The already bankrupt Magnetation LLC could close its fourth Minnesota iron-ore plant by the end of the month unless new investors step in, according to a filing with the U.S. Department of Labor.
The company, in the filing, warned that Grand Rapids Plant 4 on the Iron Range and a newly expanded plant in Reynolds, Ind., could both face closure.
The Grand Rapids plant opened in December 2014 with the ability to produce 2 million tons of iron ore. If it closes, about 160 workers would lose jobs creating the latest blow to the struggling Grand Rapids-based company and to Minnesota's Iron Range.
Magnetation President and COO Matt Lehtinen said Wednesday that company officials were actively meeting with potential investors in the hopes of finding a solution. Their latest meeting was Wednesday afternoon, and a final decision has not been made.
"We are still battling," he said. "We'll see how this plays out here in the next month."
Magnetation, which began converting iron waste-tailings into usable iron concentrate in 2008, has been hard hit by the global pricing slump seen across the entire iron-ore industry. Magnetation closed its Keewatin Plant 1 in March 2015.
It filed for Chapter 11 bankruptcy protection and shut its Chisholm plant in May 2015. It idled its Plant 2 in Bovey, Minn., in January.
In all, more than 272 Minnesota workers and more than a dozen suppliers have been affected.
