CLEVELAND, Aug. 27, 2013 /PRNewswire/ -- Cliffs Natural
Resources Inc. (NYSE: CLF) (Paris: CLF) announced today that
it has entered into a new Agreement with AK Steel (NYSE:
AKS) to supply iron ore pellets from 2014 through 2023. The new
Agreement includes minimum and maximum volume iron ore pellet
purchases from Cliffs, as outlined in the Agreement. Cliffs will
continue to supply AK Steel with iron ore pellets for the remainder
of 2013 and 2014 under the previous Agreement between the two
companies.
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Also, the new Agreement provides a pricing mechanism for the
volumes sold in the contracted years. The annual price will be
determined by a formula-based pricing mechanism, where the annual
price is adjusted by multiple factors including seaborne pricing
for iron ore and certain producer price indices.
Donald J. Gallagher, Cliffs'
president — global commercial, said, "We are pleased to announce
this long-term supply agreement and the extension of the previous
contract with our valued customer, AK Steel. Our U.S. Iron Ore
operations will continue to be a reliable supplier of high-quality
iron ore pellets to AK Steel for many years to come."
About Cliffs Natural Resources Inc.
Cliffs Natural
Resources Inc. is an international mining and natural resources
company. A member of the S&P 500 Index, the Company is a major
global iron ore producer and a significant producer of high- and
low-volatile metallurgical coal. Cliffs' strategy is to continually
achieve greater scale and diversification in the mining industry
through a focus on serving the world's largest and fastest growing
steel markets. Driven by the core values of social, environmental
and capital stewardship, Cliffs associates across the globe
endeavor to provide all stakeholders operating and financial
transparency.
The Company is organized through a global commercial group
responsible for sales and delivery of Cliffs' products and a global
operations group responsible for the production of the minerals the
Company markets. Cliffs operates iron ore and coal mines in
North America and an iron ore
mining complex in Western
Australia. In addition, Cliffs has a major chromite project,
in the feasibility stage of development, located in Ontario, Canada.
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. Although the Company believes that its
forward-looking statements are based on reasonable assumptions,
such statements are subject to risks and uncertainties relating to
Cliffs' operations and business environment that are difficult to
predict and may be beyond Cliffs' control. Such uncertainties and
factors may cause actual results to differ materially from those
expressed or implied by forward-looking statements for a variety of
reasons including without limitation: uncertainty or weaknesses in
global economic conditions, including downward pressure on prices,
reduced market demand and any slowing of the economic growth rate
in China; trends affecting our
financial condition, results of operations or future prospects,
particularly the continued volatility of iron ore and coal prices;
our ability to successfully integrate acquired companies into our
operations and achieve post-acquisition synergies, including
without limitation, Cliffs Quebec Iron Mining Limited (formerly
Consolidated Thompson Iron Mining Limited); our ability to
successfully identify and consummate any strategic investments and
complete planned divestitures; 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 modifications to sales contract pricing escalation
provisions to reflect a shorter-term or spot-based pricing
mechanism; the impact of price-adjustment factors on our sales
contracts; changes in sales volume or mix; 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; 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; availability of capital and our ability to maintain
adequate liquidity and successfully implement our financing plans;
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 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.
News releases and other information on the Company are available
on the Internet at: http://www.cliffsnaturalresources.com
Follow Cliffs on Twitter at: http://twitter.com/CliffsNR.
SOURCE Cliffs Natural Resources Inc.