Magnetation LLC filed for bankruptcy on May 5. The company recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins on northern Minnesota’s Iron Range and owns iron ore concentrate plants in Keewatin, Bovey, and Grand Rapids, Minnesota, and an iron ore pellet plant in Reynolds, Indiana. The Reynolds, Indiana, plant has capacity to produce 3 million mt/y of high-quality fluxed iron ore pellets.
Magnetation LLC is a joint venture between Magnetation Inc. (50.1%) and AK Iron Resources LLC, an affiliate of AK Steel Corp. (49.9%). The company expects to maintain normal operations during a bankruptcy restructuring process.
“We are pleased to have reached an agreement with our noteholders on the terms of a balance sheet restructuring through a Chapter 11 reorganization,” Magnetation CEO Larry Lehtinen said. “The significant decrease in global iron ore prices along with our existing capital structure has created a challenging business environment in the short term. The reorganization process will create a more competitive and successful company. We remain firmly committed to serving our customers and to being a good employer by maintaining safe, productive operations as we undertake this process. We appreciate the ongoing dedication of our employees, whose hard work is critical to the success and future of our company.”