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Mining Industry Profile: Iron
1-6
is partial list of active iron mines in the United States in 1990. Information provided includes mine
names, owners, operators, commodities produced, and 1990 iron pellet production data (Gardiner 1990;
Michaelis 1990/1991; U.S. DOI, Bureau of Mines 1991b).
Operation capacities tend to be in the range of 1 to 10 million long tons of product per year (ltpy). A
few mines, however, produce less than 100,000 ltpy (Weiss 1985).
Employment at iron mines and mills was approximately 7,300 in 1991. Of the total number of workers,
about 97 percent are traditionally employed in mines and mills in Minnesota and Michigan alone (U.S.
DOI, Bureau of Mines 1988b, 1991a, 1992).

Nearly 98 percent of the demand for iron ore comes from the steel manufacturing industry. Iron is also
a component in the manufacture of cement and heavy-media materials
. Among the 22 mines producing
iron ore, most larger operations produce material for the steel manufacturers. Mines producing for
cement plants tend to be smaller operations located outside Michigan and Minnesota
(U.S. DOI,
Bureau of Mines 1988b, 1991a, 1992).

Approximately 97 percent of all usable ore for the production of iron and steel is now sold in the form
of agglomerated pellets. The remaining 3 percent of higher grade usable ore (wash ores) is sold in
original form directly to blast furnace operations or in the form of other agglomerated products
. On
average, pellets are 3/8 inch to 1/2 inch in diameter and are composed of 63.4 percent iron and
approximately 5 percent silica (U.S. DOI, Bureau of Mines 1988b, 1992b). Other pellet constituents
may include phosphorus, manganese, magnesium, lime, sulfur, and alumina (American Iron Ore
Association 1990).

Iron pellets are becoming more widely traded on the open market as world trade affects the industry
according to the Iron Mining Association of Minnesota. During the 1980's, global competition made
the iron industry more responsive to its market. Foreign competition began to deliver steel products at
a lower cost than domestic sources on the Great Lakes. This prompted the domestic iron and steel
industries to increase productivity through modernization, produce a higher quality product, and lower
overall costs. In the past, each mine produced a standard iron pellet as a product. Now, mines are
producing pellet products that fit the individual needs of blast furnace operations.

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