Large Iron County employer suspends operations, leaving many searching for work

CEDAR CITY, Utah (KUTV) — One of Iron County's largest employers has suspended operations, leaving more than 100 local workers searching for work and raising concerns about ripple effects through the region's economy.

Utah Iron announced Wednesday it is pausing mining operations at its Iron County facility due to what company leaders called "unprecedented and insurmountable" global market fluctuations.

"We are navigating uncharted waters with unfamiliar and seemingly insurmountable risk," the company said in a press release. "While it pains us to suspend our current mining operations, it is a necessary step while we regroup and adjust to the current market pressures."

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While Utah Iron's press release stated the company employs hundreds, co-owner George Adams told Iron County Today the actual number is closer to 150 workers at the mine, with an additional 50 employees based at the port in Long Beach, California. Those California-based workers were also laid off.

According to Utah Iron's statement, the mine's closure will not only affect direct employees, but also other businesses through the supply chain, including railroad and sea shipping.

David Johnson, Economic Development Director for Cedar City and Iron County, said the county is working with Utah Iron and the Department of Workforce Services to help displaced employees find new positions.

"Utah Iron has partners and other businesses they're working with to place employees," Johnson said. "Their employees are probably their first priorities with something like this."

Johnson said that his office is working to mitigate the economic impact of this closure.

"Utah Iron is not only a large employer in Iron County, but they also are a major contributor to imports and exports throughout the region," Johnson said. "Anytime a company is having a suspension or a closure or some type of shift where they’re may be employees looking for employment, we are concerned about that."

He emphasized that while the suspension is a setback, Iron County's economy is more diversified than it was during a similar mine closure in the 1980s.

"We've built a much more resilient economy since then," he said. "We have strength in manufacturing, retail with our historic downtown, and a variety of other businesses. So if one sector of the economy is impacted, then these other sectors can help buoy up and take some of that impact."

According to data provided on the Cedar City economic snapshot website, as of September 2024, mining constituted 1% of the county's employment, or 180 jobs.

The largest job sectors in the county include government, trade and transportation, leisure and hospitality, and education. Manufacturing makes up 10% of the jobs in the county.

Johnson added that his office is collaborating with state agencies, local universities, and workforce training programs to identify job openings and help workers match their skills with available roles.

"One of the great things about Iron County is our economic diversity. That allows us to respond quickly when something like this happens," he said.

Jared Mendenhall with the Utah Department of Workforce Services said that the Utah Labor Market is currently strong, with Utah outperforming the nation and Iron County outperforming the state.

"Iron County is performing even better than Utah, with a really low unemployment rate of 2.7%, and the job growth is better than Utah at 3.1%. In comparison, the nation, unemployment is at 4.1% and job growth is only at 1.3%

Despite this strong labor market, Mendenhall recognized how difficult suddenly losing your job can be, especially when an entire sector is paused.

"Even though there may be a strong economy, if you’re one of those people facing a layoff, it can feel very stressful, and what we want people to know is that there are a lot of available opportunities," Mendenhall said.

He recommends visiting jobs.utah.gov, where there are currently 35,000 job openings.

The Department of Workforce Services is also hosting a virtual job fair on May 1, from 10 a.m. to 1 p.m. More details can be found at jobs.utah.gov.

In the meantime, he said anyone who has been let go from work at no fault of their own is eligible for unemployment insurance.

"That can help you bridge the gap between the end of one job before you start another job," Mendenhall said.

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