The trade war between the U.S. and China has prompted a Utah iron ore mine to shut down, a move that at least temporarily ends Union Pacific unit train operations between Cedar City, Utah, and the Port of Long Beach, Calif.
Utah Iron LLC announced on Wednesday that it would close the Cedar City mine amid rising Chinese tariffs on imports from the U.S. The mine had been supplying Chinese steelmakers with iron ore.
“We are navigating uncharted waters with unfamiliar and seemingly insurmountable risks. While it pains us to suspend our mining operations, it is a necessary step while we regroup and adjust to current market pressures,” the mining company said in a news release.
UP began handling export ore from the mine to the Port of Long Beach in October 2020.
The service began with 90-car ore trains. UP eventually shifted to operation of 154-car, 21,500-ton ore trains that were more than 8,100 feet long and powered by up to eight locomotives in 3x3x2 distributed power configuration.
The traffic was the top carload commodity for Pacific Harbor Line, the neutral switching carrier that serves the ports of Los Angeles and Long Beach.
Utah Iron LLC announced on Wednesday that it would close the Cedar City mine…”
They are NOT CLOSING the Cedar City mine at Iron Mountain. They are temporarily suspending operations which is totally different than closing down. And they are also preparing to sell to other US steel mills still using raw iron ore and may consider building a concentrator so they can ship taconite pellets. In fact, they are already negotiating with Hyundai on the mill they are building in Alabama for their (and other) car plants as they can’t go the NUCOR route because of the short supply of scrap steel and iron in the country, most if which is already under long term contracts with companies like David Joseph LLC who is Nucor’s main supplier of their electric arc mills in Alabama and Utah.
Noticed the cars are not filled full. Appears UP is using standard hoppers. Is that because the use of iron ore jennies would concentrate loads too heavy for some bridges?.
That is to meet California Air Quality standards which is a hoot since most of the travel is through the desert anyway and the trains run at a restricted speed once they are in California.
It takes how many years to build a new steel mill in the USA? tRump needs to stop screwing around with the global economy!!!
MICHAEL —– You use the word “global” in your post. Spot on, you’ve got it. The 1930 to 1939 Depression was “global”. So will be the next one.
Charles glad to see you are a student of history.
Your pain is only temporary? tRump could drop tariffs next week or the Chinese could retaliate even more. Uncertainty is the bane of investors and EVERYTHING is uncertain today and tomorrow and for the foreseeable future.
I doubt it could happen. I wished we weren’t reliant on foreign companies setting up in the US to supply passenger stock. Although Siemens and Stadler seem to be building a good presence.
Do not worry iron mine workers. Your pain is only temporary until a factory opens making goods previously built in China.
Wow those are (were) massive trains!
Iron ore, coal, grain, LNG, etc. Lots of jobs will be lost because of king trump and his tariffs. As far as the jobs coming back in the form of manufacturing, that would be great. But in the mean time millions of Americans will suffer.