The community is located on the North Shore of Lake Superior. Taconite Harbor is located 33 miles southwest of the city of Grand Marais; and 51 miles northeast of the city of Two Harbors. The community of Schroeder is immediately northeast of Taconite Harbor.
Currently, Taconite Harbor consists of a power plant, foundations and an abandoned basketball court.[2] As of 2009, the Minnesota Power Company is looking towards development on an area that they own, but do not need. This development may include a sewer system, various commercial businesses centered on a village square, paved parking lots, and a City Hall (which would then make Taconite Harbor an incorporated city). The community is also expected to be a major stop along the Gitchi-Gami State Trail.[3]