The ownership of a lease to build an iron ore processing facility in Crystal City has changed.
Jim Kennedy, who had been doing business with the city as Wings Enterprises and Upland Wings, is out. A story with all the details about Kennedy’s departure from the project will be on Page 1 of the Jan. 12 Jefferson County Leader.
Kennedy had signed a 100-year lease with Crystal City to develop the former PPG Industries site in December 2007 in exchange for $2.2 million, which the city used to buy the former glass plant site.
Under terms of the lease, Kennedy agreed to have a smelter in operation within five years.
A groundbreaking was held at the site in 2010, but there has been no construction.
Kennedy said Monday he is not involved with the project.
“I am no longer involved in the iron ore part of the business,” he said. “I can’t comment beyond that. I do retain some interest in the PPG property, but I intend to pursue the rare earths elements and nonferrous metals side of the business.”
Kennedy said he would release more information concerning his plans in one or two weeks.
“In this strange world we live in, I am not authorized to make statements about any of that at this time,” he said. “I will be able to say more in a week or two, so I am not going to go into any of that right now.”
The lease – and a majority interest in the Pea Ridge Mine in Sullivan that would have provided the raw iron ore for the processing facility – has been acquired by the Alberici Group Inc. of St. Louis County and MFC Industrial Ltd. of Vancouver, Canada.
Rene Randall, vice president of MFC, confirmed that the lease ownership has changed.
“That (lease ownership change) was part of the transaction,” Randall said.
Randall said he couldn’t comment on his company’s plans until a feasibility study is complete and appropriate paperwork is filed with the Canadian government.
“We’re obviously very enthusiastic about the Pea Ridge property and everything involved in it,” he said. “We wouldn’t have bought it if we thought otherwise.”
A press release indicated that MFC paid $13 million for its share of the mine, lease of the PPG property and a lease of land along the Mississippi River to develop a port in Crystal City. Alberici, which had filed numerous lawsuits against Kennedy’s companies, has an equal share.
Jim Frey, senior vice president of the Alberici Group, referred all comments to MFC.
Crystal City Mayor Tom Schilly would not comment Monday.
“I don’t know much more than what is in the press release,” he said. “I haven’t been able to confer with our city attorney or Alberici yet. I look to talk with them within the week.”
-- Story by Steve Taylor; Photo by Ted Howell
