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Cleveland-Cliffs emerges victorious in Minnesota land dispute

24th July 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Iron-ore miner Cleveland-Cliffs has emerged victorious in a land dispute about iron-ore holdings that it acquired from Glacier Park Iron Ore Properties (GIOP) in Minnesota, sending the company’s stock up 9%.

Cleveland-Cliffs announced on Monday that the United States Bankruptcy Court for the District of Delaware had reaffirmed its 2017 acquisition of the land in Nashwauk, which it could use to replace depleted resources in future.

Mesabi Metallics, which is trying to revive the former Essar Steel, has objected to the deal between Cleveland-Cliffs and GIOP, arguing that it had a settlement agreement to assume the leases if it emerged from bankruptcy.

However, Judge Brendan Shannon determined that Mesabi’s lease rights terminated on October 31, when it failed to exit bankruptcy. The company only emerged from bankruptcy in December.

The properties acquired by Cliffs include parcels that were previously leased by GPIOP to Mesabi.

The land interests include a combination of undivided and whole fee interests, as well as mineral and surface leases, all lying within the Biwabik iron formation. The acreage acquired is approximately 553 acres and the acreage being leased is approximately 3 215 acres.

Cleveland-Cliffs owns five iron-ore mines in Michigan and Minnesota, producing various grades of iron-ore pellets, including standard and fluxed, for use in blast furnaces.

Shares in the miner traded 9.24% higher at $10.88 each on Tuesday.

The company on Friday reported consolidated revenues of $714-million, compared to the prior year’s second quarter revenues of $471-million. Earnings a share from continuing operations by 171% to $0.76 apiece for the quarter ended June 30, compared with $0.28 apiece in the second quarter of 2017.

Edited by Creamer Media Reporter

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