Magnetation to Idle Plant 2
It’s another blow to the mining industry in Minnesota.
Magnetation announced Wednesday that the company will idle Plant 2 in Bovey.
The company says the idling could impact up to 163 employees starting at the end of January.
The layoffs could last longer than six months.
Magnetation says it is necessary due to the price and demand of iron ore slipping.
The company says some employees may have opportunities within other areas of Magnetation.
Magnetation filed for Chapter 11 bankruptcy in May.
The move came after the company shut down their Keewatin plant in February.
The announcement came just a day after Cliff Natural Resources announced a massive layoff of 540 people at their Northshore Mining operation.
Lawmakers may convene a special session to debate emergency aid for the hundreds of idled workers.
Governor Mark Dayton issued a statement on a possible special session saying the following:
“Today, Senator Bakk rightly expressed the urgency of the challenges facing communities of color in Minnesota. I thank Senator Bakk and his Caucus for their leadership. I agree that any special session concerning the economic hardships of steelworkers on the Iron Range, should also begin to address the serious economic disparities facing Black Minnesotans.”