White House Chief of Staff Denis McDonough (right) looks on with State Rep. Jason Metsa (DFL-Virginia) during an emotional moment in the press conference after a private meeting with miners and officials focused on the trade issues affecting Iron Range mines. (PHOTO: Screenshot from WDIO story)
On Tuesday, White House Chief of Staff Denis McDonough met privately in Virginia, Minnesota, with local officials, mining executives and Steelworkers.
At issue was the major downturn in the American iron and steel industries related to a collapse in global prices. About 1,500 miners are laid off right now.
One part of the problem is a glut of iron supply all over the world as huge new mines go online in Brazil and Australia. The price drop has also caused many foreign nations with subsidized steel industries to dump cheap steel on the American marketplace at below the cost of production.
Monday, the U.S. Commerce Department ordered new tariffs on unfairly traded steel from China and other nations.
This was a private meeting. A photog friend tried to get in, but was rebuffed. At the press conference afterward McDonough, several political leaders, Cliffs CEO Lorenco Goncalves, and laid-off Keewatin Taconite miner Dan Hill all spoke. Hill had the event’s most emotional message, that after months of hopelessness, he believes there is light at the end of the tunnel for Iron Range mines.
“I gave a speech,” he said. “It was right to the point, asking the chief of staff if he can ensure that my kid, our kids, have a future up here, and we’re not the last mining generation.”
MPR’s Dan Kraker had a good wrap-up for the McDonough meeting.
Time will tell how bad the next year will be for Iron Range mines. Even with increased efforts to enforce tariffs on illegal dumping, the market for iron ore and steel is poor. With huge supplies across the world, our local industry is at the crossroads. What emerges will likely be a smaller, more efficient industry.
I agree that there’s light at the end of the tunnel, but that light won’t just come from lights on the cooling stacks. The light will come from computers, redeveloping downtowns, and schools, too. The light will come from innovation and work, the way it always does.
Politics. Both oil and steel are vital commodities to the US economy. The oil industry is getting crushed and Obama cheers. Oil is largely controlled by republicans. The steel industry sees the same foreign competition and something must be done. Steelworkers support democrats.