Sunday, October 22, 2006

Where have all the Iron Range jobs gone?

In the Grams-Oberstar debates, one of the arguments is the loss of jobs on the Iron Range. Most of the blame seems that a U.S. Representative should be held responsible for this loss. However, there are technical and economic reasons for a smaller work force.

The biggest technical reason is productivity. One has only to go to the Tower-Soudan mine and compare it to modern open pit mining. The Tower-Soudan mine employed 475 men working three shifts with picks, shovels, and explosives. They loaded the ore into small cars to be hauled to elevators. It closed in 1967 because other techniques were less costly. See Pioneer Mine. Open pit mining involves huge electric shovels loading trucks holding 240 tons of ore. That is less than the fifth of a day's production from the Tower-Soudan mine. See the size of equipment used in "The Taconite Breakthrough".

One economic reason for the reduced Iron Range smaller work force is competition from other sources. Mini-mills produce steel at less cost from scrap metal than the taconite process.

I wonder if a single person in Congress can control forces like these.