Hundreds of steelworkers at two northern Minnesota mines have been notified that they will be temporarily laid off in May.
Earlier this week, Cleveland-Cliffs, one of the nation’s largest steel manufacturers, issued notices that it plans to idle its Minorca mine just north of Virginia, Minn. Further, the company said it will institute a partial idle at its Hibbing mine.
According to a statement from the organization, “These temporary idles are necessary to re-balance working capital needs and consume excess pellet inventory produced in 2024.”
The facilities being idled are used to mine taconite which is turned into iron ore pellets used in the production of steel. In essence, the company’s statement denotes that workers are no longer needed until the excess iron ore pellets produced last year are consumed.
As such, 630 workers will be temporarily laid off. In a letter obtained by WDIO, the company told local officials, “While we anticipate these layoffs will be temporary, we cannot predict their length, which may exceed six months.”
“The decreased domestic steel demand experienced in 2024 has caused Cleveland-Cliffs to accumulate excessive iron ore pellet inventory,” said the letter.
Politicians representing Minnesota’s Iron Range reacted to the news.
“We learned today that 600 of our friends and neighbors will be temporarily laid off at two taconite mines,” said Sen. Rob Farnsworth, R-Hibbing. “The Range delegation will work with the company and unions to help these affected workers where we can.”
“This is devastating for our Steelworkers, families, and our entire Iron Range Community,” said Sen. Grant Hauschild, DFL-Hermantown. “Mining isn’t just an industry here, it’s our way of life.”
“This is a devastating announcement for our region, and my first priority is standing with the workers and families who are facing this uncertainty,” said Rep. Spencer Igo, R-Wabana Township.
Farnsworth expressed disappointment that “another legislator leaked the news to the media before the workers were even informed.” According to MPR, Hauschild broke the news “before the United Steelworkers union had briefed their members.”
On Thursday, The Minnesota Star Tribune published a story about the layoffs. The headline of that article says: “More than 600 Iron Range steelworkers out of work as auto industry cuts orders because of tariffs.”
The story, which discussed President Donald Trump’s 25% tariff on steel, said that “600 Iron Range steelworkers will be out of a job as mines that supply the struggling auto industry go offline.”
Additionally, the article noted that “while Cleveland-Cliffs executives say they expect President Donald Trump’s tariff plans to shift the industry in their favor, tariffs are shaking up the U.S. auto industry and could have downstream effects on American-made steel.”
Lt. Gov. Peggy Flanagan, who is currently running for a U.S. Senate seat, shared the article on social media and said “tariffs are already hurting working families in Minnesota, most recently the 630 steelworkers who were laid off on the Iron Range today. Minnesota’s critical industries, and the workers who support them, are paying the price.”
Gov. Tim Walz made similar comments, saying “tariffs have thrown the auto industry into disarray, and workers on the Iron Range are paying the price.”
When asked if tariffs had anything to do with the layoffs, Cleveland-Cliffs told Alpha News that “tariffs have nothing to do with this decision.”
On its website, the company expresses support for steel tariffs, saying “steel tariffs have long played a crucial role in protecting the U.S. economy, national security, and industrial base from the adverse effects of global steel overproduction.”
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
