I suspect what you are seeing are taconite pellets. I was told that iron ore was easily made into taconite, which is about 30% iron and was more economical to ship than ore. Once at the steel mill, the taconite was made into steel via processes that were too complex to be done near the mines.
What I know for a fact is that taconite balls make awesome sling shot ammunition! It would take us about a half hour to find a 1 lb coffee can full of them.
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