US iron ore concentrate producer Magnetation is mulling a shutdown of its Minnesota and Indiana facilities, Kallanish learns from a company announcement.

The employees at Magnetation’s three iron ore concentrate plants in Minnesota and its Reynolds, Indiana, pellet plant have been notified via a federal notice requirement of a potential shutdown 30 September.

The 3 million tonne/year pellet plant provides 49.9% Magnetation stakeholder AK Steel with feedstock for its Middletown, Ohio, and Ashland, Kentucky, steelmaking operations.

Magnetation filed for chapter 11 bankruptcy protection in May 2015. AK Steel recently settled an outstanding pellet take-off contract with Magnetation for $37.5 million, freeing AK from its obligations on or about 30 September.

"While this was a difficult decision, the company believes that, in light of current circumstances, preparing for a safe and orderly wind-down while we continue to seek an alternative to a shutdown is the best course of action to support what is in the best interests of our employees, creditors and other critical constituents," says Magnetation ceo Larry Lehtinen. "As a result, we are communicating the proper notifications to our employees and the communities. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this shutdown is implemented."