"This is absolutely our next logical strategic step, and I will not stop in the next few years until we are there," Goncalves told analysts during a conference call Thursday to discuss the company's third quarter earnings. "We have been exploring this option with potential partners, and are encouraged by the progress we have made."

Goncalves said he believes electric arc furnace operators will be looking for scrap alternatives for two reasons. One, he said, is that they'll need a better feedstock if they are to move further into production of higher-value steel products, such as those demanded by automakers.

Secondly, he said he foresees shifts in the scrap market, with China becoming a bigger consumer and competing with American steelmakers for supply. Therefore, scrap alternatives will become attractive, he said.

At the same time, he said he doesn't believe the integrated mills will be installing new blast furnaces.

"I believe that DRI-fed EAFs are the future of steelmaking in this country, and Cliffs will play an active part in this process," he said.