Cleveland Cliffs Inc (CLF)

[Democritus_of_Abdera]

Update on Chippewa/Essar Iron Ore Project…

See:
http://minnesotabrown.com/2017/10/dayton-ok-chippewa-plan.html

http://mn.gov/gov-stat/pdf/2017_09_30_Governor_Dayton_Open_Letter_Iron_Range.pdf

Selected quotes from Minn Gov Mark Dayton’s statement dated Sept 30, 2017:

Chippewa has obtained a Letter of Intent with a Chinese company for a ten-year offtake agreement to purchase a minimum of 4.2 million tons of pellets annually. With this offtake agreement, Chippewa’s products would not compete with other Range taconite operations for the existing US markets.

Chippewa has engaged Tenova S.p.A. to design a Direct Reduced Iron/Hot Briquetted Iron facility at the Nashwauk location. Tenova is a world leader in the construction of DRl/HBI plants. Tenova has made meaningful progress on the design and integration between the DRl/HBI plant and the 7.0 mmpta Metso pellet plant. The design allows the Metso pellet plant to deliver hot DR Grade pellets directly into the DRl/HBI plant.

After very careful review of Chippewa’s progress to date, I believe that they have substantially satisfied its obligations to the Bankruptcy Court and the State of Minnesota. Their progress has been very significant; their securing the necessary financial commitments has been most impressive; their negotiations for an offtake agreement with a Chinese company could open an entire new market for Range production; and their firm commitment to repay contractors $39.5 million next week, altogether are sufficient for me to direct DNR to file with the Bankruptcy Court today the State’s support for the project’s continuation.