2024: Though headquartered in Cleveland, Lourenco Goncalves’ company has a huge presence on the Iron Range: Cliffs owns three of the state’s six taconite producers. In August, Cliffs offered to acquire its Iron Range taconite competitor, U.S. Steel. The offer was unresolved at press time. Cliffs bought steelmakers AK Steel and ArcelorMittal USA in 2020. Federal regulators might frown on an entity virtually controlling the U.S. iron ore market. Still, taconite is used in just 20 percent of U.S.-made steel. Whatever happens, Cliffs’ future and the Range’s remain closely tied.
2017: Lourenco Goncalves’ business is based in Ohio, not Minnesota. But he’s a frequent visitor to the state, thanks to Cliffs’ longtime taconite-mining operations. It’s been a tough few years for Minnesota’s iron-mining industry; a global steel glut has been the chief culprit. But there’s another problem: The Range’s traditional taconite pellets were designed for old-school mills and don’t work in modern electric-arc steel furnaces. Goncalves sees an opportunity to produce direct reduced iron (DRI) pellets, which fuel electric-arc furnaces, at the bankrupt Essar Steel facility in Nashwauk. But Essar isn’t giving up. Will Cliffs get the chance to open a DRI plant? The Range’s long-term viability could be at stake.