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Northshore Mining extends shutdown again
Date: 5/6/2009
Cliffs Natural Resources Inc. (NYSE:CLF) (Paris: CLF), today announced the current shutdown at its Northshore Mining Company will be extended through early July, 2009. Northshore Mining is located in Silver Bay and Babbitt, Minn.
Northshore initiated a six-week shutdown in April, reducing production to approximately 3.7 million tons in 2009. Today's announced operations curtailment will reduce 2009 projected pellet production to approximately 3.2 million tons.
"This is an unfortunate, but necessary action as a result of the reduced industry demand for iron ore pellets," said Donald J. Gallagher, president of Cliffs Natural Resources North American Business Unit. "As a result of the global economic downturn and its effect on our business, we must keep production in line with current demand to ensure the long-term success of Northshore Mining Company."
Due to the production curtailment and extended idling of the facility, workforce adjustments will be required. Currently, Northshore has 120 employees on layoff status with another 280 anticipated to be placed on layoff on May 10, 2009. There will be some employees remaining at the facility during the extended shutdown to continue pellet shipping, perform maintenance and for other non-pellet production functions. The company will offer affected employees the option to volunteer for layoff.
"We are committed to open and timely communications with our dedicated workforce and the employees have shown their commitment to the facility throughout these challenging economic times," stated Mike Mlinar, vice president and general manager of Northshore Mining Company.
Northshore Mining Company, a wholly-owned Cliffs Natural Resources subsidiary, has the capability to produce 5.8 million tons annually when operated at its rated capacity.
