Cliffs Natural Resources Inc. announced today that through its subsidiaries it has entered into multiple agreements with Minnesota Power, a utility division of ALLETE Inc.
Cliffs has received $31 million in cash as part of a long-term purchased power arrangement for its Northshore operation with Minnesota Power through 2031. The agreements, pending potential regulatory approval of the sale of utility assets, include certain non-core operations; transmission assets at United Taconite; certain land options at United Taconite and Northshore Mining Company; and transportation rights along the Cliffs Erie rail assets. Separately, Cliffs has extended its regulated power arrangements with Minnesota Power for 10 years at its United Taconite and Babbitt facilities.
Lourenco Goncalves, Cliffs' Chairman, President and CEO, said, "I am very pleased that we solidified a strategic relationship with Minnesota Power for long-term, low cost power which helps us preserve our future competitiveness. Importantly, the signing of these new agreements will provide Cliffs with considerable certainty in our energy management for these operations, and will also enable us to continue to improve our cash production costs over the long-term."
Cliffs stated that the supply agreement will not involve any immediate staff reductions at its Silver Bay Power plant.
Cliffs stated that the supply agreement will not involve any immediate staff reductions at its Silver Bay Power plant.