Cleveland-Cliffs Inc. expressed it's disappointed that the United Steelworkers of America have called a strike at Wabush Mines in Canada.

The United Steelworkers of America initiated the strike on July 5, idling Wabush Mines' mining and concentrating facilities in Labrador, Newfoundland. This action was followed by a strike that idled the Wabush pelletizing and shipping facilities in Pointe Noire, Que.

Randy Kummer, Senior Vice President—Human Resources stated, "We are very disappointed that the Steelworkers have chosen to discontinue negotiations and have taken this drastic action, particularly since monetary proposals have not been exchanged. The union has elected to take its 575 members out on strike solely over efficiency issues."

Wabush Mines is owned jointly by Stelco Inc. (44.6%), Dofasco Inc. (28.57%) and a subsidiary of Cleveland-Cliffs (26.83%). Wabush has the capacity to produce 6 million tons of iron ore pellets per year. Wabush Mines was most recently projected to produce 5.7 million tons in 2004, and has produced approximately 2.7 million tons thus far this year. It is currently projected that for each week the mine is idle, annual pellet production will be reduced by an estimated 120,000 tons with Cliffs' share being approximately 32,000 tons. The financial impact on Cliffs' pre-tax earnings is estimated to be approximately $500,000 per week.

Wabush Mines remains committed to resolving the current labor dispute and is ready to return to the negotiating table as soon as possible. The company's foremost desire is to reach a settlement with the Steelworkers that will protect jobs and secure the mine's future.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.