CLEVELAND, Aug. 15, 2016 /PRNewswire/ -- Cliffs Natural
Resources Inc. (NYSE: CLF) announced today that
its Tilden Mining Company has entered into a new 20-year energy
agreement with WEC Energy Group (NYSE: WEC) to provide
Tilden mine with a long-term,
reliable and affordable source of electrical power in
Michigan.
Lourenco Goncalves, Cliffs'
Chairman, President and CEO, said, "With a significant and
longstanding presence in the Upper Peninsula of Michigan that spans over 160 years, Cliffs'
commitment to operate in the region for many more years to come has
been greatly enhanced through this new energy agreement with WEC
Energy Group. Our Tilden Mine produces among the highest quality
pellets in North America. With a
stable, long-term source of power in place, Tilden will also continue to be the most
operationally efficient producer of pellets for the domestic steel
industry. Today's announcement is a demonstration of the success of
the settlement agreement developed by key stakeholders under the
leadership of the State of
Michigan. Our collaboration with WEC Energy Group, Governor
Snyder and the State of Michigan
has resulted in a strategic energy solution for the Upper Peninsula
which optimizes affordability and improves reliability for all
ratepayers for decades to come."
The Company stated that this agreement will provide Cliffs'
Tilden Mine with a clean, cost-effective and highly efficient
energy generating capacity solution and also resolve the long-term
energy reliability issues facing the residents in Upper Peninsula
of Michigan. Under this agreement
WEC Energy Group, through the proposed Upper Michigan Energy
Resources Corporation plans to construct, own and operate 170 MW of
new natural gas generating capacity across two sites in the Upper
Peninsula. Pending regulatory approvals, the proposed facilities
are expected to commence operation in 2019 which will be in advance
of the retirement of the Presque Isle Power Plant.
With WEC Energy Group's investment in new electric power
generation in the region, the Company stated that there will be
tangible benefits for U.P. residents of a more cost-effective
energy future and negating the possibility of a future System
Support Resource (SSR) related to the operation of the Presque Isle
Power Plant.
About Cliffs Natural Resources Inc.
Cliffs Natural
Resources Inc. is a leading mining and natural resources company in
the United States. The Company is
a major supplier of iron ore pellets to the North American steel
industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also operates an iron ore
mining complex in Western
Australia. Driven by the core values of safety, social,
environmental and capital stewardship, Cliffs' employees endeavor
to provide all stakeholders operating and financial transparency.
News releases and other information on the Company are available at
www.cliffsnaturalresources.com.
Forward-Looking Statements
This release contains
statements that constitute "forward-looking statements" within the
meaning of the federal securities laws. As a general matter,
forward-looking statements relate to anticipated trends and
expectations rather than historical matters. Forward-looking
statements are subject to uncertainties and factors relating to
Cliffs' operations and business environment that are difficult to
predict and may be beyond our control. Such uncertainties and
factors may cause actual results to differ materially from those
expressed or implied by the forward-looking statements. These
statements speak only as of the date of this release, and we
undertake no ongoing obligation, other than that imposed by law, to
update these statements. Uncertainties and risk factors that
could affect Cliffs' future performance and cause results to differ
from the forward-looking statements in this release include, but
are not limited to: trends affecting our financial condition,
results of operations or future prospects, particularly the
continued volatility of iron ore prices; availability of capital
and our ability to maintain adequate liquidity; our level of
indebtedness could limit cash flow available to fund working
capital, capital expenditures, acquisitions and other general
corporate purposes or ongoing needs of our business, which could
prevent us from fulfilling our debt obligations; continued
weaknesses in global economic conditions, including downward
pressure on prices caused by oversupply or imported products,
including the impact of any reduced barriers to trade, recently
filed and forthcoming trade cases, reduced market demand and any
change to the economic growth rate in China; our ability to reach agreement with our
iron ore customers regarding any modifications to sales contract
provisions, renewals or new arrangements; uncertainty relating to
restructurings in the steel industry and/or affecting the steel
industry; our ability to maintain appropriate relations with unions
and employees and enter into or renew collective bargaining
agreements on satisfactory terms; the impact of our customers
reducing their steel production or using other methods to produce
steel; our ability to successfully execute an exit option for
our Canadian Entities that minimizes the cash outflows and
associated liabilities of such entities, including the CCAA
process; our ability to successfully identify and consummate any
strategic investments and complete planned divestitures; our
ability to successfully diversify our product mix and add new
customers beyond our traditional blast furnace clientele; the
outcome of any contractual disputes with our customers, joint
venture partners or significant energy, material or service
providers or any other litigation or arbitration; the ability of
our customers and joint venture partners to meet their obligations
to us on a timely basis or at all; the impact of price-adjustment
factors on our sales contracts; changes in sales volume or mix; our
actual levels of capital spending; our actual economic iron ore
reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; events or
circumstances that could impair or adversely impact the viability
of a mine and the carrying value of associated assets, as well as
any resulting impairment charges; the results of prefeasibility and
feasibility studies in relation to projects; impacts of existing
and increasing governmental regulation and related costs and
liabilities, including failure to receive or maintain required
operating and environmental permits, approvals, modifications or
other authorization of, or from, any governmental or regulatory
entity and costs related to implementing improvements to ensure
compliance with regulatory changes; our ability to cost-effectively
achieve planned production rates or levels; uncertainties
associated with natural disasters, weather conditions,
unanticipated geological conditions, supply or price of energy,
equipment failures and other unexpected events; adverse changes in
currency values, currency exchange rates, interest rates and tax
laws; risks related to international operations; availability of
capital equipment and component parts; the potential existence of
significant deficiencies or material weakness in our internal
control over financial reporting; and problems or uncertainties
with productivity, tons mined, transportation, mine-closure
obligations, environmental liabilities, employee-benefit costs and
other risks of the mining industry. For additional factors
affecting the business of Cliffs, refer to Part I – Item 1A. Risk
Factors of our Annual Report on Form 10-K for the year ended
December 31, 2015. You are urged to
carefully consider these risk factors.
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SOURCE Cliffs Natural Resources Inc.