Cleveland-Cliffs buys 30 percent of ore project

Cleveland-Cliffs Inc has signed a share purchase agreement with Centennial Asset Mining Fund LLC, an affiliate of MMX Mineracao e Metalicos SA, for the ownership of 30 percent of a Brazilian iron ore project, the Amapa Project. The move follows Cliffs' purchase for US$133 million of all shares of Centennial Asset Amapa Participacoes SA, which holds 30 percent of the Amapa Project. The Amapa project is predicted to produce 6.5 million metric tons of iron ore per year. The closure of the deal, which will take place upon completion of project financing, final due diligence, regulatory approvals and other usual closing conditions, is slated for the first quarter of 2007. The Amapa Project will help Cliffs to diversify its operations and to expand its iron ore business globally. Cleveland-Cliffs Inc is the major 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.