Business North reports that U.S. Steel announced several strategic decisions today, one of which was to cancel expansion plans at Keewatin Taconite on the Mesabi Iron Range.
From the story:
U. S. Steel executives said they considered its future raw materials needs for iron ore and coke, and found its current production capability sufficient. The previously announced examination of alternative iron and steelmaking technologies such as gas-based, direct-reduced iron (DRI) and electric arc furnace (EAF) steelmaking are not affected by these decisions. The company is seeking permits for the possible construction of an EAF at its Fairfield Works in Alabama.
Other developments announced by U.S. Steel include the shelving of a steel mill project in Gary, Indiana and limited bankruptcy for its Canadian division.
U.S. Steel operates the largest iron ore mine in the United States at MinnTac in Mountain Iron, along with Keewatin Taconite. The moves U.S. Steel has made here are consistent with national signs that the steel industry is preparing for a slowdown. These companies have become so much better at predicting and preparing for these market corrections that this news does not necessarily mean widespread layoffs at Range taconite mines. But … if there were widespread layoffs at Range mines, this is what the beginning would look like.
A few years ago I heard a rumor from someone in my industry that US Steel was having a hard time keeping the estimates for this project under a billion. This project has been all but dead for several years, declining iron ore prices and flatter demand put the final nail in the coffin.