CLEVELAND, Oct. 19, 2015 /PRNewswire/ -- Cliffs Natural
Resources Inc. (NYSE: CLF) today stated that in July 2015, Cliffs' CEO and three other Cliffs'
executives accepted the invitation by Essar Minnesota's CEO
Madhu Vuppuluri to tour the Essar
Minnesota construction site. As a result of the site visit and
Cliffs' decades of experience in the business, Cliffs believes that
Essar's claims of the project's state of completion are
substantially overstated and, as a result, the projected timeline
for pellet production in 2016 is inaccurate. Cliffs had
previously reported during its second-quarter 2015 earnings call
that until Essar starts producing iron ore pellets at a sustainable
rate, the Essar project in Minnesota is nothing more than a construction
site. This remains Cliffs' position.
The original intention of the State of
Minnesota's loans of $73
million ($67 million from the
state and $6 million from IRRRB) to
Essar was not to subsidize iron ore pellet overcapacity in the
U.S., but to support the construction of a new steel mill in the
Great Lakes region. Media reports failed to state that the
Essar Minnesota project, if it were to come online, would create
iron ore pellet overcapacity in the U.S. It is Cliffs'
position that Essar Minnesota should be required to immediately
repay its construction subsidy due to Essar unilaterally changing
the scope of its project.
Cliffs Natural Resources Inc. clarifies that it does not have
any current plans to permanently idle or close any of its
Minnesota mines.
About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is a leading mining and natural
resources company in the United
States. The Company is a major supplier of iron ore pellets
to the North American steel industry from its mines and pellet
plants located in Michigan and
Minnesota. Cliffs also operates an
iron ore mining complex in Western
Australia. Additionally, Cliffs produces low-volatile
metallurgical coal in the U.S. from its mines located in
Alabama and West Virginia.
Driven by the core values of safety, social, environmental and
capital stewardship, Cliffs' employees endeavor to provide all
stakeholders operating and financial transparency. News releases
and other information on the Company are available at
www.cliffsnaturalresources.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking
statements relate to anticipated trends and expectations rather
than historical matters. Forward-looking statements are
subject to uncertainties and factors relating to Cliffs' operations
and business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause
actual results to differ materially from those expressed or implied
by the forward-looking statements. These statements speak
only as of the date of this release, and we undertake no ongoing
obligation, other than that imposed by law, to update these
statements. Uncertainties and risk factors that could affect
Cliffs' future performance and cause results to differ from the
forward-looking statements in this release include, but are not
limited to: our ability to successfully execute an exit option for
our Canadian entities that minimizes the cash outflows and
associated liabilities of such entities, including the Companies'
Creditors Arrangement Act (Canada)
process; trends affecting our financial condition, results of
operations or future prospects, particularly the continued
volatility of iron ore and coal prices; availability of capital and
our ability to maintain adequate liquidity; uncertainty or
weaknesses in global economic conditions, including downward
pressure on prices caused by oversupply or imported products,
reduced market demand and any change to the economic growth rate in
China; our ability to successfully
identify and consummate any strategic investments and complete
planned divestitures, including with respect to our North American
Coal operating segment; our ability to successfully diversify our
product mix and add new customers beyond our traditional blast
furnace clientele; the outcome of any contractual disputes with our
customers, joint venture partners or significant energy, material
or service providers or any other litigation or arbitration; the
ability of our customers and joint venture partners to meet their
obligations to us on a timely basis or at all; our ability to reach
agreement with our iron ore customers regarding any modifications
to sales contract provisions, renewals or new arrangements; the
impact of price-adjustment factors on our sales contracts; changes
in sales volume or mix; our actual levels of capital spending; our
actual economic iron ore and coal reserves or reductions in current
mineral estimates, including whether any mineralized material
qualifies as a reserve; the impact of our customers using other
methods to produce steel or reducing their steel production; events
or circumstances that could impair or adversely impact the
viability of a mine and the carrying value of associated assets, as
well as any resulting impairment charges; the results of
prefeasibility and feasibility studies in relation to projects;
impacts of existing and increasing governmental regulation and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorization of, or from, any governmental
or regulatory entity and costs related to implementing improvements
to ensure compliance with regulatory changes; our ability to
cost-effectively achieve planned production rates or levels;
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; our ability to maintain appropriate relations with
unions and employees and enter into or renew collective bargaining
agreements on satisfactory terms; risks related to international
operations; availability of capital equipment and component parts;
the potential existence of significant deficiencies or material
weakness in our internal control over financial reporting; problems
or uncertainties with productivity, tons mined, transportation,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; and
other factors and risks that are set forth in the Company's most
recently filed reports with the U.S. Securities and Exchange
Commission. The information contained herein speaks as of the date
of this release and may be superseded by subsequent events. Except
as may be required by applicable securities laws, we do not
undertake any obligation to revise or update any forward-looking
statements contained in this release.
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SOURCE Cliffs Natural Resources Inc.