Canisteo Pit near Bovey will receive $3.5 million for construction of a water level management system.

The funds were appropriated as part of the state's bonding bill signed by Governor Pawlenty.

The Minnesota Department of Natural Resources says the money will be used for final design with the goal of building a water level management system by the end of this summer.

Water levels at the pit had been rising in recent years, and local and state officials feared the pit could overflow and possibly flood parts of Bovey.

The DNR and Iron Range Resources are working with local governments through the Western Mesabi Mine Planning Board to make decisions that will lead to construction of the system.

“The cooperation between the local communities, county and state agencies should allow us to reach a good solution within the next few months,” DNR Commissioner Mark Holsten said.

He assured local residents that there is not a public safety problem with the Canisteo Pit at this time.

Holsten also said the DNR does not believe there is any danger of a pit wall failure that would result in flooding.

DNR and the Western Mesabi Mine Planning Board will oversee an independent pit wall stability analysis.

“That analysis, along with installing several groundwater monitoring wells and reconstruction of the Holman Creek Diversion, will give us the final pieces to the solution for water level management for the long term,” said Holsten.

“Once the water management system is in place, monitoring of the system will continue so that citizens can be assured they will not be adversely affected by the water in the Canisteo Pit,” said Iron Range Resources Commissioner Sandy Layman. “Iron Range Resources and the DNR will keep local residents informed of progress throughout the summer.”