(PHOTO: Steel Dynamics)
Mesabi Nugget, a unique newer iron nugget plant on Minnesota’s Mesabi Iron Range, announced yesterday it will shut down for about 6-8 weeks, waiting to burn off excess supply in a sluggish market and rough financial situation.
Officials say the shutdown will begin sometime in February or March. The plant employed about 130 people last year.
John Myers reports this story in the Duluth News Tribune. It seems parent company Steel Dynamics’ own financial situation is part of the reason for the idling.
With taconite prices falling this year, it wouldn’t be a surprise to see other temporary shutdowns around the Range over the next couple years. These things seldom happen in isolation. This is part of the cyclical nature of resource extraction. Most in the business are prepared to handle these stretches, but the resulting economic slowdowns and company efficiency measures have gradually eaten away at the Iron Range economic base over recent decades.
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