Ely History

The Ojibwe, or Chippewa Indians have called the Ely area home for hundreds of years. In the 1700s voyageurs made their way into the area seeking furs - often trading with the Indians for abundant beaver pelts.

After the trappers and voyageurs moved on to other regions in the early 1800s, explorers and prospectors soon moved in. The mid-1800's gold fever that struck other parts of the country led many men to the area to hunt for gold. Unfortunately, the only gold these prospectors found was iron pyrite - fool's gold.

However, prospectors did discover rich and plentiful iron ore deposits along the Laurentian Divide. This very old group of mountains was called the Vermilion Range. An extremely high grade iron ore, first discovered in 1883 near the west edge of what is now known as Miner's Lake, has made Ely and Minnesota famous.

Ely was incorporated as a village in 1888. The initial settlement was near the east end of Shagawa Lake in the area now known as Spaulding. When more ore was discovered farther west, the community was moved to its present location.

At first the settlement was called Florence. When it was learned that another community in Minnesota was named Florence, the name was changed to Ely. The name change was in honor of Samuel B. Ely - a Michigan miner who never actually was in the community which bears his name.

The first mine in Ely to begin shipping ore was the Chandler Mine, which sent out its first cargo in August of 1888. Because the discovery of ore was made near the surface, the mine was an open pit operation. When it was discovered that the ore body went deep underground, shafts had to be put in place for underground mining. As many as 1,200 men were at one time employed locally in the mines.  Nearby Soudan, Minnesota, has a very interesting tour of an underground mine.

These underground mines initiated another industry - logging. The timber was used to support the underground mine shafts. This, in turn, led to the establishment of sawmills. Logging and the increasing sawmill production necessitated increased rail systems. The tracks entering Ely were extended to Winton, where the big sawmills were operated by the St. Croix and Swallow-Hopkins companies. Today, logging continues on a limited scale, with harvesting destined for the production of paper pulp.

Due to the high cost of mining ore underground, the Pioneer Mine, the last of the 11 operating mines in the Ely area, was closed in 1967.

Today, even as the next generation of mining is proposed for the area, Ely and the surrounding area are best known as the world's greatest canoe country and recognized for the area's secluded resorts and unique wilderness area.

Click here for books on the history of Ely and the surrounding area.