Bankruptcy court clears way for Magnetation shutdown
A bankruptcy court has cleared the way for Iron Range mining company Magnetation to shut down its remaining operations.
The court on Thursday approved a motion to wind down the company and terminate its pellet purchase agreement with AK Steel.
The company issued a statement saying its focus is now shifting to shutting down its iron ore concentrate plant in Grand Rapids, Minn., and its pellet plant in Reynolds, Ind., to preserve their value for any potential buyers.
The Minnesota plant employed about 160 workers while the Indiana facility had about 100.
Magnetation opened in 2008 with an innovative process for extracting iron from old mine waste. At its peak it employed more than 500 people. But it filed for bankruptcy in May 2015 amid the global steel industry slump.
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