Mesabi Trust Press Release
November 17 2015 - 3:57PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) are reporting that
Cliffs Natural Resources Inc. (“Cliffs”), the parent company of
Northshore Mining Company (“Northshore”), announced today that it
is temporarily idling iron ore pellet production at its Northshore
Mining operation in Minnesota by December 1, 2015. Cliffs stated
that until its domestic customers' blast furnace capacity
utilization rates improve, existing customer demand will be
satisfied from its current pellet inventory.
In its news release today, Cliffs said it anticipates that both
Northshore and the previously idled United Taconite operations
“will be temporarily idled through the first quarter of 2016.”
During that time frame, Cliffs said it will continue to operate
Hibbing Taconite in Minnesota, as well as the Tilden and Empire
mines in Michigan, at normal rates. Cliffs also stated that it
“will assess and adjust its production plans as market conditions
improve.”
Cliffs’ announcement today also said that at its Northshore
operations, it “will maintain minimal staffing during the temporary
idle for basic maintenance duties and for on-going work to support
the DR-grade pellet trials.”
With respect to the remainder of calendar year 2015, Northshore
has not advised Mesabi Trust of its expected 2015 shipments of iron
ore products or what percentage of 2015 shipments will be from
Mesabi Trust iron ore.
This press release contains certain forward-looking statements
with respect to iron ore pellet production, shipments by Northshore
in 2015, and other matters, which statements are intended to be
made under the safe harbor protections of the Private Securities
Litigation Reform Act of 1995, as amended. Actual production,
prices, price adjustments, and shipments of iron ore pellets, as
well as actual royalty payments (including bonus royalties) could
differ materially from current expectations due to inherent risks
such as general and industry economic trends, uncertainties arising
from war, terrorist events and other global events, higher or lower
customer demand for steel and iron ore, decisions by mine operators
regarding curtailments or idling production lines or entire plants,
environmental compliance uncertainties, difficulties related to
obtaining and renewing necessary operating permits, higher imports
of steel and iron ore substitutes, consolidation and restructuring
in the domestic steel market, indexing features in Cliffs Pellet
Agreements resulting in adjustments to royalties payable to Mesabi
Trust and other factors. Further, substantial portions of royalties
earned by Mesabi Trust are based on estimated prices that are
subject to interim and final adjustments, which can be positive or
negative, and are dependent in part on multiple price and inflation
index factors under agreements to which Mesabi Trust is not a party
and that are not known until after the end of a contract year.
Although the Mesabi Trustees believe that any such forward-looking
statements are based on reasonable assumptions, such statements
speak only as of the date of this release, and are subject to risks
and uncertainties, which could cause actual results to differ
materially. Additional information concerning these and other risks
and uncertainties is contained in the Trust’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K. Except as may be required by applicable securities laws,
Mesabi Trust undertakes no obligation to publicly update or revise
any of the forward-looking statements that may be in this press
release.
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