Northsore Mining in Silver Bay to Be Idled Until August

Northshore Mining employs around 570 workers and will have to lay off approximately 470.

SILVER BAY, Minn. – Cleveland-Cliffs Inc. announced on Monday that the company will be idling production at two of its iron ore mining operations, which includes Northshore Mining in Silver Bay. Northshore Mining employs around 570 workers and will have to lay off approximately 470.

They will keep approximately 100 employees to maintain the yard and dock crews for loading vessels and have a small staff for maintenance of the assets and fire watch.

This change is due to the current market conditions created due to the impact of COVID-19.

Cleveland-Cliffs said that unless circumstances change, Northshore Mining production will be idle by mid-April and plan to restart by August of this year.

“We have evaluated market conditions and the extraordinary disruptions in manufacturing and steel production in North America due to the impact of the COVID-19 market shock. As our steel customers rationalize their operations’ capacities, we made the decision to adjust our iron ore production during the first half of the year and not continue to build additional iron ore inventory until market conditions improve. Once the North American steel market improves, Cleveland-Cliffs will be able to quickly restart and ramp up production,” Chairman, President, and Chief Executive Officer Lourenco Goncalves said in a press release.

The other ore mining operation is Tiden Mine in Michigan, which will be idle by the end of April and restart by July 2020.

While production is idle, Cleveland-Cliffs said that it will work down current inventory levels from Northshore Mining and Tiden Mine, and will continue to ship iron ore to fulfill its commercial agreements with steel customers.