Cliffs exploring whether to shift some Iron Range mining from taconite to rare earth minerals

Cleveland-Cliffs, the largest player in mining on Minnesota’s Iron Range, is exploring whether the company should shift the focus of one of its mines in Minnesota from taconite to rare earth minerals.

The company said Monday, while announcing its third-quarter earnings, it had studied all its mines and tailing basins and geological surveys at the unnamed mine in Minnesota, plus one in Michigan’s Upper Peninsula, showed potential for rare earth mineralization.

The discovery signals a possible expansion beyond steelmaking into critical minerals production, as President Donald Trump recently added new 25% tariffs on imported medium- and heavy-duty trucks and parts to push more auto production to the United States and raised tariffs on imported steel and aluminum.

On the Iron Range in Minnesota, Cleveland-Cliffs owns the United Taconite mine in Eveleth, Northshore Mining in Silver Bay and Minorca Mine in Virginia. It also has a majority stake and runs Hibbing Taconite in Hibbing.

Moving into rare earth minerals would provide a needed boost for Cleveland-Cliffs and potentially the Iron Range. The company bet big that U.S. steelmaking would expand and increase capacity.

CEO Lourenco Goncalves said it has won major contracts with U.S. automakers and the Department of Defense and believes it will recover from a current down cycle, which resulted in a net loss of $234 million for the third quarter. That slump has resulted in around 600 workers at Cliffs’ Hibbing and Virginia operations losing their jobs.

Rare earth elements, minerals essential for electric vehicles, wind turbines and defense technologies, have become a strategic focus for U.S. policymakers seeking to reduce dependence on Chinese supply chains.

“We believe America’s industrial foundation must never depend on China or any other foreign source for essential minerals. Cleveland-Cliffs is committed to contributing to our independence from foreign powers on critical materials,” Goncalves said in the earnings call.

Cliffs’ investor relations representatives did not immediately respond to questions about which specific mine sites are under consideration. The company employs roughly 30,000 workers across the U.S. and Canada, including Minnesota.

Six of Cleveland-Cliffs’ facilities were shuttered earlier this year as part of an effort to cut expenses by $300 million, including about $20 million in savings from idling the Minorca mine and partly idling the Hibbing operation.

The Hibbing mine remains partly open with about 350 employees. Company officials described the move at the time as a short-term step to manage excess pellet inventory.

Against that backdrop, Cliffs’ announcement that it is exploring rare earth potential at two of its mining sites suggests the company is looking to diversify its portfolio and align with the nation’s push for critical-mineral independence.

He said workers are still reeling from the recent idling of mines and are eager for signs of stability. Many are “watching and waiting” for clearer communication from the company, he said.

A spokesman for the Minnesota Department of Natural Resources said it is aware of potential rare earth minerals on lands that Cliffs controls in Minnesota. But the company did not share any related data or findings with the department.

There already are three proposals for copper-nickel mines in northern Minnesota, none of which are through the permitting process and are opposed by various environmental groups.

The controversial Twin Metals mine backed by multinational Antofagasta would be dug underground in Lake County, between Babbitt and Ely, in the watershed of the Boundary Waters Canoe Area Wilderness. It would produce 20,000 tons of ore a day, including copper, nickel, cobalt and platinum group metals.

NorthMet, proposed by a partnership that includes Glencore and Canadian Teck Resources, would be an open-pit mine near Babbitt, and the mine plan calls for producing 32,000 tons of ore, mostly copper, each day. The ore would be processed at a former LTV Steel site in Hoyt Lakes. The project was first proposed by the company PolyMet.