Cliffs Natural Resources Moves Up Restart Schedule for Idled Mine
06/09/2016 - Iron ore miner Cliffs Natural Resources will reopen an idled Minnesota mine two months sooner than planned after securing third- and fourth-quarter orders from a new customer, the company announced on Thursday.
In a statement, Cliffs said that it now plans to restart its United Taconite facility in August, rather than in October.
The decision was prompted by third- and fourth-quarter orders from U.S. Steel Canada (USSC), which began buying iron ore pellets from Cliffs earlier this year. With the new orders, Cliffs will fulfill the majority of the steelmaker’s pellet requirements for year's second half. USSC had been a captive client of its former parent company, United States Steel Corporation, which mines its own iron ore.
“We are very pleased to announce an increase of our pellet supply to U.S. Steel Canada, who became a new Cliffs' client in 2016,” said Cliffs’ chairman and chief executive Lourenco Goncalves in a statement.
Goncalves last month said the company planned to restart the mine in October, owing in part to a new long-term supply agreement with ArcelorMittal.
With the orders, Cliffs is revising its 2016 sales estimate to 18 million long tons, up from 17.5 million long tons. It also increased its production estimate to 16.5 million long tons.
“The vast majority of the steel companies in North America are currently enjoying stronger order books, and their demand for high-quality iron ore pellets from a reliable supplier is increasing. With that, Cliffs' business continues to gain very positive momentum, with the improvement of the existing business with our long-established clients and the addition of new ones," Goncalves said.
United Taconite was idled last summer on account of market conditions.
The decision was prompted by third- and fourth-quarter orders from U.S. Steel Canada (USSC), which began buying iron ore pellets from Cliffs earlier this year. With the new orders, Cliffs will fulfill the majority of the steelmaker’s pellet requirements for year's second half. USSC had been a captive client of its former parent company, United States Steel Corporation, which mines its own iron ore.
“We are very pleased to announce an increase of our pellet supply to U.S. Steel Canada, who became a new Cliffs' client in 2016,” said Cliffs’ chairman and chief executive Lourenco Goncalves in a statement.
Goncalves last month said the company planned to restart the mine in October, owing in part to a new long-term supply agreement with ArcelorMittal.
With the orders, Cliffs is revising its 2016 sales estimate to 18 million long tons, up from 17.5 million long tons. It also increased its production estimate to 16.5 million long tons.
“The vast majority of the steel companies in North America are currently enjoying stronger order books, and their demand for high-quality iron ore pellets from a reliable supplier is increasing. With that, Cliffs' business continues to gain very positive momentum, with the improvement of the existing business with our long-established clients and the addition of new ones," Goncalves said.
United Taconite was idled last summer on account of market conditions.
