Magnetation may temporarily curtail production on or after Jan. 31

By Caroline Salls

Pittsburgh, Nov. 18 – Magnetation LLC may implement a temporary production curtailment at its Plant 2 facility in Bovey, Minn., according to a news release.

If any production curtailment is necessary, the company said it would occur on or after Jan. 31.

Magnetation said the announcement initiates compliance with the Department of Labor’s Worker Adjustment and Retraining Notification (WARN) Act by notifying local officials and the International Union of Operating Engineers Local 49 of production curtailments and employee reductions.

WARN Act notification is required 60 days in advance under circumstances when there is a potential for layoffs of more than 50 employees for a period in excess of six months.

“While any operating curtailment is unfortunate, we must balance our current production with our customers’ needs to sustain our business in these challenging markets,” chief executive officer Larry Lehtinen said in the release.

“In response to this market uncertainty, we must acknowledge that there is a potential for curtailments and layoffs.

“At this time, there is no way to know how long this potential curtailment may last, but we are hopeful that Plant 2 production would resume in 2016.

“Some employees may have opportunities within other areas of Magnetation.”

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. It is based in Grand Rapids, Minn., and 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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