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U.S. Steel announces September restart for Minntac
WDIO is reporting that U.S. Steel will call back all its laid off workers at Minntac for a September restart of its idled lines at Minnesota’s largest taconite mine and production plant. That date is consistent with estimates of the shutdown’s duration when it was announced earlier this year. U.S. Steel’s other mine at Keewatin…
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Some miners called back to work, but not for mining
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…
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Steelworkers negotiations underway in Pittsburgh
After a spring and early summer in which Iron Range mine owners tightened belts, idled workers and sought relief from taxes and environmental regulations, now we come to a new phase of the region’s simmering crisis. This week in Pittsburgh, the United Steelworkers, the union that represents most Iron Range miners, opened negotiations with ArcelorMittal…
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With contracts looming, Range mines crunch numbers
No matter your job or politics, ten dollars is always ten dollars. By some reports, that’s how much money some Iron Range mines need to shave off their cost for a ton of taconite iron ore to survive the coming global steel industry contraction. John Myers at the Duluth News Tribune reported on this last weekend, highlighting…
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State cuts mining lease costs for U.S. Steel
The Associated Press reports that after a unanimous vote of the state executive council yesterday, Minnesota will reduce the royalties owed by U.S. Steel from 91 cents to 75 cents per ton for iron ore mined from state land. Those royalties pay into funds that support schools and universities in Minnesota. This was the result of a direct…
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U.S. Steel responds to Keewatin Taconite rumors
UPDATE: U.S. Steel spokesperson Courtney Boone just told me that the company did not fire 50 management workers at Keewatin Taconite today. My source was in error. Thus, I am retracting the post for now. The mine really is going into indefinite shutdown next week, however, with some staff staying on for scheduled maintenance projects until…
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A simmering economic crisis on the Iron Range
You know the old saying. If you drop a frog in a pot of boiling water it will hop right out. But if you put a frog in a pot of cool water, gradually turning up the heat, the frog won’t realize it’s boiling to death. Politicians of all stripes have boiled a bog’s worth of rhetorical frogs over the years.…
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Magnetation to reorganize under Chapter 11 bankruptcy
Last week we reported the financial woes of Magnetation, the scram mining and iron ore processing company based on the western Mesabi Iron Range. Their partner and chief customer AK Steel declined to continue putting money into the company and Magnetation began working with financial advisors to keep the company afloat. Rumors were grim, to…
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Dire challenges ahead for Magnetation
The scram mining company Magnetation appears headed for a make or break moment in coming months after partner AK Steel said Tuesday it would not put any more money into the company. Right now Magnetation processes waste rock at old Mesabi Iron Range mine sites into iron pellets that feed AK Steel’s operations in Indiana.…
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The Iron Range is dead; long live the Range
“The king is dead; long live the king.” This saying from the height of European monarchies meant when the person at a nation’s helm physically died, the title lived on with the next person in the royal line. Massive change could be seen as mere progression. This simple continuity kept order even at a time…
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Reeling U.S. Steel asks for relief on state mining leases
Socked by a global iron and steel price collapse, U.S. Steel is asking the state for a reduction in the cost of its state-owned mining leases, which currently fund trusts benefiting Minnesota universities and schools. The company needs to reduce costs by about $25 million to reopen its Iron Range properties. The 114-year-old Pittsburgh-based company announced earlier this…
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Mesabi Nugget stays down; U.S. Steel continues cuts
Business North reports that Steel Dynamics, owner of the Mesabi Nugget plant in Hoyt Lakes, will keep the plant idled as the price of iron remains lower than the cost of production. The idling was announced months ago with the hope that it would end after new equipment was installed during the shutdown. Though the upgrades…
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Iron Range mines must modernize to survive
As the iron mining and steel industries gird for a hard year of low prices and intense international competition, iron mining executives and academics meet in Duluth this week for the Society of Mining, Metallurgy and Exploration (SME) Minnesota conference. WDIO reported on the Tuesday keynote by Don Fosnacht, director of the Center for Applied Research and…
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An uncomfortable truth about Iron Range’s mining woes
Here on the Iron Range one cannot escape the talk of impending layoffs at area iron mines. You also can’t mistake who company officials and unions alike blame for this situation: foreign steel dumping. “Dumping” means foreign companies, sometimes as extensions of foreign governments, sell steel for less than it costs to produce, just to move it off their shores. Usually their…
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U.S. Steel to idle Keewatin Taconite, affecting 400 workers
Today, U.S. Steel announced it will idle its Keewatin Taconite mine and processing plant in 90 days. The mine employs more than 400 people and produces about six million tons of taconite pellets annually. With about five million tons stockpiled on the property this shutdown could last several months unless market conditions improve dramatically.…