Magnetation, a joint venture between Magnetation and AK Steel, may implement a shutdown of its Minnesota iron ore concentrate plant, rail loading facility and pellet plant located in Reynolds, IN. If implemented, any shutdown would occur on or after September 30, 2016. The company intends to continue operating in the normal course until such time.

In connection with the potential shutdown, the company entered into an agreement with AK Steel, Magnetation and the company’s senior secured lenders to cease operations and implement a wind-down process. Absent securing additional financing and/or a third party purchaser of its businesses, the company will be seeking bankruptcy court approval of the agreement on or before September 30, 2016.

According to related 8-K filing, AK Steel entered into a global settlement agreement with Magnetation in Chapter 11 bankruptcy, Magnetation and JPMorgan Chase, Associated Bank and BMO Harris as lenders under Magnetation’s revolving credit facility. The hearing for bankruptcy court approval is set for September 27, 2016.

“While this was a difficult decision, the company believes that, in light of current circumstances, preparing for a safe and orderly wind-down while we continue to seek an alternative to a shutdown is the best course of action to support what is in the best interests of our employees, creditors and other critical constituents,” said Larry Lehtinen, CEO of Magnetation. “As a result, we are communicating the proper notifications to our employees and the communities. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this shutdown is implemented.”

Magnetation recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation owns three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN.