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08/17/2007Facility extends mine's lifeAssociated Press Writer A company that runs two iron ore mines in Michigan's Upper Peninsula said Thursday it would build a plant there to supply raw materials for the type of mill that makes most U.S.-generated steel. The new facility will extend by at least 15 years the life of Empire Mine, where operations had been expected to continue until 2010, Cleveland-Cliffs Inc. executives said. It will produce iron for "mini mills,” which use recycled scrap as a key ingredient in steel. Previously, the company's mines in Michigan, Minnesota and Canada have made only iron pellets for traditional "integrated” mills, which manufacture steel from iron ore and coke. Integrated mills now generate only about 45 percent of domestic steel, while mini mills account for more than half. "This project furthers one of Cliffs' key strategic objectives to sustain its leadership position in metallics-related processes and should open a very promising and growing new market for our company,” Joseph A. Carrabba, president and CEO, said in a statement. The plant will be a joint venture with the Japanese company Kobe Steel Ltd., which patented the technology that produces nuggets consisting of more than 96 percent iron. The pellets now produced at Empire Mine contain about 65 percent iron. Construction of the new plant will create 300 to 500 short-term jobs, said Don Gallagher, Cliffs' president for North American iron ore. The Empire Mine, in the Marquette County village of Palmer, currently employs about 600. It's uncertain how many of those will remain under the new operation, Gallagher said. At worst, the mine could downsize to about 100 employees in 2010-11, "but we're more optimistic than that,” he said. The work force could be considerably higher, particularly if the new process succeeds and additional facilities are needed, he said.
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