Cliffs Announces Long-Term Pellet Supply Contract with AK Steel
08/28/2013 - Cliffs Natural Resources Inc. has entered into a new agreement with AK Steel 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.
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."
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.
