Silver Bay, MN (KDAL) -- A projected 2013 drop in demand for taconite pellets has spurred the shutdown of two production lines at Cliffs Natural Resource in Silver Bay, affecting up to 125 employees through next year.

Plant officials said should demand increase and the iron ore market stabilize, those production lines could be reactivated after next year.

Layoffs begin in January.

Cliffs Empire Mine in Michigan also will temporarily shut down production during the summer of 2013, a move that is expected to impact 500 employees.