About 600 mine workers laid off on Iron Range as two mines temporarily close
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Cleveland-Cliffs plans to lay off approximately 600 workers at two taconite mines on the Iron Range. The layoffs are the result of the steel manufacturer’s plans to temporarily close its Minorca Mine in Virginia, and also temporarily idle part of Hibbing Taconite.
In a statement, the steelmaker said the “temporary idles are necessary to re-balance working capital needs and consume excess pellet inventory produced in 2024.”
That glut of taconite pellets was caused by decreased domestic steel demand experienced in 2024, the company said in letters to the mayors of Hibbing and Virginia, state economic development officials and the St. Louis County Board of Commissioners.
At the Hibtac mine, 230 union workers and 25 salaried employees are expected to be laid off, while 42 salaried employees and 300 union steelworkers will be laid off from the Minorca mine. The layoffs are expected to take place on May 20, or shortly thereafter.
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“While we anticipate these layoffs will be temporary, we cannot predict their length, which may exceed six months,” added Cleveland-Cliffs vice president Robert Fischer in the letters.
News of the layoffs was first publicized by DFL State Sen. Grant Hauschild of Hermantown, who also attributed them in part to a slowdown in the domestic automobile industry, which heavily relies on Minnesota iron ore to make the steel that’s needed to manufacture cars and trucks.
“Our miners and our mines are the backbone of our communities,” Hauschild told MPR News.
“So when you get news like this that folks are being laid off, that’s not just the miners themselves, that’s our families, that’s our economic engine up here.”
Republican lawmakers from the Iron Range criticized Hauschild for breaking the news before the United Steelworkers union had briefed their members.
“I am deeply saddened that they could not receive the news first and it was instead leaked to the press,” said State Rep. Spencer Igo of Wabana Township.
“I’m being told by Cliffs that the workers will be paid in full until after the 60 day WARN notification expires, at which time they can begin to lean in to unemployment and possible sub-pay benefits, which will be crucial to sustaining their families during this time of uncertainty,” said State Rep. Cal Warwas of Clinton Township.
Warwas added that if the layoffs drag on, the Iron Range delegation plans to introduce a bill for extended unemployment benefits.
Cliffs owns a majority stake in Hibbing Taconite and operates the facility, and is sole owner of the Minorca mine, along with two other mines on the Iron Range.
U.S. Steel owns a small stake in Hibtac, along with two other mines on the Range, including the region’s largest iron ore mine, Minntac in Mountain Iron.
Combined, the facilities employ about 4,000 workers and are a significant economic driver for the region.
Cleveland-Cliffs’ stock has fallen by about 20 percent in the past month, since the company reported weaker-than-expected earnings.
And automakers are contending with 25 percent steel tariffs imposed on steel imported from Canada and Mexico.
Ford CEO Jim Farley told investors earlier this month that even though his company gets most of its metal from within the U.S., it will still feel the effects of the tariffs because its suppliers have global sources for aluminum and steel.
“I’m worried in general about our economy right now,” said Hauschild. “I think there’s a lot of uncertainty happening at the federal level. We don’t know how tariffs will impact our economy, especially in northern Minnesota, and so I’m pretty nervous about what could happen in the future.”
