Spotlight On: Ida Rukavina, Commissioner, Department of Iron Range Resources & Rehabilitation
December 2024 — In an interview with Invest: Ida Rukavina, commissioner of the Department of Iron Range Resources & Rehabilitation, highlighted a $6.5 million housing initiative that is estimated to create more than 300 new units to support economic growth in northeastern Minnesota and new commercial spec buildings to attract businesses. She emphasized workforce partnerships and a focus on expanding industries like renewable energy and bioeconomy to drive regional development.
What were the main highlights and milestones for the Department of Iron Range Resources & Rehabilitation this past year?
This past year, we’ve made significant strides in diversifying the Iron Range economy, with one of our largest initiatives being the launch of a $6.5 million housing program. Housing availability has become a critical concern for economic growth and business retention across northeastern Minnesota.
In response, we developed a housing initiative tailored to our communities, supporting both new construction and rehabilitation projects. Over the last year, we’ve funded 15 projects; if fully developed, these projects will create 304 new housing units, 84 rehabilitated units, and 67 new lots for future development. By partnering with Minnesota Housing, local chambers, and private developers, we’re able to bridge the gap between development costs and affordable rent, maximizing resources and impact.
Another key milestone is our work on spec buildings — commercial spaces ready for business occupancy. In Aurora, we’re partnering with the city’s economic development authority to attract tenants for a new facility. Similarly, in Hibbing, we broke ground on a building for the expanding manufacturing company, Advanced Machine Guarding Solutions. Eveleth is also moving forward with plans for an industrial park, with our support in the initial planning phases. These projects are building essential infrastructure to drive local business growth and job creation in the region.
What are the key industries in the northeastern Minnesota region?
Mining remains our primary industry, funding much of our work, with a 140-year history in iron ore production. Today, six active taconite mines produce over 80% of the nation’s iron, essential for industries like automotive and appliance manufacturing and supporting national self-sufficiency. While the sector is stable, we stay mindful of market changes that could affect demand.
Forestry and logging also play a key role. We support research and development here, partnering with organizations like the Natural Resources Research Institute to explore areas from bioeconomy to sustainable forestry, creating opportunities for new industries.
Manufacturing is another growing sector. Heliene, a solar module manufacturer in Mountain Iron, has expanded with our support, adding jobs and production lines. This area uniquely hosts both one of the largest iron mines and one of the largest solar module manufacturing facilities in the United States. In Hibbing, Detroit Diesel Remanufacturing is also expanding to produce electrical components for vehicles, including EV batteries, building a diverse, sustainable job base across the region.
How do these industry developments align with transportation infrastructure updates in the region?
Transportation is essential here, especially with the ongoing discussions around rail access for companies. Federal infrastructure investments are vital for maintaining our highways and rail systems. Northeastern Minnesota has extensive highway networks that accommodate Canadian trucks, and our rail lines — particularly those from International Falls — are some of the busiest for shipping.
The Duluth port is also crucial for our economy. Our iron ore is shipped out across the Great Lakes, while the port also handles grain and other exports. When new businesses consider locating in the region, they frequently ask about our infrastructure — airport systems, rail, and especially access to the Duluth port. The port’s link to European markets offers companies a strategic advantage, which is a strong selling point for potential investors and partners.
What key initiatives is the agency implementing to create a thriving economic environment?
Our core mission is to reinvest in northeastern Minnesota using resources generated by the mining industry to strengthen our communities. A big focus is on infrastructure — many cities here are over 100 years old, so we’re continually involved in replacing aging water lines and other essential infrastructure, often in partnership with state and federal programs. This foundational work is essential for economic growth.
On the business side, we emphasize recruitment, expansion, and especially workforce development. We collaborate closely with K-12 schools, community colleges, and higher education institutions to ensure a pipeline of skilled workers. For example, we support technical and engineering programs that align with the needs of local employers. We also fund upskilling and training programs, so current employees can continue developing valuable skills, benefiting both them and regional businesses.
What areas are you focusing on to build up the workforce ecosystem?
Broadband access remains a priority in rural Minnesota, where connectivity challenges persist. Federal funding through initiatives like BEAD (Broadband Equity, Access, and Deployment) and our matching grant program will help bring high-speed internet to rural communities, essential for staying economically competitive.
High-speed internet has enabled some employers to shift roles to remote work, attracting new residents who can maintain careers from northeastern Minnesota. It’s encouraging to see families moving here, with children joining local schools and parents working remotely, all thanks to improved connectivity.
Child care is also a major focus, as it directly impacts workforce availability. Our grants help expand child care slots, especially in infant care, where demand often outpaces supply. Some local employers are even extending leave policies to retain employees awaiting child care, emphasizing the need for continued support in this area.
How do you balance preserving the area’s rich history and culture while fostering economic growth?
Our mining heritage is not only our past but also our present and future. Iron ore mining continues to shape the region, and we’re committed to supporting it while also exploring new applications, such as iron-air batteries and energy storage solutions, that align with advances in green technology. We’re eager to back companies innovating in these areas, alongside the traditional mining essential for steel used in appliances, infrastructure, and more.
Beyond mining, we’re focused on expanding manufacturing jobs and attracting companies like Heliene and Detroit Diesel Remanufacturing, which bring high-quality jobs that help retain local talent. We also recognize the critical role of healthcare and public sector jobs and actively support nursing programs through our community colleges to meet local demand in these essential fields.
What are some of the biggest challenges the agency is facing, and how are you addressing them?
Our main challenges are workforce availability and housing. Workforce shortages are intensified by low unemployment and an aging population in rural areas. To address this, we’re using our housing program to attract and retain workers, supported by quality-of-life initiatives for those relocating here. Training is also key — we partner with local schools and colleges to equip people with the skills our industries need. We’re selective about the jobs we recruit, prioritizing high-paying jobs that support families and fit our community values. While competition with other regions is strong, northeastern Minnesota’s quality of life and close-knit community make it a highly attractive place to live and work.
What are your main goals for the agency over the next two to three years?
In the coming years, our priorities will be business and industry recruitment, housing expansion, and community infrastructure investment. We’re also exploring emerging industries that align with the evolving energy economy, such as bioeconomy and forestry-based sectors. Companies like Heliene and Detroit Diesel Remanufacturing reflect the new directions we’re supporting, and we’re eager to attract additional businesses that can make use of our region’s natural resources.
Recently discovered helium deposits in northeastern Minnesota add a valuable resource for the state and nation, even if not a major workforce driver. We’re also optimistic about non-ferrous mineral deposits and hope to see future mines open safely to meet growing demand for minerals critical to solar technology and electric vehicles. With a focus on reshoring and building domestic supply chains, Minnesota is positioned to play a key role in supporting national priorities.
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