Cleveland-Cliffs mines at 100%
Though several North American steel companies have temporarily idled blast furnaces due to reduced steel demand, Cleveland-Cliffs (CC) North American and Australian iron ore mining operations show no indication of letting up. Even with clear signs of softening in the steel business, CC chairman and CEO John S. Brinzo feels confident the company will have little trouble finding a market for his companys product. CC began the year with stacks of orders for all the iron pellets it could manage to produce from its six North American mines. Even if some customers decide they do not need all those pellets, Brinzo said CC should have no problem finding other markets for them. At CCs newly acquired Portman Ltd., Perth, Australia mine, the commitment to Japanese and Chinese companies should keep its production steady for years to come. Shrugging off drooping demand due to inventory reduction, Brinzo noted domestic steel production remains strong while international iron and steel markets is very robust, producing higher iron ore prices. Indeed the companys first quarter ore prices are more than 40% higher than a year ago. CCs five North American mines and one Canadian mine will produce approximately 37 million tons of iron ore pellets in 2005, an increase over 2004s 34.4 million tones. This rise is attributed to CCs 2004 plant expansions. Further expansions are expected as the company is seeking approval to build a new plant in Northern Minnesota.