Magnetation LLC said Friday it has notified employees about the potential shutdown of its Plant 4 in Grand Rapids and its pellet plant in Reynolds, Indiana.

If implemented, the shutdowns would happen on or after Sept. 30. The Minnesota plant employs about 160 workers while the Indian facility has about 100.

Magnetation also said that it has entered into an agreement with partner AK Steel and other lenders to begin preparing for a wind-down.

The company, which turns old iron mine waste into high-purity iron concentrate, filed for bankruptcy last year. Three of its Minnesota facilities are already idle.

Magnetation says it's continuing to seek additional financing or a buyer.