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                    <text>�CALAND UNDER DEVELOPMENT

Caland
CANADIAN IRON ORE PRODUCER FOR INLAND STEEL

H eadframe for underground mine.

Close-up of dredge Joseph L. Block.

1959 dredging scene.

Conveyor for open pit.

Mine hoist equipment.

Forty-ton euclid ore truck.

The Caland Ore Company, Ltd., Canadian subsidiary
of Chicago-based Inland Steel Company, began mining operations this spring of a property that will
eventually become Inland's largest source of iron ore.
From a modest annual shipment to the steel plant
of 750,000 tons, Caland will eventually produce 3
million tons of iron ore every year. All of it is destined for the furnaces of Inland's giant steel plant at
Indiana Harbor, Ind., near Chicago, the third largest steel plant in North America.
Inland can now produce 6,500,000 tons of steel a
year at full operations, a rate that requires a comparable amount of iron ore.
Initially the ore will be dug from the lake bottom
and, after crushing, conveyed to a railhead. By 1963
underground mining will start.
\\ hile far apart in distance, (Caland is almost
1,000 miles from Inland's steel plant) the two companies are efficiently linked by the waters of the
Great Lakes.
Caland ore is shipped by Canadian National Railway 140 miles from Atikokan to Port Arthur on Lake
Superior. There it is dumped into the railroad's ore
docks for trans-shipment by lake freighter to Indiana
Harbor-a trip that takes a day less than the runs
from Duluth-Superior.
Caland has invested $50 million over a 10 year
period to develop an ore body which test drillings
indicated would yield at least 30 million tons of iron
ore for Inland Steel. The ore lay beneath the bed of
the Falls Bay area of Steep Rock Lake.
The timetable for the Caland project called for the
removal of 160 million cubic yards of lake bottom
material in five years so that iron ore could be mined
and shipped by the spring of 1960.
Caland has met this schedule in the face of some
of the greatest natural obstacles ever encountered in
such a project. This booklet describes them.

�HEADF'RAME

SCREENING STATION

OPEN PIT MINING

RAIL LINES
TO PORT ARTHUR

SHAFT---+

DRIFT
800 FT.

DRIFT
1000 FT.

PROPOSED DRIFT
1200 FT.

OPEN PIT AND UNDERGROUND MINING AT CALAND

�Discovery
BENEATH A LAKE, A MAJOR SOURCE OF IRON ORE
The Caland ore body lies beneath the eastern arm of
M-shaped Steep Rock Lake whose total ore reserves
are estimated at between one and two hundred million tons. Getting at this rich find took 15 years of
war against the forces of nature and the expenditure
of upwards of $100 million by both Steep Rock Iron
Mines, Ltd., and Caland Ore Company.
The discovery of ore in this lake is attributed to a
Canadian mineralogy professor named Julian Cross
who first surveyed the area in 1930.
For several years Cross drilled through ice and
lake bottom rock to take samples. He proved the
existence of ore. But it seemed inaccessible, lying beneath the waters of a deep lake and 380 feet of glacial
silt, slime, and gravel.
World War II created a need for this ore. Reports
to Washington in 1942 indicated that the United
States might not have enough high grade ore to last
through a long war. Also, a high percentage of ore
boats trafficking between the United States and
South America were being sunk by Nazi submarines.
The post-war dwindling of high grade American
ore reserves in the face of a possible doubling of
America's steel capacity by 1975 added urgency to
the Steep Rock project. More ore would be needed
to feed American iron and steel.making furnaces.
If ore could be mined and shipped from Steep
Rock, mid-continental steel producers, dependent on
Great Lakes shipments, would have additional reserves right in their backyard.
Cross, with three associates, began operations in
1938. Joe Errington, a mine developer was one; the
other two were Major General D. M. Hogarth, and
a young mining engineei:, M. S. (Pop) Fotheringham.
It was Fotheringham who proposed one of the
greatest engineering feats of all time: divert the
Seine River whose waters flowed into Steep Rock
Lake, drain two center arms of the 15 mile long lake

-

FORMER COURSE OF SEINE RIVER

-

PRESENT DIVERTED COURSE

-

STEEP ROCK LAKE

A mineralogy professor from the
University of Toronto, he conducted exploratory drilling in Steep
Rock Lake in 1930, discovered
existence of ore.

and scoop out open pit ore from the dry lake bottom.
The Seine flowed first into Marmion Lake which
emptied into Steep Rock Lake. Fotheringham proposed to dam up Marmion Lake at its lower end, reverse its flow and empty its waters through a manmade channel into nearby Finlayson Lake, which
would be drained into the western arm of Steep Rock
Lake and on to its natural course.
The difficulty was that Finlayson Lake was 33
feet higher than Marmion. Fotheringham proposed
dropping the level of Finlayson 53 feet. He wanted
to cut a channel through the hard rocks under Finlayson and through a series of artificial channels let
the water out. Proposed cost? Ten million dollars.
Hogarth appealed to financier and steel-maker
Cyrus Eaton who persuaded the United States government to lend him $10 million. Then he raised an
additional $3,500,000, needed to start the mine.
After this backing, the Canadian National Railways put in a spur, purchased rolling stock and built
an ore dock at Port Arthur. The Ontario Hydroelectric commission built a power plant and strung
a transmission line from Port Arthur to the Steep
Rock site. Equipment including mammoth dredges
and workers were brought in and work started.
In 1943 the crucial river diversion scheme was successfully completed. An entire system of water control dams was built and dredging began on the two
arms of the lake-a task comparable to the Panama
Canal dredging. In the spring of 1945 iron ore was
shipped down Lake Superior from Steep Rock.

FINLAYSON

CANADA

FALLS BAY
CALAND ORE FIELD

�Development
FIVE YEARS OF DREDGING FOR AN IRON ORE CANYON
Inland geologists inspect map of Falls Bay area.

A team of Inland geologists exploring for Canadian
iron ore in 1948 was briefly excited by some reddish
brown deposits on the shores of Straw Hat Lake, a few
miles south of Steep Rock Lake in western Ontario.
Ralph Archibald, leader of the team, considered
the probabilities of finding ore in the Straw Hat and
weighed them against investing in the development
of a proven ore deposit at Steep Rock Lake. H e knew
that Steep Rock Iron Mines, Ltd., was already mining two ore bodies, but that its "C" body still lay
beneath the waters of one arm of the lake.
It occured to him that perhaps Steep Rock would
agree to an arrangement whereby Inland might develop and mine the "C" ore body on a royalty basis.
He outlined his recommendation to A. J. (Fred)
Cayia, who was then heading Inland's ore mining
and limestone quarrying operations.
Cayia went up to Steep Rock to see the operation
for himself. He foresaw the potential value of Archibald's idea to Inland. The company was looking for
a large source of rich ore that could be shipped directly over the Great Lakes to its steel mill on the
southern shore of Lake Michigan. Such an ore find
was what the company needed to pursue its ambitious expansion plans, encompassing doubling its
steelmaking capacity within 12 years.
Cayia described the Steep Rock development to
his boss, P. D. Block, Jr., then Inland's raw materials vice president, now vice chairman of Inland.
Block liked the idea and took it up with Clarence B.
Randall, then president of Inland. Under Randall
Clarence B. Randall working on Falls Bay area, dredges and pumps lake bottom
silt through pipes extending five miles through wilderness to I armion Lake.

�Specially desi,gned tug boat
kept ice broken in winter
so drilling could continue.
I nl,and geol,ogist inspects l,ake
bottom material for iron ore
during scout drilling period.
Lake bottom silt cascades
into Marmion Lake, five miles
from dredges and pumps.
M argaret Lake tunnel was
carved to divert drainage of one
area into another river system.

and Block's guidance, Inland had built up an independent ownership of an interlocking system of coal,
iron ore and limestone operations, as well as a fleet
of five ore vessels. This system of mine to mill integration had enabled Inland, a once small steel operation, to become, in an industry known for its giants,
the largest independent steel firm in the Midwest.
Randall gave the go-ahead and Inland acquired
an option to lease the property in 1949.
The ore lay beneath the mile square eastern arm
of M-shaped Steep Rock Lake, known as FalJs Bay.
For three years a Canadian drilling team, Boyles
Brothers, performed the laborious job of determining the direction, extent, and tonnage of the "C" ore
body. In the 40-below Canadian winters they plunged
their drills through the thick ice of the lake overlying the ore, and sent them hundreds of feet beneath
the waters, glacial silt and into the ore to "prove
up" the deposit.
Their drillings indicated an ore bed of approximately 30 million tons. For Inland this was the evidence it needed to invest in the ore body's development.
In 1953, P. D. Block, Jr., of Inland and M. S.
Fotheringham, president of Steep Rock Iron Mines,
Ltd., announced that the Caland Ore Company, a
Canadian subsidiary of Inland, had leased the ore
property for 99 years.
Before Caland could get at this ore 160 million

Drilling rig on ice-covered
Falls Bay area in 1955.

cubic yards of clay, silt, and gravel had to be dredged
out and deposited in adjoining Marmion Lake. This
was the core .problem, but it raised others that
seemed just as insuperable. A road had to be slashed
through seven miles of wilderness between Atikokan
and the Falls Bay area, so that the heavy equipment
and the workers could get to the site. The huge
dredges and miles of mammoth steel pipe needed to
carry away the silt had to be brought in. The pipes
could be, but not the dredges so they were brought
in piece by piece, assembled on the shores of the
lake, and launched in 1954. They were christened
Joseph L. Block, for Inland's present chairman, and
Clarence B. Randall, the company's chairman at
that time.
Marmion Lake was available for silt deposit, but
it flowed into the Seine River, already diverted from
Falls Bay by the St-A;ep Rock Company. Something
had to be done to prevent the silt from contaminating the river and destroying it as a scenic attraction and fishing source.
Caland solved the problem by building a series of
dams between islands on the lake, sealing part of it
off for a silt basin whose waters would not readily
mix with the part of the lake that was on the Seine
River course.
Another critical problem associated with dredging
was that of obtaining recharge water. This is water
that is reintroduced into the dredging area to provide the liquid for diluting the silt so it can be
pumped away.

�MARMION LAKE

This water had to be relatively free of silt. (The
ideal dredge burden is about 80 per cent water and
20 per cent solid material.) The recharge water was
obtained through Twin Lakes adjoining Marmion
Lake and was uncontaminated by dredged out silt.
Several other dams were built to prevent water
flow from other lakes into the Falls Bay area. Some
of this water was also diverted from its natural flow
into Falls Bay to the Atikokan River system.
The dredging began in April of 1955. Day and
night, seven days a week, the big dredges worked
cutting into the lake bottom and pumping the silt
through 3 foot diameter pipes, five miles through the
wilderness into Marmion Lake.
In the winter when the Arctic cold built ice surfaces on the lake as thick as three feet, a specially
designed tug boat brought in by railroad smashed
and crushed the ice. This kept the floating pipelines
from freezing into a rigid position locking in the
dredges and preventing them from shifting their
position. Sometimes ice was hauled away by the
truckload to keep the water in the dredging area
free of ice.
Under Caland's agreement with Steep Rock, ore
was to be shipped from the "C" ore body in 1960.
Caland planned to mine initially by the open pit
method until the ore could no longer be removed
economically this way and then change to underground mining.
In 1956 the Patrick Harrison &amp; Company, Ltd., a
firm of mining contractors, was hired by Caland to
sink the underground sh{l,ft. It was dug to a 1,300
feet depth with stations for "drifting" into the ore
body cut at 400, 800, 1,000, and 1,200 feet. Construction of a headframe and service building was undertaken after the shaft was completed.
Meanwhile dredging continued and the lake was
gradually lowered and the first ore was exposed at
the foot of Lime Point on the northern end of the
lake in 1957.
This ore was to be mined by the open pit method.
Trucks would carry it to a crusher which would feed
the ore on to a conveyor system running one mile
to a railhead 450 feet above the mining area. By
mid-1959 open pit equipment was on the site and
stripping operations began. The first ore, shipped on
May 3, 1960 to the loading dock at Port Arthur, fulfills the schedule set in 1949, when Caland first acquired its option.
The swing to undergound operations will start in
1963 and by 1969 Caland expects to ship 3 million
tons a year to Inland Steel's Indiana Harbor works.

CHANNEL

UPPER BASIN A
DAM

RE SERVOIR

UPPER BASIN A
LOWER BASIN A

MINING AREA

Elaborate water diversion system
was built by Caland to protect
dredging area in Falls Bay where
"C" ore body lay. Diagramatic
charts show revised water flow,
dredging progress on lake.
ORIGINAL LAKE LEVEL ELEVATION 1267 FT.
1951 LAKE LEVEL ELEVATION 1120 FT.

MARCH 1960 LAKE LEVEL

GRANITE

GRANITE

�Atikokan
TOP PRIORITIES: MORE CLASSROOMS, NEW HOMES
The name Atikokan, the booming mining town near
Steep Rock Lake, has an aboriginal sound whose precise meaning seems in doubt. fy.fost generally accepted is the derivation, Aticosepi, an Indian word,
whose possible meaning ranges from moose bones to
Caribou- River.
In the late 1800's the town was a division point
for the Canadian National Railway's branch line
between Port Arthur and Fort Frances. In 1899, a
gold prospector, Thomas Rawn, and his wife pitched
their tent and became the town's first settlers. Rawn
later built the first hotel, and after unsuccessfully
trying his hand at sheep farming, resumed prospecting, only to disappear in the harsh muskeg country
of western Ontario.
The community grew undramatic.ally, reaching a
population of only 300 by 1943. But from that year
the population exploded in a decade to 7,000, as
Steep Rock Iron Mines, Ltd., and Caland Ore Company began the development of the Steep Rock iron
range. Within five years, when both mining companies reach full capacity the population is expected
to double.
At present 25 per cent of Atikokan's residents
work for Steep Rock Iron Mines or ·caland. Caland,
with 200 employees currently living in the town, expects to employ more than 1,000 when its mines
reach capacity operations.
What kind of town is it?
A quick automobile tour around its streets provides a clue. There are three banks, several hotels,
a pair of movie houses, and gently curving residential streets lined with brand-new homes. Yet only
a few streets in the town are paved.
Once a year the town council considers paving
plans drawn up many years ago by previous city
planners, only to shelve them. Why? Atikokan's
promising economic future has attracted scores of

�Street paving has been deferred until more class rooms are built for
growing Atikokan children.

young couples, expecting exciting opportunities in a
modern, yet pioneer community. They have given
the town Ontario's highest birth rate (45 per thousand compared with 25 for the rest of the province).
With its inundation of new children Atikokan must
earmark a high percentage of its tax money for schools
instead of paved streets.
One member of the school board described the
problem. "For the last four years, we have either
built a new school or added to an old one each year,
30 new classrooms in all. Right now we have 1,500
pupils in Atikokan grade and high schools, but by
1968 we expect 2,300 in grade school alone."
Atikokan leadership has remained manfully on top
of the pressures for new public facilities demanded
by incoming Canadians. Housing, schools, sewers,
water, sidewalks, and recreational equipment have
all been added to accommodate public needs.
The pressure will increase as Caland adds 1,000
employees after 1960. Each represents a family totaling 3.5 more residents on the average or a total of
3,500. By 1968 Atikokan's population may approximate 20,00~a 300 per cent increase over 1960.
Caland people have assisted a core of dedicated
Atikokan citizens in planning for the town's future.
Former Caland Manager Philip D. Pearson who managed the five-year developmental work was a mem-

Atikokan citizens "liven
up" neighborhoods with
fence painting.

Favorite Atikokan winter
sport is curling-game
imported from Scotland.

Moose painted on wall
of home is appropriate
symbol of Atikokan.

ber of the Municipal Planning Board. E. W. Whitman, currently in charge of Caland's open pit operations, is now a member of the same board. A dozen
other Calanders are active on the recreation council,
chamber of commerce, and other community organizations dedicated to improving the town.
Peter P. Ribotto, a resident of Atikokan and vice
president of Caland Ore Company, is a member of
the board of Atikokan General Hospital and an honorary member of theAtikokan Chamber of Commerce.
A modern paved highway now links Atikokan with
the provincial highway leading to Port Arthur and
Fort William.
Seven years ago Atikokan was accessible only by
railroad. Residents had cars which were bought in
by train, but they were confined to roaming the few
miles of city streets.
The restless drive of Canada swiftly moving toward greater industrialization and raw material development is typified by Atikokan. The people represent many national backgrounds-Canadian,
Scandanavian, Baltic, Slavic, South European and
American. Many share a common aim: The chance
to improve themselves in the most basic of all industrial occupations-the mining of iron ore.

�Great Lakes
LOW-COST, EFFICIENT SHIPPING OF STEEL'S RAW MATERIALS

The world's greatest deposits of high grade iron ore
ring the rim of the northern Great Lakes. They lie
in separate ranges: the Menominee, Marquette and
Gogebic in Michigan, the Mesabi, Vermilion, Cuyuna
in Minnesota, and now the biggest mid-continental
ore find in 25 years, the Steep Rock district near
Atikokan, Ontario.
The availability of these ores to Great Lakes shipping, along with limestone and coal, the other two
basic steelmaking raw materials, enabled the American steel industry to achieve its highest regional
growth in the Midwest. Three of the nation's largest
steel plants, located in the Chicago area on the shores
of Lake Michigan, receive their ore from these ranges.
Transporting the region's annual requirements for
upwards of 30 million tons has given the giant ore
freighter a crucial importance in the logistics of steel.
Long, low, and fast, these vessels annually transport
more tonnage through the Soo Locks between Lake
Superior and Lake Huron than is carried yearly
through the Suez Canal.

�Inland Steel produces most of its iron ore. It operates five underground mines in northern Michigan
and Minnesota: the Morris and Greenwood, near
Ishpeming, the Sherwood at Iron River. the Bristol
at Crystal F°alls, all in Michigan; and the Armour
No. 2 at Crosby, Minnesota. The Caland Falls Bay
operation wilJ be the largest of these with an ultimate annual production of 3 million tons.
Inland also owns with other steel companies operating mines on the Mesabi Range.
Inland Steel has grown rapidly- 100 per cent in
capacity since World War II. Last year it completed
a $300 million modernization and growth program,
encompassing the construction of new automated
rolling mills, raw materials development, and expansion of its steel warehousing and fabricating subsidiaries. This year the company has earmarked $85
million for modernization and expansion.
The Caland development has been a vital part of
lnla,nd' s growth plans, for assured sources of increased tonnages of iron ore are essential to ingot
capacity expansion. Every new ton of capacity brings
a need for an additional ton of iron ore.
The Inland fleet of ore carrying vessels now numbers six with the addition of the giant new Edward
L. Ryerson, soon to be commissioned for service this
year. This new vessel can carry more than a million
tons of iron ore annually in the long runs between
Lake Superior ports and its Indiana Harbor home
port. This means an increase of 36 per cent in the per
trip capacity of the fleet.
Inland's integration with its iron ore sources is
greatly strengthened by Caland. The integration
rests, not only on vast ore deposits, but also the
fresh water routes for iron ore provided by the Great
Lakes.

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