Magnetation may shut down plants, loading facility at end of September

By Caroline Salls

Pittsburgh, Aug. 26 – Magnetation LLC may implement a shutdown of its Minnesota iron ore concentrate plant, rail loading facility and pellet plant in Reynolds, Ind., on or after Sept. 30, according to a company news release.

The company said it intends to continue operating in the normal course until the shutdown.

In connection with the potential shutdown, Magnetation said it entered into an agreement with its senior secured lenders, AK Steel Corp. and Magnetation Inc. to cease operations and implement a wind-down process.

Unless it secures additional financing and/or a third-party purchaser of its businesses, the company said it will seek court approval of the agreement by Sept. 30.

“The company believes that, in light of current circumstances, preparing for a safe and orderly wind-down while we continue to seek an alternative to a shutdown is the best course of action to support what is in the best interests of our employees, creditors and other critical constituents,” chief executive officer Larry Lehtinen said in the release.

“We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this shutdown is implemented.”

Magnetation, a joint venture between Magnetation, Inc. and AK Steel Corp., recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. The Grand Rapids, Minn.-based company filed for bankruptcy on May 5, 2015 in the U.S. Bankruptcy Court for the District of Minnesota under Chapter 11 case number 15-50307.

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