Iron ore surges in world market, but contracts in U.S.

Abstract

Iron ore mining is facing two very different realities in 2003. Seaborne shipments to world markets are booming while North American capacity is contracting. China's growing demand for high‐quality imports is stunning major suppliers. The strong world demand is bailing out the struggling iron ore mines in the United States?

Keywords:

• Iron ore
• China
• U.S
• World trade

Notes

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Metals Bulletin (Thursday, April 27, 2003): pp. 16–17.

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Legacy costs involve pensions and health care for retired workers and environmental clean up at some locations. The Federal government guarantees pensions, but not health care post bankruptcy. The U.S.‐Environmental Protection Agency funds some environmental clean‐up at major “super‐fund” sites.

Personal communication with anonymous source, May 2003.

ISG has ten‐ to fifteen‐year contracts with Cleveland Cliffs, Inc., to supply its iron ore needs. This will come from Hibbing Taconite and Northshore Mines in Minnesota as well as the new combined Empire and Tilden Mines in Michigan. The U.S. mines that are not servicing ISG include Minntac (U.S. Steel), Keewatin Mining (formerly National Steel Pellet Co. of National Steel; now owned by U.S. Steel), Minorca (Ispat‐Inland Steel) and EVTAC (Stelco, Rouge, and AK Steel, but recently closed on May 15, 2003).

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