Cliffs Natural Resources Inc announced that its wholly owned subsidiary, United Taconite LLC, will increase production for the remainder of 2009.
United Taconite has been operating under a 32-hour work week since November of 2008 when one of its two operating furnaces was idled due to the weak demand for iron ore in the steel making process. The anticipated increase in production will allow United Taconite’s 400+ hourly workers to progress towards a 40 hour work week to align with the operational plan.
The ramp up in production will be phased in through the months of September and October. After the Labor Day holiday, mining operations will increase at the Thunderbird Mine, located in Eveleth, MN. In October, production will increase at the concentrator portion of the facility, located at the Fairlane Plant in Forbes, MN. Full start-up of the Line 1 furnace, which has been idled since the end of October 2008, is expected in early November.
Mr Donald J. Gallagher, president of Cliffs’ North American business unit said “Cliffs Natural Resources is pleased United Taconite management and the union have been able to work cooperatively to keep everyone employed during these difficult economic times and avoid layoffs. For the past nine months, United Taconite has operated safely and efficiently despite the tremendous uncertainty about the economy. Today, I thank the employees and the management team at United for their dedication and look forward to bringing back both furnace lines at United.”
United Taconite previously operated as EVTAC Mining Company and was idled in 2003 when EVTAC filed for bankruptcy. Cliffs Natural Resources and Laiwu Steel Group purchased the mine assets and reopened the facility as United Taconite in December of 2003. In July of 2008, Cliffs Natural Resources acquired Laiwu’s ownership interest and wholly owns the facility.
United Taconite employs about 500 people with an annual payroll of USD 57 million dollars and a total annual economic impact to the state of Minnesota of USD 270 million dollars.
