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Layoffs strike Minnesota mines: Over 75% of U.S. Steel dependent on these workers

Jacob Shelton March 21, 2025

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Workers carry steel rods on July 10, 1984, that will reinforce the $50 million One Nashville Place office building. Robert C.H. Matthews Jr. and the Edward J. DeBartolo Corp. of Youngstown, Ohio, are developers of the project.

Hibbing, MN – Minnesota lawmakers from both sides of the aisle have expressed concern and outrage after the announcement of nearly 600 layoffs at two Iron Range mining facilities. The state confirmed that 597 steelworkers will be temporarily laid off from the Hibbing Taconite Company (HibTac) in Hibbing and the Minorca Mine in Virginia, with the potential for permanent job losses by late May.

Cleveland-Cliffs, the owner of both mines, cited an “excess accumulation of iron ore from 2024 and the need to rebalance working capital through consumption of surplus pellets” as the reason for the layoffs, according to the State Rapid Response Team.

The news has prompted strong reactions from state and federal politicians. Republican state Rep. Spencer Igo, who represents Hibbing, called the announcement “devastating” and attributed the job losses to state and federal policies. “We need leadership that prioritizes American workers, strengthens our local industries, and brings stability back to our economy,” Igo stated.

DFL state Sen. Grant Hauschild, representing the Iron Range and the Arrowhead, took to social media to express his solidarity with the affected workers. “When steelworkers hurt, we all hurt,” Hauschild said. “Our steelworkers have always been there for us, and now it’s our turn to be there for them.”

Democratic U.S. Sen. Tina Smith described the layoffs as a “punch in the gut to Minnesota,” highlighting the significant role these mines play in the national steel industry. “These mines produce over 75% of the iron ore used to make steel in this country,” Smith said, emphasizing the ripple effect of the layoffs on the broader economy. “For every mining job, an estimated 1.8 jobs are created. So these layoffs will affect everyone.”

Smith also placed partial blame on the Trump administration’s tariffs, arguing that they have negatively impacted U.S. manufacturing and created significant uncertainty in the market.

The layoffs will impact 255 jobs at HibTac and 342 jobs at Minorca, according to Cleveland-Cliffs. The announcement has sparked concerns about the economic stability of the Iron Range and the future of the region’s mining industry.

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