GRAND RAPIDS, Minn. (AP) — 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, Minnesota, and its pellet plant in Reynolds, Indiana, 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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Comments (3)
  1. Democrat Corruption Never Ends says:

    Amid an Obama economy of shutting down businesses so Obama could give billions to the fake bankrupt solar companies like Solyndra… who in turn donated millions to Obama. Pay to Play. Just like Hillary has been doing at the State Dept.

    1. bulldog says:

      Wow, almost nothing in your comment is true, nice work.

      While Solyndra did fail, it cost the US 535 million, not billions, and the U.S. Energy Loan Program run by the Department of Energy is actually turning a nice profit from investments in new clean energy product development.

      The area now hit by job losses as a result of the loss of steel business could provide perfect opportunities for incentive packages for other new clean energy product manufacturers. We could put those folks to work building wind energy and solar energy systems, it would probably require some good home made steel to build those windmills.

      The use of coal is pretty much done, I know people like to blame Obama for that too, but is a direct result of cheaper and “cleaner?” natural gas produced by fracking that we will pay dearly for if we don’t slow down that mistake. Oil will follow the way of coal, if we stopped subsidizing it at the level we do now, clean energy would take over in no time at all, rich people won’t be happy, but so what.

      It’s time to get serious in our thinking about the future and stop whining about the past.

  2. Mike Coxin says:

    Perhaps if Donald Trump didn’t buy all his steel from China these things wouldn’t happen. But then he likes to create jobs in China. He should be the president of China. He squints.