US Iron Ore Industry Facing More Worldwide Competition

The 71st Annual Meeting of the Minnesota Section of SME and the 59th Annual University of Minnesota Mining Symposium were held jointly April 14-16, 1998, in Duluth, MN. Registration was estimated at 450 people, about the same as last year's attendance. A short course on mine productivity and a trade show that included about 75 exhibitors were also held in conjunction with the SME meeting. This year's theme was "Iron ore and integrated steel - where are we going?" Although generally optimistic in the near term, the general feeling among the attendees is that the industry faces serious competitive challenges. The iron mining industry in Minnesota experienced a tremendous rebound from the devastating downturn of the 1980s. Today, however, all seven of Minnesota's taconite plants are operating at full capacity. And these high production levels are expected to continue during the next several years. Longer-term, however, Minnesota's producers face an increasingly competitive worldwide market, including stiff competition from Canadian operations. Because of the increasing competition, industry representatives in Minnesota believe that it is critical to strengthen their operations. To accomplish this, companies are looking to: ? Further reduce production costs. ? Bring new technologies into their operations. ? Develop value-added facilities such as direct-reduced iron. ? Expand their markets. The industry is also seeking more collaboration between industry and government. The National Steel Pellet Co. and Minntac are looking at using ported kilns, which would reduce energy consumption significantly. Cleveland Cliffs, EVTAC, Northshore Mining and Minnesota Iron and Steel are all looking at building value-added plants. One such project that received attention among the attendees was Minnesota Iron and Steel's proposed $1.2 billion combined mine, taconite plant, direct reduced iron facility and steel production facility. If the operation is built, it would produce about 3.4 Mt/a (3.39 million ltpy) of direct-reduced iron pellets. Financing is pending. An announcement is expected in the fall of 1998. The pellets, containing 70% iron, would be processed into steel in electric arc furnaces. The steel produced would then be processed into hot-rolled coil, which is used by the appliance and automobile industries. The keynote addresses and technical sessions focused on these issues as well as on environmental issues.