Mining Weekly reported that Cliffs Natural Resources will keep its Northshore Mining facility in Minnesota, closed until early July.

Cliffs initially halted operations at the mill for six weeks in April.

The firm said in a statement that the extended shutdown will reduce 2009 production from Northshore to about 3.2 million tonnes of pellets.

Mr Donald Gallagher president of Cliffs North American said that “This is an unfortunate but necessary, action as a result of the reduced industry demand for iron ore pellets.”

Because of the production curtailment and extended idling of the facility, another 280 employees will be placed on layoff on May 10, in addition to 120 workers already on lay off.

When running at full steam, Northshore Mining has the capacity to produce 5.8 million tonnes a year.