Good news came to Northshore Mining employees this week when Cliffs Natural Resources Inc. announced on March 14 it would restart iron ore pellet operations at its mine in Babbitt and processing/ shipping plant in Silver Bay on May 15.
Workers will be called back as needed, but most will be back within 60 days of the plant’s reopening as production ramps up.
In a news release, the Clevelandbased company said the callback was based on its domestic customers’ demand for iron ore pellets and consistent with its previously announced production plans for the year.
Between Babbitt and Silver Bay, Cliffs Natural Resources’ North Shore iron ore mining operation employ 540 people—470 of whom were laid off when the facilities were shut down in December 2015, with 70 retained to perform general maintenance.
Lourenco Goncalves, Cliffs’ chairman, said, “The avalanche of unfairly traded steel hitting the U.S. since last year negatively affected our clients’ production levels and, as a consequence, affected us. At this time, with the trade cases approaching their final stages and preliminary duties being announced, the volume of unfairly traded steel is starting to subside. As our clients’ order books improve and their need for pellets approach more normal levels, we are pleased to announce that we are bringing back to work our dedicated employees at Northshore.”
While U.S. legislators have been taking action to level the playing field and slow down the illegal dumping of below market steel into the U.S., Cliffs has taken a proactive approach and last year developed a new higher grade pellet at Northshore mining that will be used as feedstock in direct reduced iron (DRI) production.
“Today’s announcement that Cliffs Natural Resources will reopen its idled Northshore Mining operation is great news for Minnesota workers and their families,” said U.S. Senator Amy Klobuchar (DFL). “It also shows that our continued efforts to crack down on the dumping of foreign steel on our shores and to level the playing field for American workers are getting results. We already passed the critical legislation to help but the next step is for Congress to pass our bills to strengthen America’s trade enforcement capabilities and ensure laid-off workers affected by steel dumping receive the support they deserve.”
On the heels of the announcement to restart its Northern Minnesota operations came more good news for the somewhat beleaguered mining company when on March 15 it was announced that shares of Cliffs’ stock jumped as much 14.5 percent on the New York Stock Exchange. The company has suffered from revenue and earnings drops for the last five years during the proliferation of illegal steel dumping in the U.S. and a general downturn in the industry.
“I am hoping that this action is the first of many signs that Minnesota’s taconite industry is recovering,” said Senator Al Franken. “While a recent decision by the Department of Commerce to crack down on illegally dumped foreign steel will help U.S. producers to compete on a more level playing field, we need to do more.”
Minnesota’s Eighth District Congressman Rick Nolan was explicit in his assessment of countries that export subsidized steel. “I am gratified and pleased to see that the pressures we’ve been putting on the International Trade Commission, Department of Commerce and the White House to hold these cheating countries accountable is paying off. We will continue to fight tooth and nail to strengthen our enforcement process to make sure these jobs stay here in Minnesota.”
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