Steel Dynamics Idles Production at Mesabi Nugget

Latest Blow to Iron Range, More Than 200 Without Jobs

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“It’s devastating to a lot of people,” said Mayor of Hoyt Lakes Mark Skelton.

Yet another hit to the Iron Range mining industry.

“All we have is our natural resources, and we have to capitalize on our natural resources,” Mayor Skelton explained.

This time, in White Township.

“I really thought it was here for the long haul, I didn’t expect this,” said Edward Kippley, Chairman of White Township.

Steel Dynamics, the 5th largest steel producer in the U.S., announced Tuesday the idling of its Minnesota iron-making operations for at least two years.

“The decision was driven by the economics of the iron-ore pricing, and the resulting pig-iron pricing, which our product directly competes,” explained Vice President of Human Resources at Steel Dynamics, Jeff Hansen.

Leaving 200-plus people at Mesabi Nugget and its production facility in Chisolm without jobs.

“My heart goes out to all of them and I hope that they can survive,” said Mayor Skelton.

And the entire community concerned about the future.

“When a plant like this goes down, all the local vendors go down, too,” Kippley said.

“Checks not clearing, credit cards not being okayed,” said Joni Stutzman, Owner of the Hoyt Lakes IGA.

“People can’t wait two years for another job,” Kippley added.

To those now unemployed:

“All I can say is ‘Thank you,’” Hansen said.

To the 2015 graduates of Mesabi East High School this weekend:

“In my heart, I’m going to be looking out there, and I don’t know how many of those kids are going to be able to stay if they want to,” Mayor Skelton admitted.

To lawmakers who have the power to stop the never-ending ups and downs of the mining industry:

“We need help. We are different that the rest of the state when you look at our job list rate,” added Mayor Skelton.

These layoffs leaving many far from optimistic.

“In order to have a viable community with a hospital, with a school, with people, with young kids, you need the hope, and that is what’s missing,” Stutzman said. 

Steel Dynamics has said it will try to help those who lost their jobs find other employment opportunities at other locations across the country.

Of the 220 employees at these two locations, 10 to 15 will be kept to maintain the facilities and equipment.