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Magnetation might shut down iron pellet plant in Indiana

August 27, 2016

A struggling iron mining operation says it may shut down its last operating facilities in Minnesota and Indiana.

Grand Rapids, Minnesota-based Magnetation LLC said Friday it has notified employees about the potential shutdown of its Plant 4 in Grand Rapids and its pellet plant in in Indiana. The Indiana plant is in Reynolds, about 25 miles north of Lafayette and has about 165 employees, Magnetation President Matt Lehtinen told The Journal-Gazette.

The Minnesota plant employs about 160 workers.

If implemented, the shutdowns would happen on or after Sept. 30.

Magnetation also said that it has entered into an agreement with partner AK Steel and other lenders to begin preparing for a wind-down.

The company, which turns old iron mine waste into high-purity iron concentrate, filed for bankruptcy last year. Three of its Minnesota facilities are already idle.

Magnetation says it's continuing to seek additional financing or a buyer.

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