He’s been through mining downturns — 5 times

“It eats at you. You hurt for the people most affected.”

Hodnik, originally from the Iron Range and a former mayor of Aurora, fully knows and understands the uncertainty that comes with a dip in the mining economy.

Iron Range toughness and resiliency is the bedrock of Hodnik’s character.

“I was born and raised on the Range. The Range courses through the deepest marrow of my bones.

“I get irritated that so many in the state and nation seem to have forgotten the rich legacy of the Iron Range and how much we did for the country. It saddens me,” Hodnik said.

The current mining difficulties won’t last, Hodnik said, just as they didn’t during the other times of woe.

The CEO said the challenges to the Iron Range economy are different with every downturn.

“This one looks uneven and could be a little longer. But you don’t know ... things are harder to predict in the global economy that so impacts us now,” Hodnik said.

“We’ve been through this before. We will come out of it just as strong. But the downturns now can come on quicker and be steeper and harsher.

“This needs to serve as a message that we need to diversify the economy more ... we need to give people hope,” he added.

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Hodnik has helped lead a diversification of the company he runs.

EnergyForward is ALLETE’S road map to a cleaner energy future while keeping electricity affordable.

The company has already exceeded state mandates on renewables through a diversified energy porfolio that includes wind, solar hydro and retooling coal plants to meet new standards.

“We’re bringing more renewable energy online, while also realizing the importance of coal to energy production,” Hodnik said.

The goal of EnergyForward is sources of one-third coal, one-third renewables, and one-third natural gas.

And that will help ALLETE through this downturn.

“MP is ALLETE’s biggest engine and MP, like the rest of the suppliers, is impacted and we are having had to make internal adjustments,” Hodnik said.

The CEO is concerned about the lack of diversification of the Iron Range economy.

“Diversification is at an inflection point. We’ve made progress, but not enough. We should always have a strong natural resources-based economy. But we need a more diverse economy on the Range,” Hodnik said.

“The changes and downturns in mining are coming at us much more quickly and the global competition is a big challenge. The rate of change — asymmetrical nature or way forces assemble — is new to our experience. We must meet it.”

Hodnik believes the PolyMet copper/nickel/precious metals project in the footprint of the former LTV Mine will be a big help to the Range economy, as will other

nonferrous projects that could follow. Hodnik is on the PolyMet Board.

But the ALLETE CEO feels strongly that Range leaders need to become more dynamic in promoting economic development.

With that in mind, Hodnik is promoting an economic summit on the Iron Range that would need leadership of the Iron Range Resources & Rehabilitation Board and representatives of industry, economic development, government and politics.

“Ours is not a problem of needing more lobbyists, but rather needing a strong organizer and aligner of resources,” Hodnik said.

“We need to get agreement on the current state of affairs and alignment. We have foes who are organized to alter our natural resources way of life,” he said of certain environmental groups and their liberal supporters, especially in the Twin Cities.

“They are focused and well resourced. Our own lack of cohesiveness, focus and organization in the wake of those challenges is our biggest problem.

Hodnik stressed that community, business and political leaders need to take a good look in the mirror and then develop a common cause.

“We have too many groups and misaligned groups. We must get our act together,” Hodnik said.

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Hodnik said he was “blessed” to grow up on the Iron Range and benefit from good schools.

He grew up knowing the environment of Minnesota Power. His dad worked at what was then known as the Aurora Steam Electric Station, before there even was the City of Hoyt Lakes. It would morph into the Laskin Energy Center in Hoyt Lakes.

“I remember bringing dinner pails to my dad who was an equipment operator and locomotive engineer at the Aurora plant. He dumped the first train of coal at Aurora Steam.

“My dad was a tough Iron Ranger. Dad was a good and gentle man and soft-spoken. My mother was more of the organizer. I think I got a good scoop of both of them,” the CEO said.

Hodnik’s career with Minnesota Power included working at the Laskin Energy Center in Hoyt Lakes, the Boswell plant in Cohasset and the Duluth headquarters.

“Having been laid off during one of these cycles, I feel terrible for those who have lost their jobs. I suppose it can be said, this CEO knows both the personal and company ends of the problem very personally,” Hodnik said.

And now Hodnik is leading a company that he has been with for decades and respects immensely.

“I learned early on that Minnesota Power has the values, principles and strong leadership that I learned from and wanted to live with in the workplace.

“I was humbled being asked by the ALLETE Board to serve in this role back in 2009 and remain humbled today to lead such a storied and impactful 110-year-old company. I feel a real sense of obligation,” Hodnik said.