Cleveland-Cliffs said it would temporarily idle two of its Iron Range mines and taconite pellet plants and lay off 630 workers.

The iron ore mining and steel-making company said it would idle its Minorca Mine in Virginia and “partially idle” Hibbing Taconite in Hibbing, Cliffs spokesperson Pat Persico said in a statement Thursday morning.

“These temporary idles are necessary to re-balance working capital needs and consume excess pellet inventory produced in 2024,” Persico said. “630 employees will be impacted following the completion of the 60-day WARN period. We remain committed to supporting our employees and communities while monitoring market conditions.”

The Worker Adjustment and Retraining Notification Act requires employers with more than 100 employees to give a 60-day notice to workers if a plant is closing or a layoff affects 50 or more employees.

Earlier in the day, state Sen. Grant Hauschild, DFL-Hermantown, said in a news release that in addition to excess pellets, the automotive industry, which Cliffs supplies with steel, faces a downturn.

“(Hauschild) is told that temporary idles, and layoffs are necessary to re-balance working capital needs and consume excess pellet inventory produced in 2024,” Hauschild’s office said. “The automobile industry is facing one of the most challenging economic conditions in recent history and the Iron Range supplies much of the pellets necessary for that industry.”

The Trump administration has imposed, then delayed, 25% tariffs on goods from Canada and Mexico. The levies, expected to take effect April 2, could drive up the price of vehicles and disrupt the industry’s cross-border supply chains.

Auto dealers and the United Auto Dealers are bracing for layoffs as a result of the trade war, the Detroit Free Press reported Wednesday.

Cliffs mines and processes iron ore in northeastern Minnesota and Michigan’s Upper Peninsula and ships its iron to its steel mills further down the Great Lakes. The auto industry buys a significant portion of its steel.

“This is tough news today,” state Sen. Robert Farnsworth, R-Hibbing, said in a news release. “I have been in touch with Cleveland Cliffs leadership as well as union officials, and we are working together to take care of the employees and their families.

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