Headed by Daniel Guggenheim and with backing from J.P. Morgan and other, the Guggenheim family traced their fortune in copper mining back to 1881 in Leadville, Colorado. They began developing properties throughout the western United States and Alaska and acquired interest in the Nevada Consolidated Copper Company.

Through this they took control of the Nevada Northern, the mine and the smelter from Mark Requa operating the property alongside their many other mining interests. Eventually this would see the Nevada Operations falling under the giant Kennecott Copper Corporation.

Kennecott stood, at that time, as the largest producer of copper in the world. The operations here were grouped into the Nevada Mines Divison.

It was the Guggenheims that selected the spot at McGill as the location of the smelter and the construction of the town. This in turn fundamentally changed how the Nevada Northern operated. New, larger locomotives, including locomotive #93, had to be purchased to haul the ore trains the additional distance from Ely.

Through corporate loopholes, the Nevada Northern Railway was operated as a common carrier railroad owning the general freight and passenger locomotives and equipment. Meanwhile the mining operations owned the locomotives and ore cars and leased trackage and crews to operate the ore trains. Though this, the company could get around many of the requirements for railroad locomotives and cars.

Being a part of Kennecott, the Nevada Northern saw many pieces of rolling stock,locomotives and other equipment being sent out or brought from other Kennecott properties.