Cleveland-Cliffs to move production of DR grade pellet to Minorca

[anvplayer video=”5065364″ station=”998130″]

Minorca Mine in Virginia will be taking on a new role in the Cleveland-Cliffs strategy.

They will start producing the DR grade pellet that is needed to feed the HBI facility in Toledo.

Cliffs invested in Northshore Mining in Silver Bay for this production, but CEO Lourenco Goncalves said on Friday that they are moving it to Minorca. The reason is what he called “unreasonable royalties” for the ore that is used at Northshore.

Goncalves said, “Minorca is a great plant with great equipment. Northshore will now work to help Minorca move to DR grade pellet.”

He also said that Northshore will be idled every now and then, and be their swing operation.

Cliffs took control of the Minorca Mine as part of its purchase of ArcelorMittal last year.

Local 6115 out of Minorca said they are excited about the change, and are awaiting more details.

But there is also concern about Northshore. Babbitt’s mayor Andrea Zupanich weighed in. "Whenever they take something away, it’s not necessarily a fantastic sign. Hopefully it won’t affect the employees right now. That’s my biggest concern."