Cliffs Natural Resources Inc. Announces its First HBI Production Plant in the Great Lakes Region
June 15 2017 - 6:00AM
Business Wire
Cliffs Natural Resources Inc. (NYSE:CLF) announced today that it
has selected a site in Toledo, Ohio for the development of its
first hot briquetted iron (HBI) production plant. Midrex
Technologies was selected to design, engineer and procure equipment
for the new plant, which will have the nominal capacity to produce
1.6 million tons of HBI per year.
Lourenco Goncalves, Chairman, President and Chief Executive
Officer, said, “Today’s announcement marks a very important
strategic milestone for Cliffs as we begin to implement our plans
to be the sole producer of high-quality HBI for the EAF steel
market in the Great Lakes region. We look forward to the strong
margin and earnings potential this new product will generate for
Cliffs shareholders.” Mr. Goncalves added: “We thank Governor John
Kasich, JobsOhio and a number of local partners in the Toledo
community for their efforts to help advance this project, including
an offer of approximately $30 million in grants and other financial
incentives. We will continue to work closely with the State of Ohio
through the environmental permitting process, and are excited to
bring a significant number of high-paying jobs to Ohio.”
Ohio Governor John R. Kasich stated, “This is great news for
Toledo and we’re pleased that Cliffs chose Ohio for their new
investment. In addition to our strategic location and strong
business climate, our low-cost natural gas resources give job
creators in this industry a competitive advantage, something Cliffs
recognized when considering sites for this new technology.”
JobsOhio President and Chief Investment Officer John Minor said
he was thrilled Cliffs chose Ohio for this investment. “The Toledo
Ironville Terminal site is a great location for this first direct
reduced iron project in the Great Lakes Region,” said Minor.
“JobsOhio, along with our regional partner RGP, the Toledo-Lucas
County Port Authority and the City of Toledo are looking forward to
supporting Cliffs as they construct this landmark facility that
will create 130 permanent jobs and more than 1,200 construction
jobs over the next two years."
The estimated investment in the entire project is approximately
$700 million, and Cliffs is currently in discussions with several
passive financial partners. Cliffs anticipates breaking ground for
the construction of the HBI production plant in early 2018, with
the production of commercial tonnage of HBI beginning in mid-2020.
Cliffs considers the brownfield site at the Port of Toledo a
premier location for development due to its relative proximity to
several future customers, as well as its logistics advantages,
including affordable gas availability and access by multiple rail
carriers.
About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is a leading mining and natural
resources company. Founded in 1847, Cliffs Natural Resources Inc.
is recognized as the largest and oldest independent iron ore mining
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. For more
information, visit http://www.cliffsnaturalresources.com
Forward-Looking Statements
This report 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 report, 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
report include, but are not limited to: uncertainty and weaknesses
in global economic conditions, including downward pressure on
prices caused by oversupply or imported products, the impact of any
reduced barriers to trade, the outcomes of recently filed and
forthcoming trade cases, reduced market demand and any change to
the economic growth rate in China; continued volatility of iron ore
and steel prices and other trends, including the supply approach of
the major iron ore producers, affecting our financial condition,
results of operations or future prospects, specifically the impact
of price-adjustment factors on our sales contracts; 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; availability
of capital and our ability to maintain adequate liquidity; our
ability to successfully conclude the CCAA process in a manner that
minimizes cash outflows and associated liabilities; the impact of
our customers reducing their steel production due to increased
market share of steel produced using other methods or
lighter-weight steel alternatives; uncertainty relating to
restructurings in the steel industry and/or affecting the steel
industry; 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; problems or
uncertainties with productivity, tons mined, transportation,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; our
ability to reach agreement with our customers regarding any
modifications to sales contract provisions, renewals or new
arrangements; our actual levels of capital spending; our ability to
successfully diversify our product mix and add new customers beyond
our traditional blast furnace clientele; our actual economic iron
ore reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; our
ability to cost-effectively achieve planned production rates or
levels including, at our HBI production plant; our ability to
successfully identify and consummate any strategic investments or
development projects, including our HBI production plant; our
ability to obtain the investments necessary for our HBI production
plant; changes in sales volume or mix; 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; our ability to maintain appropriate relations
with unions and employees; 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; 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; and the potential existence of significant deficiencies
or material weakness in our internal control over financial
reporting.
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version on businesswire.com: http://www.businesswire.com/news/home/20170615005276/en/
For Cliffs Natural Resources Inc.MEDIA:Patricia
Persico, 216-694-5316Director, Corporate
CommunicationsorINVESTORS:Paul Finan, 216-694-6544Director,
Investor Relations
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