Economy Takes Toll On Iron Range

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By KBJR Manager

The downturn in global steel markets continues to take its toll on Iron Range mines.

Mining companies are cutting production and jobs.

Last week, U.S. Steel made the decision to idle mining operations in Keewatin.

Which means hundreds of workers are facing unemployment in the coming weeks.

For the most part the mood is cautiously optimistic.

A lot of employees hope the layoff will only last a couple of months.

And the local community is doing what it can to show their support for those workers.

This weekend, Vene-Qua Bar owner Annette Gilbert threw a party for those Keetac employees... some she said, had just finished their last shift of the foreseeable future.

Other local businesses showed their support with donations.

"We wanted to keep morale up, because a lot of businesses depend on them, not only bars, there's a little gas station on the corner, it all has a trickle down effect."

She says the situation hitting the younger employees the hardest.

"The older people have seen this happen before, but they're hoping it's just a four month temporary ordeal."

Many of those workers are keeping an eye on the nation's car industry hoping an upswing there will help get them back on the job.

Gilbert also owns an insurance agency and the news is having an effect there as well.

"I've got someone who just bought a new car, now they won't be able to afford it and insurance, so it's already having an impact on sales."

Michelle, not all Keetac employees will be affected... a small number will stay while the plant is idle... US Steel officials say that's because specific functions have to be maintained to ensure a safe and effective return to service... they just don't know when that will be because it depends on market conditions.

As for the proposed expansion at Keetac, US Steel isn't speculating on the status of that either. Michelle.

Chris what's the situation at the other mines?

Cliffs Natural Resources hasn't announced any layoffs yet... but they have cut production... and at United Taconite, workers there have gone to a 32 hour work week.

Union officials at Hibbing Taconite are working with Cliffs to avoid as many potential layoffs as possible there....

As for the Minorca mine near Virginia, officials with Arcelor-Mittal say there are no workforce or production adjustments there at this time.

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