U.S. Steel’s MinnTac facility is the largest active iron ore operation in the United States, and “king” of the Iron Range mines of Northern Minnesota. (PHOTO: U.S. Steel)
The Mesabi Daily News reported yesterday that a number of laid off miners at Minntac were called back to work this week to perform scheduled maintenance projects. In this case, the miners are replacing outside contractors who otherwise would have been hired for the work.
The so-called word on the street always was that idled workers at U.S. Steel’s Minntac and Keewatin Taconite properties will be back on the job no sooner than October. The MDN reports that some union officials think that stockpiled ore is starting to run out, portending an earlier start, but the company isn’t confirming any of that.
Even if workers are called back this fall or even earlier, the fact that iron ore is still trading around $50/ton will have deep long term effects on the Iron Range mining workforce. Immediate orders for ore will need to be filled, but the whole region is looking at a period that might need less ore, not more. Most of the kerfuffle over mining regulations and lease cuts for mining companies during the last legislative session was fueled by unusually high lobbying activity by U.S. Steel in particular as they try to cut costs to become profitable again.
Nevertheless, many of the workers laid off come from young families, and the fact that some will be able to earn regular pay again is unmitigated good news in the short run.
Speak Your Mind