Cleveland-Cliffs Approves Investment

The board of directors for Cleveland-Cliffs Inc has approved Cliffs' capital investment in the Mesabi Nugget Project in Minnesota.

The investments and capital expenditures authorized by the board total about $50 million and are contingent upon the project: obtaining non-recourse financing for its capital requirements in excess of equity investments made by the Project participants; and further, the Project's participants reaching mutually agreed upon terms.

Cliffs' equity interest in the joint venture is expected to be approximately 23 percent.

Included in the authorization is up to $21 million in cash allocated for the construction and operation of the commercial nuggets plant. Capital expenditures to expand concentrate production at Northshore to support sales to the project are expected to be $25 million. In addition, capital expenditures of about $4 million have been authorized for rail transportation of concentrate from Northshore to the nugget plant.