following April it was completed.
Adjacent to the plant site are several ore bodies. One of these, the Black Hawk, was selected for the first development. An open pit was started 700 feet from the receiving hopper of the primary crusher. The ore is broken by drilling and blasting 6-inch churn drill holes. The open pit face is 80 feet high by 160 feet long. The ore is loaded by a 2-1/2-yard electric shovel into two trucks, each with a capacity of 23 long tons, and hauled to the hopper. A pan feeder conveys the ore from the receiving hopper to a 60 x 48-inch jaw crusher. A belt conveyor carries it to a scalping screen which bypasses the finished product. The oversize goes through either a reduction or a cone crusher. The product of this operation, which is all of 2-inch size or less, is conveyed by a belt to a double-deck finishing screen which produces three sizes as follows: First grade, under 5/16 inch; second grade, 5/16 to 1 Inch; third grade, 1 inch to 2 inches. The ore is loaded into railroad cars and shipped 239 miles to the blast furnace at Provo.
LA&SL received approval to construct the Iron Mountain Extension on Iron Springs Spur of Cedar City Branch, from Desert Mound to Iron Mountain, 11.31 miles, to serve iron ore mines. Construction to commence on May 31, 1935. (ICC Finance Docket 10622, approved November 8, 1934, 202 ICC 454) (See also: Utah Public Service Commission files, Box B65T1, 9/14/1987)
Between May 1, 1924, the date that Columbia Steel Corporation opened the Ironton plant, and 1934, the plant produced: 1,189,598 tons of pig iron; 825,574 tons of coke; 44,702 tons of sulfate of ammonia; and 35,939 tons of benzol. The pig iron that is produced at Ironton is shipped to plants in Pittsburg and Torrance, California. (Utah Public Service Commission case 1658)
Representatives of Union Pacific were in Cedar City buying property for a new 12-mile rail line from Desert Mound, south to Iron Mountain. The Iron County Commission had already approved Union Pacific's request for a crossing of the Cedar-Newcastle Highway (today's Desert Mound Road). (Iron County Record, March 21, 1935, page 1)
April 16, 1935
Union Pacific let the contract for the construction of the new rail line between Desert Mound and Iron Mountain. Morrison-Knudsen of Boise, Idaho is to be the contractor. (Iron County Record, April 18, 1935, "Tuesday")
May 31, 1935
LA&SL began construction of the 11.31-mile line between Desert Mound and Iron Mountain, as an extension of the Cedar City Branch, to serve the iron ore mines that are being developed there. (ICC Financial Docket 10622)
August 25, 1935
Union Pacific completed the Iron Mountain Extension. Construction and installation of a new mining and crushing plant at the Iron Mountain mine was begun on August 1, 1935, and was completed in April 1936. (Iron County Record, July 22, 1937)
In 1935 Columbia Iron Mining expanded their operations to include the open pit mine at Iron Mountain and Union Pacific extended the Iron Mountain Branch 10 miles south to reach Iron Mountain Station. In 1942 mining operations were again expanded to supply ore for the new Columbia-Geneva Steel plant, under construction near Orem to supply steel plate needed for the war effort, and Union Pacific made improvements to the facilities on the branch to handle the additional traffic. (U. S. Bureau of Mines Report of Investigations 4076, May 1947)
The following comes from "Iron Pays Utah Bills" in the July 22, 1937 issue of the Iron County Record:
Since the Columbia Steel Corporation opened the mines at Iron Springs in 1923, operations in the district have been continuous. The development of the iron industry In Utah was the greatest incentive to the building of the Cedar City branch of the Union Pacific railroad. The iron mines have been the largest source of revenue for the road and also the largest consumers of power in the southern part of the state. Their payrolls have always been substantial. From them have been derived most of the $90,000 of taxes paid annually by the railroad to Iron County. Payments by the railway, mines and power company to the county are well over $100,000.
Although it has not been feasible to smelt the ore in Iron County, it is done within the state, so that the coal mines, stone quarries and transportation companies contribute to the employment of labor and the tax revenue of the state, the counties and the municipalities. Farmers and local merchants are secondary beneficiaries of the wealth produced by the iron industry.
It is a highly competitive industry. The Utah field must compete not only with domestic producers but also with foreign interests fortified by cheap labor. To do so it needs the same support through out the state that it receives from the people of Iron County.
Columbia Mining Company's iron ore mine at Iron Mountain was noted as being the "second largest iron ore mine on the American continent." Production was stated as being 900 tons per day during summer, being cut back to 600 tons per day. (Iron County Record, September 30, 1937, page 4)
"Construction of the plant for the government was begun by Columbia Steel company, west coast subsidiary of U. S. Steel, in April 1942. In August of this year (1943), Geneva Steel company, a newly formed U. S. Steel subsidiary, contracted with Defense Plant Corporation to operate this great war plant for the duration without profit of fee." (Park Record, January 6, 1944)
"The 1600-acre plant site was cleared of farm buildings in April 1942, and construction was undertaken at the request of the Defense Plant corporation." (Salt Lake Telegram, December 14, 1943)
"The Utah Construction Company arrived at Iron Mountain under Contract with the Colorado Fuel and Iron Company to open up ore bodies for C.F.& I." (G. D. MacDonald, The Magnet, page viii)
October 8, 1943
Union Pacific issued Work Order and Authority For Expenditure to build a spur 194 feet long, and an engine house (16 feet by 60 feet) at Iron Mountain, Utah. The engine house was specifically needed to protect a recently assigned diesel switcher, which was to be used to switch rail cars at the three nearby iron ore mine plants. The project was funded by UP's own special "National Defense Project," which was funding set aside by the railroad specifically to support the war effort. There were three mining plants loading iron ore, and a diesel switcher was needed to expedite the timely movement of trains. The engine house was to be constructed with a wooden frame, covered with corrugated steel, and was to be equipped with an inspection and service pit, and necessary heat, water and lights. About 200 cars per day of iron ore was being moved to the Columbia Steel plant at Geneva, Utah, and to the Colorado Fuel & iron plant at Pueblo, Colorado. The use of a diesel switcher would be more efficient and economical than the use a steam locomotive with its associated coaling and water facilities. (Union Pacific internal communications dated October 8 and 21, 1943)
Utah Construction Company opened its iron ore mines near Iron Springs, selling large shipments to Kaiser Steel at Fontana, California. The siding on Union Pacific's Cedar City Branch was known as Kaiser, at mile post 22.3, a distance of 1.3 miles east of Iron Springs.
"Utah Construction built an iron ore processing and loading plant on the railroad in the Iron Springs Gap from which they shipped ore until 1981." (G. D. MacDonald, The Magnet, page viii)
"Further on into 1944 Utah Construction Company purchased and leased property on and around Granite Mountain and Three Peaks on both sides of the railroad. A crushing and loading facility was constructed on the south side of the tracks in the Iron Springs Gap, which installation was designed to sell ore on the open market. The first and largest customer was the Kaiser Steel Company who had a steel plant in the peach orchards at Fontana, California. Kaiser blast furnaces depended on Utah ore in varying amounts until 1958. High grade open hearth ore was shipped to several plants in the United States and some even went to Japan." (G. D. MacDonald, The Magnet, page 28)
"Columbia Iron Mining Company built a crushing and loading plant called the Desert Mound Operation, on the southwest corner of Granite Mountain and began shipping 50 percent of their ore requirement from there until it closed in 1984." (G. D. MacDonald, The Magnet, page ix)
In 1950 and again in 1955, Union Pacific moved its Iron Mountain Branch in the vicinity of the Desert Mound mine, to allow for expanded open pit mining at the mine. (LA&SL Condensed Profile, 1976, page 68, Utah Division Iron Mountain Branch)
Union Pacific announced the purchase of ten 1,500 horsepower EMD SD7 locomotives. Total cost of $2,150,000. (Union Pacific AFE 12, approved February 3, 1953)
The 10 SD7 locomotives would be used for handling Iron Mountain to Milford, Utah, business, and for heavy switching at the Geneva steel plant. Seven units were to be assigned to the South-Central District, and three units were to be assigned to effect economical operation of various branches, other than on the South-Central District. (Union Pacific letter, Stoddard to Charske, February 3, 1953)
Utah Construction Company began mining iron ore from the Comstock claims owned by Colorado Fuel & Iron. The ore was processed and loaded on a spur that connected with the Iron Mountain Branch at the railroad station known as Comstock, about four miles north of the Iron Mountain mine. (G. D. MacDonald, The Magnet, page 59)
The following comes from S. Kip Farrington's "Railroads Of The Hour" discussing UP's iron ore movements for 1957:
Ore was loaded at Iron Mountain and Desert Mound for the Columbia Iron Mining Company, at Iron Mountain and Comstock for the Utah Construction Company, and at Iron Springs for H.L. Beatty. "In 1957 the UP moved a total of 72,802 carloads of iron ore, ore fines and sinter to various points." Further breakdown given as follows:
- 51,076 carloads of ore to Geneva and Ironton (US Steel)
- 16,569 carloads of ore to Minnequa (CF&I Steel-Pueblo)
- 2,601 carloads of ore to Fontana (Kaiser Steel)
- 110 carloads ore to the "Missouri River and east"
- 2,119 carloads ore to Long Beach for export
- 59 carloads of fines and sinter to Geneva and Ironton
"Columbia Iron Mining Company was dissolved as a U.S. Steel subsidiary." (G. D. MacDonald, The Magnet, page ix)
U. S. Steel's iron plant at Ironton was closed in 1966.
Millions of tons of ore are supplied by Iron County's mines for the huge furnaces of Geneva Works. The volume of Utah iron consumed at Geneva has diminished substantially since U. S. Steel Corporation began the importation of iron ore from its new taconite mining and milling complex near Atlantic City, Wyoming. Other industries stem from the primary processing of iron ore, such as the iron foundries - Backman Foundry, Cox Foundry and Pacific States Cast Iron Pipe Company in Provo, and the Spanish Fork Foundry in Spanish Fork; also a big steel pipe plant owned and operated by U. S. Steel near the Geneva Works. (Utah Mining Association, "Operational and Economic Review, August 1967, page 92)
Union Pacific received Utah Public Utilities Commission approval to abandon portions of the Ironton Branch. (Public Service Commission of Utah, case 77-400-06)
"The Colorado Fuel and Iron Company ceased shipping iron ore from their Utah property to their Colorado furnaces." (G. D. MacDonald, The Magnet, page ix)
February 16, 1981
Union Pacific operated the last train of iron ore from Iron Mountain to the Colorado Fuel & Iron plant in Pueblo, Colorado. (source not recorded)
"U.S. Steel shut down their entire iron mining operations in Iron County, Utah thus ending a sixty year life about four miles from where it started in 1923." (G. D. MacDonald, The Magnet, page ix)
"Utah International, formerly Utah Construction Company, closed down its mining operations in 1984 after a 41 year active life." (G. D. MacDonald, The Magnet, page ix)
After U. S. Steel
U.S. Steel's Iron Mountain mine on UP's Iron Mountain Branch (Cedar City Branch) was closed in 1983, along with the Atlantic City, Wyoming, mine. U.S. Steel's Geneva Works were furnished with taconite from Minnesota. The Iron Mountain mine reopened in spring 1985 to furnish the new Geneva Works, with about two unit trains running per week. (CTC Board, July 1985, page 14)
Mines in Iron Mountain region were independent. By summer 1984 all machinery at the mines had been sold to various gold mines developing in Nevada. In January 1985 UP was considering total abandonment of the 31-mile Cedar City Branch, along with the connecting 14-mile Iron Mountain Branch. In April 1985, just after UP had informed U.S. Steel of its intention to abandon the branches, U.S. Steel let UP know that they were considering reopening the mines to furnish ore to the Geneva Works. By June 1985, one mine had reopened and was furnishing ore to the Geneva Works. Mine owned and operated by Gilbert Construction Co. of Cedar City, Utah. Trains being operated were the SUW (Steel Unit West) empties and the SUE (Steel Unit East) loads; on a one train per week schedule. A summary of operations included information that Gilbert Construction Company (of Cedar City, Utah) was the new operator of the Iron Mountain iron mines, plus operational notes that Union Pacific picked up loaded iron ore cars on Thursdays at 4 p.m. The main iron mine was at Comstock. Other iron ore loading facilities were at Iron Springs, Deseret, Mound, and Iron Mountain. (CTC Board, November 1985, pages 49-50)
September 1, 1987
U. S. Steel's Geneva Works steel plant was sold to Basic Manufacturing and Technologies of Utah, which changed its name to Geneva Steel Company in 1989.
September 18, 1987
Geneva Works reopened in early September 1987, after being idle for 13 months. New company was Basic Manufacturing and Technologies of Utah. First train of ore from Cedar City Branch was shipped over UP on September 18, 1987. (Pacific RailNews, January 1988, page 11)
Geneva Steel's production of iron ore at the iron mines west of Cedar City for 1988 was an estimated 550,000 tons, with 1989 to be a slight increase. (ed. note: the reported annual total calculates to be about sixteen 90-ton railroad cars per day) (Deseret News, January 29, 1989)
During 1990, Geneva Steel was mining 550,000 tons per year from its mines at Iron Mountain, and shipping the mined ore to its steel plant near Provo. (Deseret News, February 11, 1991, citing a recent article in Utah Business magazine)
The Iron Mountain was last operated in 1995 by Geneva Steel subsidiary Iron Ore Mines LLC. (Utah Geological Survey, 2004 Summary of Mineral Activity in Utah, stating that Iron Mountain production was between 1923 and 1995)
Iron Springs-Pinto District
Palladon (65% joint-venture ownership) and WUCC (35% joint-venture ownership) have entered into an agreement with Iron Ore Mines LLC to purchase its iron properties in the Iron Springs-Pinto mining district in southwestern Utah for $10 million. Iron Ore Mines' property contains two iron deposits, the Comstock/Mountain Lion and the Rex. The Iron Springs-Pinto district has been one of the most productive iron ore districts in the western U.S. The bulk of the district's production occurred between 1923 and 1995, with its most productive period between 1947 and 1965 while being operated by U.S. Steel.
The Iron Ore Mines' property contains approximately 2000 ha (4940 acres) of patented mining claims and other fee lands and an additional 400 ha (990 acres) of unpatented mining claims. The measured reserve remaining in the Comstock/Mountain Lion pits is 25 million mt (27.6 million st) of ore averaging 47.1% Fe with a 0.3:1 stripping ratio. The Rex deposit, which has never been mined, contains a measured reserve of 80.9 million mt (89.2 million st) of ore averaging 39% iron, and could be amenable to open-pit mining. Near the Comstock/Mountain Lion deposit are several low-grade stockpiles estimated to contain a total of 12.5 million mt (13.8 million st) of ore averaging 42% iron. Palladon and WUCC are proposing to reopen the mine and construct an on-site smelter with a capital cost of $1.1 billion.
In a system-wide reorganization of its operating divisions, Union Pacific changed its Iron Springs-to-Iron Mountain branch from the Comstock Branch to the Comstock Subdivision. Its line between the mainline at Lund, and Cedar City was changed from the Cedar City Branch to the new Cedar City Subdivision.
Palladon Iron Company
January 27, 2005
Palladon Iron Company began its acquisition of the iron ore properties in the vicinity of Cedar City. The property was previously owned by Iron Ore Mines, LLC. (Palladon news release, January 27, 2005)
A later news release five days later clarified the definition of "reserves" and "historical estimates". (Palladon news release, January 31, 2005)
February 9, 2005
The following comes from the February 9, 2005 issue of the Salt Lake Tribune:
Palladon Ventures Ltd. has never developed a major mining project, but that is not stopping the "junior mining" company from talking up its plans for southern Utah. Having secured a contract giving it the right to buy an idle iron ore mine near Cedar City for $10 million from the bankrupt Geneva Steel, the company whose shares trade for 32 cents on the Toronto Venture Exchange and its partner, Western Utah Copper Co., say they want to develop a steel mill that will cost as much as $1 billion adjacent to the mine.
Before the two companies can move forward on their billion-dollar steel mill plan, though, they must raise approximately $10 million by April 9 to complete the acquisition of the Cedar City area iron-ore property from Geneva subsidiary Iron Ore Mines LLC, which last operated the property in 1995.
Palladon, however, appears far from the strongest company financially. While its unaudited financial statement for the nine-month period ended Nov. 30 indicates the company is holding $2.1 million in cash, it also lost $1.4 million during that same nine-month period. The company concedes there is no market for iron ore from the property it intends to buy.
"For this reason," the company said in a statement, "Palladon and [Western Utah Copper] believe that the best use for the iron ore . . . may be to process the ore on-site to produce direct-reduced iron nuggets or 'hot metal' as feed for an adjoining steel plant, with the steel products to be sold into the growing markets of the southwestern United States."
Palladon President George Young, whose resume lists a stint as general counsel and acting general manager of the Intermountain Power Agency, understands the company's plans will be viewed with skepticism. "We've already met with a lot [of skepticism] but think we can do this," he said. "We've already got companies interested in joint venturing with us. Geneva was an old, antiquated mill with a lot of problems. We believe we can put a mill near the site and that with the close proximity of the iron ore deposits, operate a modern facility with significantly lower costs than the industry standard."
April 13, 2005
Palladon completed its purchase of the iron ore properties near Cedar City. (Palladon news release, April 20, 2005)
July 14, 2005
The following comes from a Palladon press release, dated July 14, 2005:
Palladon Ventures Ltd. is pleased to announce the selection of Gilbert Development Corp., of Cedar City, Utah, to conduct contract mining at the Comstock Iron Mine in Iron County, Utah. Gilbert will mobilize immediately to commence first phase mining activities. Palladon plans to produce iron ore concentrate for sale to domestic and international customers.
Gilbert has been a mining contractor for over 30 years and has extensive expertise in crushing and magnetic separation. In 1983 the firm began contract mining for USX Corp. and Geneva Steel on the Comstock Iron Mine. Between 1983 and 1997 Gilbert moved over 50 million tons of iron ore and waste from the mine site. Following mobilization, Gilbert will commence mining high-grade zones of the pit in order to build stockpiles for further processing and shipment.
Don Foot, VP of Palladon Iron Corp., said "Gilbert brings to Palladon intimate knowledge and experience in the Comstock Iron Project. Their extensive year-round experience in mining and loading at the site will provide great assistance in the resumption of mining activities and will enhance our ability to provide consistent product to the marketplace. Gilbert also holds the highest rating in safety from MSHA and OSHA, a point that is very important to Palladon.
August 26, 2005
Palladon announced that Luxor Capital Partners had become an equal partner participant in the Iron Mountain Project, acquiring a full 50 percent interest, with Western Utah Copper giving up its original 35 percent, and Palladon reducing its interest from the original 65 percent, to 50 percent. This was in return for Luxor's assistance in restructuring the original $10.3 million loan that allowed Palladon and Western to purchase the Iron Mountain Project (actual name: Comstock Mountain Lion Iron Project), along with Luxor contributing almost $2 million in financial support that would allow continued development of the Iron Mountain Project. Palladon was then to use $1.4 million to directly benefit its own interest in the continued development of Western Utah Copper's copper mine west of Milford. (Business Wire, August 27, 2005; Palladon press release, August 26, 2005)
Reports surfaced about a new railroad having been organized in Utah to operate rail service along UP's Comstock Subdivision. Projected operations was to operate run-through UP motive power (using Utah Southern crews) to move approximately 2 million tons per year in 12,000 ton, 84-car unit trains. Operations were planned to begin in the third quarter of 2006. It was reported that Palladon and Utah Southern had already reached agreements on the needed rehabilitation of the trackage between the mines and the interchange point with UP at Iron Springs Junction, also known as Comstock Junction. (Trainorders.com, May 6, 2006)
More reports described the planned routing of the iron ore units trains from Iron Mountain. The planned route for about half the iron ore was by way of Donner Pass, then to the Port of Richmond (via Richmond Pacific) for loading into ships bound for China. The other half was to be moved to Portland for loading on ships. It was also reported that Utah Southern was owned by Mike Root, who also owned Albany & Eastern Railroad in Oregon, and that he had completed a hi-rail inspection of the line on April 20, 2006. The planned production rate from the mine was to allow the operation of 240 trains of 80 to 84 cars each. Utah Southern was to construct three train-length holding tracks at Iron Springs for interchange with UP. (Trainorders.com, May 4, 2006)
August 28, 2006
Palladon Ventures announced that they had sold their first iron ore from the Iron Mountain project near Cedar City, Utah. The first order was a 500 ton shipment of crushed feed material to a cement industry customer, who trucked the material from the mine site. The material is from a stockpile holding approximately 100,000 tons of iron ore grading an average of 56 percent iron mineral. This material was mined, crushed, and stockpiled by Geneva Steel prior to the shutdown of their operations at Iron Mountain in 1996. (Palladon press release)
September 14, 2006
Palladon Iron Corporation received federal Surface Transportation Board approval for its lease of Union Pacific's Iron Mountain Branch, running from Iron Springs station on UP's Cedar City Branch, south to the Comstock/Iron Mountain iron ore mines being developed by Palladon. On the same date, Palladon leased the branch for operation to the newly organized Iron Bull Railroad (IBR), controlled by Albany & Eastern Railroad (AERC), a shortline operating in Oregon's Willamette Valley. (STB Decision; PDF, 3 pages)
January 9, 2007
Palladon sold their interest in the Western Utah Copper Project to their former joint venture partner, Western Utah Copper Company, for a reported $3 million in cash, and $10 million payable as royalties from the smelting of known reserves and newly discovered ore bodies. Palladon announced that the proceeds of the sale was to be used to pay down principal on the outstanding loan to Luxor Capital Partners on the debt outstanding for the Iron Mountain Project. (Palladon news release)
May 22, 2007
Corriente Master Fund of Forth Worth, Texas, purchased 10 million shares of Palladon common stock, giving them 13.2 percent ownership of Palladon Ventures. The agreement also allowed Corriente to purchase interests in an additional 6.6 percent interest at a future date. (Corriente Advisors news release)
June 21, 2007
Palladon Ventures announced that a five-year renewable contract had been executed with Holcim Inc., for the sale of iron ore materials used in the cement manufacturing process. Iron ore material was to be sold at the Comstock/Mountain Lion Mine at Iron Mountain, Utah, and shipped by truck by Holcim to their 800,000-ton capacity Devils Slide facility near Morgan, Utah. Holcim Ltd. is one of the leading global manufacturers and suppliers of cement, aggregates, and mineral components. Holcim Ltd. operates in over 70 countries around the world, employing over 90,000 people. In the United States, Holcim Inc. is one of the largest suppliers of Portland and blended cements, operating 14 manufacturing plants and over 70 distribution facilities, supplying more than 14 million metric tonnes of cement and related materials annually. (Palladon news release)
July 4, 2007
Palladon Iron Corporation, a direct subsidiary of Palladon Ventures, Ltd., officially changed its name to Iron Bull Mining and Milling. (Palladon news release)
The owners of Iron Bull Railroad also owned the Albany & Eastern Railroad in Oregon. In early August 2007, they sold their interest in Albany & Eastern to focus their activities on the further development of their interests in Utah, which was expected to begin operations during the third quarter of 2008. (Trainorders.com, July 26, 2007)
April 1, 2008
Palladon Iron Corporation (PIC), has signed a long-term sales agreement with China Kingdom International Minerals & Metals Co., Ltd (CKI). (Palladon news release)
Track rehabilitation of UP's Comstock Subdivision began in early June with the first train expected sometime after July 15. The road's operating plan called for two or more cuts per day to be loaded and brought down the hill from the mine to the UP connection at Iron Springs. There is not enough room at the mine to load a whole train. Motive power was to be SD40-2 locomotives. (Trainorders.com, May 16, 2008)
August 6, 2008
Palladon Iron Corporation organized the Palladon Iron Corporation Railroad (PICR) to operate its lease of the Union Pacific Comstock Subdivision.
September 11, 2008
Salt Lake City, Utah -- Palladon Ventures Ltd. through its subsidiary, Palladon Iron Corporation, resumed mining operations today at the Iron Bull Mining & Milling facility at Iron Mountain, Utah. The historic mine has produced over 80,000,000 tons of material since 1853, but has not been actively mined since 1996. Blasting and mining began today as the Iron Mountain site went into full operation. The first run-of-mine iron ore to be sent to China was mined from benches 6350 and 6400 and moved to the crusher pad. Mining operations are currently at approximately 5,000 tons per day. This production will increase to approximately 6,000 tons per day as we reach full production in the next four weeks. This newly-mined material will be used to replenish the current stockpile, which will be maintained at 130,000 tons. (Palladon press release, September 11, 2008)
October 17, 2008
First Utah Southern train, in the form of a test train of 25 empty cars, was run on Friday October 17, 2008.
April 2009 to March 2010
After the collapse of the worldwide investment markets, the financing that Palladon was depending on to fund continued development work evaporated and trading of the company's stock was stopped. After months of negotiations with Luxor Capital Group as its primary lender, Palladon Ventures was forced to turn 78 percent ownership of Palladon Iron Corporation over to Luxor on March 15, 2010, with Palladon Ventures retaining 22 percent ownership. Luxor stated that development of the Comstock/Mountain Lion iron mines would continue under its management team. (Palladon news release)
Mining operations were delayed due to financial difficulties of Palladon Ventures Ltd.
CML Metals Corporation
January 25, 2010
The management and leadership of Palladon Iron Corporation was changed to include the management and leadership of Gilbert Development Corporation, which had been the extraction contractor for all products being mined at Iron Mountain since the mid 1980s, when U. S. Steel, then Geneva Steel (after 1987) were the principle customers. (Palladon news release dated January 25, 2010)
Palladon Iron Corporation was reorganized as CML Metals Corporation, as the operating company of the newly organized CML Holdings, Holdings on or about March 16, 2010, after a financial settlement between Palladon Ventures, and its source of investment capital, Luxor Capital Partners. The settlement resulted in Luxor converting its $40.5 million investment into a 78.3 percent interest in Palladon Iron Corporation, with Palladon Ventures, holding the remaining 21.7 percent. The operating CML Metals Corporation, a subsidiary of CML Holdings. (Palladon news release dated March 16, 2010)
(The CML name comes from the name of the mine actively being worked, Comstock Mountain Lion.)
(At the time, CML Metals Corporation was 78 percent owned by Luxor Capital Group and 22 percent owned by Palladon Ventures, Ltd.; Luxor Capital Partners, LP was a New York City hedge fund founded by Christian Leone.)
(Palladon Ventures, Ltd., is a mining company based in Vancouver, British Columbia. As of March 2010 Palladon Iron Corporation's CEO was Dale Gilbert who was also President and CEO of Gilbert Development Corporation, the project's mining contractor. Also on Palladon's Board of Directors was Steve Gilbert, founder of Gilbert Development Corporation.)
Mining operations began, following a formal agreement between China Kingdom International Minerals & Metals and CML Metals for the shipment of at least 600,000 tons of iron ore to China by way of the Port of Richmond, near Oakland. (Palladon news release dated June 11, 1010)
July 12, 2010
The first trains of iron ore moved from Utah to Richmond, California, using 150 Rapid Discharge hopper cars owned by CML Metals Corporation and leased to Utah Southern Railroad, using USR's reporting mark. The iron ore moved in two trains of 75 cars each. Plans called for two trains per week, with Utah Southern Railroad handling the loads from the mine on the Comstock branch. (See also: Deseret News article dated July 11, 2010)
January 11, 2012
CML Railroad (CMLR) officially took over the operation of the lease of UP's Comstock Subdivision, for the purposes of moving unit trains of iron ore from the Comstock Mountain Lion mine, to the interchange and connection with Union Pacific at Iron Springs, Utah. (CML Metals news release, copied to the Palladon Ventures web site (Palladon news release dated January 12, 2012; "Secured rail capacity and fleet of railcars").
March 9, 2012
Iron ore trains from Utah began using the Port of Stockton in Stockton, California, using 5,825 feet of new track built by Central California Traction Company, provider of rail service to the port. The port received its first iron ore shipments in 2011, and had shipped 800,000 tons by year's end. Trains were to be operated into the port facilities on a weekly basis starting on April 1, 2012. (The Record, Stockton, California, March 10, 2012, page A5)
The CML railroad operations used four SD40-3's leased from Helm Financial. The road numbers are 6060, 6064, 6090 and 6079. CML had a fleet of about 550 open top hopper cars also leased from Helm. CML operated approximately five trains a week of either 84 cars (UP symbol OISST) and 100 cars (UP symbol OISRM). (OISST=Ore; Iron Springs-Stockton. OISRM=Ore; Iron Springs-Richmond.)
CML also did its own car, locomotive, and track repairs, with 11 employees.
From a recent joint Palladon/CML press release:
Earlier this year, CML secured port access in Southern California at the Port of Long Beach, California and shipped its first fully-loaded Supramax on March 31, 2013. During the calendar quarter ended September 30, 2013, the Company successfully transitioned to using Panamax vessels, resulting in the largest iron ore shipments the Company has loaded to date. CML will retain the flexibility to use Supramax vessels. The Company successfully loaded and shipped three Panamax vessels during the months of August and September from the Port of Long Beach destined for China. These loads averaged approximately 70,000 metric tonnes with contained Fe averaging nearly 65%. The Company completed loading and shipped its fourth Panamax from the Port of Long Beach during the first half of October.
As expected, the new port facility has increased CML's export capacity and helped to lower unit costs, as employing larger vessels reduces unit shipping costs. In addition, Long Beach is substantially closer to the mine than CML's prior ports, providing for some lower maintenance costs related to the CML rail cars. CML is exploring, with the Port of Long Beach, the use of larger ocean vessels, such as Post Panamax vessels carrying in excess of 100,000 tonnes, which may assist CML in lowering their freight costs.
CML is producing at approximately 75% of capacity, which is a rate of operation that fills a Panamax vessel approximately every 2.5 weeks. Once the new hyperbaric disk filters are installed at the Utah mine, CML expects production to increase to 100% of original design capacity of two million tons per year. (CML Metals news release; Palladon Ventures news release)
October 18, 2014
Due to falling prices of iron ore on the world market, the Iron Mountain Project was shut down for an indefinite period. (Palladon news release dated October 17, 2014)
April 6, 2015
CML Metals Corporation was sold to Gilbert Development Corporation in an agreement dated April 6, 2015. (Palladon news release dated April 6, 2015)
Black Iron LLC
May 15, 2015
Gilbert Development Corporation sold its interest in CML Metals to a new company, Black Iron LLC, organized for the purpose on April 2, 2015.
June 18, 2020
Black Iron LLC was given approval to continue mining operations at the Comstock Mountain Lion mine, and to dispose of mill tailings at the former Blackhawk and Blowout pits. Black Iron will be building a 3.2-mile tailings and return pipeline between the Black Iron mill site at the Comstock Mountain Lion mine and the abandoned Blowout pit. Federal BLM approval came on June 30, 2020.
The following comes from the amended Mining and Reclamation Plan on file with the Utah Division of Oil Gas and Mining.
In 2015 Black Iron, LLC (Black Iron) acquired all assets pursuant to the recorded APA dated May 6th 2015, including the rights to the iron ore deposits located ~25 miles west of Cedar City Utah, from CML Metals Corporation (CML Metals). The current operation consists of several large open-pit mines, processing areas and mine waste dumps. The ore is predominately magnetite with hematite.
Black Iron will continue to operate in the Comstock/Mountain Lion side of Iron Mountain, with intentions to extend operations to the Rex/Burke areas. All mining will take place within the Comstock Mountain Lion (CML) disturbance area which includes the CML pit.
Black Iron will be constructing a pipeline approximately 3 miles long extending from the Mill to the Blowout and Blackhawk pits. The pipeline will consist of two pipes, one disposing of tailings in the Blowout pit, and the second line for transporting reclaimed water back to the mill.
Iron Mountain Railroads -- A Google Map of the railroads and mines in the Iron Mountain District, near Cedar City, Utah.
Photos of Iron Mountain -- A search for "Iron Mountain" to view photos in all Utah Division of State History Digital Collections.
The Magnet, Iron Ore In Iron County -- An excellent 75-page history of iron mining in Iron County, Utah; written and self-published in 1991 by Graham D. MacDonald, mining engineer and later General Superintendent of the U. S. Steel iron mining operations. (PDF; 76 pages; 16.3MB)
Searches of numerous on-line newspaper and periodical collections, notably the Utah Digital Newspaper Collection, as well as the Security Exchange Commission 10-K reports and various corporate news releases.
Emails from many interested individuals, including Allen Copeland, Adam Eastman, and Kevin Anderson.
Documents on file with the Utah Division of Oil Gas and Mining (Permit M0210008) (1982 to present day)
Iron Mountain Railroads -- Information about the railroad operations the movement of iron ore from the mines at Iron Mountain in Iron County, to a connection with UP at Iron Springs on the Cedar City Branch. The rail line itself is owned by Union Pacific, and has been leased for operation to several operators since 2006. First as Utah Southern (2006-2012), then as CML Railroad (2012-2015), then as Black Iron LLC (2015-2020), then as Utah Iron LLC after late 2020.