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OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources IncCliffs Natural Resources Inc.
February 2011
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
“Safe Harbor” Statement under the PrivateSafe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This presentation and accompanying oral remarks contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.These forward-looking statements may be identified by the use of predictive, future-tense or forward-looking terminology, such as “believes,” “anticipates,” “expects,” “estimates,” “intends,”“may,” “will” or similar terms. These statements speak only as of the date of this presentation or the date of the document incorporated by reference, as applicable, and we undertake noongoing obligation, other than that imposed by law, to update these statements. These statements appear in a number of places in this presentation, including the documents incorporated byg g g , p y , p pp p p , g p yreference, and relate to, among other things, the successful completion of the proposed acquisition, our intent, belief or current expectations of our directors or our officers with respect to:our future financial condition, results of operations or prospects; estimates of our economic iron ore and coal reserves; our business and growth strategies; and our financing plans andforecasts. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results maydiffer materially from those contained in or implied by the forward looking statements as a result of various factors, some of which are unknown, including, without limitation:• our ability to successfully complete the proposed acquisition;• our ability to successfully integrate Consolidated Thompson’s operations;• our ability to achieve the synergies of the proposed acquisition;• our ability to achieve the strategic and other objectives related to the proposed acquisition;• the impact of the current global economic crisis including downward pressure on prices;• the impact of the current global economic crisis, including downward pressure on prices;• trends affecting our and/or Consolidated Thompson’s financial condition, results of operations or future prospects;• the outcome of any contractual disputes with our customers;• the ability of our customers to meet their obligations to us on a timely basis or at all;• our ability to maintain good relationships with Consolidated Thompson’s customers following consummation of the acquisition;• our actual economic iron ore and coal reserves;• the success of our business and growth strategies;• our ability to successfully identify and consummate any strategic investments;
d h i l• adverse changes in currency values;• the outcome of any contractual disputes with our significant energy, material or service providers;• the success of our cost-savings efforts;• our ability to maintain adequate liquidity and successfully implement our financing plans;• our ability to maintain appropriate relations with unions and employees;• uncertainties associated with unanticipated geological conditions related to underground mining;• the potential existence of significant deficiencies or material weakness in our internal control over financial reporting; and• the risk factors referred to in the “Risk Factors” section of our documents filed with the Securities and Exchange Commission.
f d h d l d l f h f d k h h d d ff l f h h ' l dReference is made to the detailed explanation of the many factors and risks that may cause such predictive statements to turn out differently, set forth in the Company's Annual Report andReports on Form 10-K, Form 10-Q and previous documents filed with the Securities and Exchange Commission, which are publicly available on Cliffs Natural Resources' website. Theinformation contained in this document speaks as of today and may be superseded by subsequent events.We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in our forward-looking statements maynot occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.The information concerning Consolidated Thompson, including Cliffs’ expectations relating to the impact of the completion of an acquisition of Consolidated Thompson, contained in thisrelease has been taken from or based upon publicly available documents and records filed with the Canadian securities regulatory authorities and other public sources at the time of thisrelease and has not been independently verified by Cliffs. Cliffs assumes no responsibility for the accuracy or completeness of such information, or for any failure by Consolidated Thompsonto disclose publicly facts, events or acts that may have occurred or come into existence or that may affect the significance or accuracy of any such information but which are unknown toCliffs We also strongly urge you to not rely on any single financial measure to evaluate our business Please see refer to the appendix for important information
22
Cliffs. We also strongly urge you to not rely on any single financial measure to evaluate our business. Please see refer to the appendix for important information.
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Overview of Cliffs Natural Resources IncOverview of Cliffs Natural Resources Inc.
Cliffs Natural Resources (NYSE: CLF) (Paris: CLF) is an international mining and natural resources company A member of the S&P 500 it is the largest producer ofnatural resources company. A member of the S&P 500, it is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal
Cliffs is executing a strategy designed to increase scale and diversity and focusedCliffs is executing a strategy designed to increase scale and diversity and focused on serving the world’s largest and fastest growing steel markets
The Company boasts a conservatively managed balance sheet with low debt and strong liquidityg q y
With core values of environmental and capital stewardship, our colleagues across the globe endeavor to provide all stakeholders operating and financial transparency as embodied in the Global Reporting Initiative (GRI) framework
3
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources Global Footprint p
Chromite Project
U.S. Iron Ore
Production Commencing in 2015 Canadian Iron
Ore Production Capacity:
5.5Mt
Production Capacity:
24Mt
U.S. Coal Production Capacity:
Brazilian Iron Ore Production Capacity:
Australian Coal Production Capacity:
1.6Mt
Capacity:6.5Mt
= Iron Ore
= Chromite Deposits
1.5Mt
= Coal
Australian Iron Ore Production Capacity:
9.0Mt
4
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs’ Strategic ImperativesCliffs Strategic Imperatives
Building scale through diversification Global execution
S l Gl b l
Multiple Revenue Streams
Product Diversification
Geographic Presence
Competencies of the Firm
Outlook of Personnel
Global Scalability
Scale Through
Diversification
GlobalExecution
Operational ShareholderOperationalExcellence
Operational excellenceSafety
Shareholder returnsShareholder Value
Shareholder Returns
Technical Competencies
Operating Efficiencies
Risk Management
“Earning the Right to Grow”
5
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Impact of Strategic Execution($ in Millions)
$150
($ in Millions)
tion
Share price performance since January 2005 North American Coal
13%
Other4%
Asia Pacific Iron Ore
North American Iron Ore
59%
$90
$120
ines
s ev
olut 24%
2011E
$60
$90
2010
esB
usi
2005
2005Sales: $1,740
2006Sales: $1,922
2007Sales: $2,275
2008Sales: $3,609
2009Sales: $2,342
2007 2008 2009 2010
Sales: $4,682
2011E
Sales: $6.7B
$30
gic
mile
ston
e
Acquired 80% of Portman Limited, then the third largest iron ore mining company in Australia
Acquired 30% interest in Amapá iron ore project in Brazil
Acquired 45% economic interest in Sonoma, hard coking and thermal coal mine in
Acquired remaining stake in Portman Limited (20%)
Acquired remaining stake in United Taconite (30%)
A i d t k i G ld
$347mm in net proceeds from equity offering executed in May
Added to S&P 500 Index
Acquired remaining stake (73%) in Wabush Mines
Acquired Freewest Resources and Spider Resources, world-class chromite assets in
Announced acquisition of Consolidated Thompson, an emerging world-class iron ore producer in Eastern Canada
$0Jan 2005 Sep 2005 May 2006 Jan 2007 Sep 2007 May 2008 Jan 2009 Sep 2009 May 2010 Feb 2011
Stra
teg coal mine in
Queensland, Australia
Acquired PinnOak, Central Appalachian high-quality, low-volatile met coal mines
Acquired stake in Golden West, an Australian iron ore junior mining company
chromite assets in Ontario, Canada
Acquired INR Energy, high-volatile met coal and thermal coal
6
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Year over Year HighlightsCash From Operations
(in millions)
Consolidated Revenues
(in billions)
g g
Financial(2006 to 2010)
$2,700
(in millions)
$6.7
(in billions) Nearly 300% in total shareholder return
144% increase in consolidated revenues
425% increase in cash from operations
$1,320$3.6
$4.7 Strategic GrowthNearly 100% increase in seaborne iron ore exposure from 2006 to 2010
$429$289
$853
$186
$1.9 $2.3 $2.3
p
Completed five iron ore acquisitions
Increased exposure to metallurgical coal pointed at Asian and European markets
Burgeoning Chromite project $186Burgeoning Chromite project
New global exploration activities
7
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliff ’ L t G th St tCliffs’ Long-term Growth Strategy
Cliffs’ strategy: Geographic and mineral diversificationDiversify into other end-markets and Cliffs’ strategy: Geographic and mineral diversification
Minerals Geographies
y
other steel-related minerals
Expand geographically into
l liti l i k hi
NORTH AMERICA
ASIA PACIFIC(AUSTRALIA)
SOUTH AMERICA(BRAZIL)
NORTH AMERICAN
SEABORNEIRON ORE
IRON ORE
SEABORNE MET COAL
low-political-risk geographies
Emphasize cash-flow positive, profitable,
commercial-stage businesses(BRAZIL)MET COAL
SEABORNE FERROALLOYS
Evaluate opportunities in the early stage
of development
88
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Consolidated ThompsonConsolidated Thompson
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Why Consolidated Thompson?Why Consolidated Thompson?
Strategic Operational Financial
Seaborne iron ore
Strategic relationship with leading global steel producer
High-quality concentrate
Open-pit mining
Meaningful earnings and cash flow potential
Strong growth profile
Builds on platform in Eastern Canada
Proximity to Cliffs’ existing Eastern Canadian operating
g g p
Accretive
Constructive mining jurisdiction
Excellent health, safety and environmental record
Significant and achievable synergy opportunities
10
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Consolidated Thompson OverviewConsolidated Thompson OverviewAn Emerging World-Class Iron Ore Producer
One of the fastest developing iron ore producers in North America with over 580 million metric tons o t e ca t o e 580 o et c to sof reserves
Access to Asia market
Profitable and positive operating cash flow in its second quarter of production
Cliffs’ Wabush mine and facilities1
q p
Excellent infrastructure with power, rail and port access capable of supporting growth profile
Expected to double its annual iron ore capacity to an annualized 16 million metric tons
Attractive development opportunities at Lamêlée and Peppler Lake with approximately 935mt of indicated iron ore resources
Expected to be a low-cost producer
1111
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Strategic Diversification in Cliffs’ Core ProductStrategic Diversification in Cliffs Core ProductSignificantly increases exposure to seaborne customers
Major diversification of Cliffs’ client base
b ll ll f l d d h ’ d ld– Substantially all of Consolidated Thompson’s production sold into Asian markets
– Long-term contracts with Wuhan Iron and Steel (Group) Corporation (“WISCO”) and others
Establishes a strategic relationship with one of the leading Chinese steel producers
– WISCO, China’s 3rd largest steel maker is Consolidated Thompson’s largest customer and 25% partner in Bloom Lake
Significantly enhances Cliffs’ growth profile
Consolidated Thompson expected to double production from– Consolidated Thompson expected to double production from current run rate
– Potential further development of reserve base
Expected to be a low-cost producer and globally competitive
Low operating risk and achievable synergies
— Adjacent to Cliffs’ Wabush operation
— Cliffs has mined in Quebéc for 45 years
— Consolidated Thompson has attractive technical characteristics
— Sound regulatory environment
1212
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Diversifying Cliffs’ Product MixDiversifying Cliffs Product Mix(by metric tons)
2009Cliff d t i
2011ECliff d t i
Beyond 2013E1 2 3Cliffs product mix
North American Iron Ore
North AmericanCoal6%
North American Iron Ore
54%A i P ifi
North American Coal13%
Cliffs product mix Cliffs product mix
North American Iron OreAsia Pacific
North American Coal11%
3
62%Asia Pacific Iron Ore
32%
54%Asia Pacific Iron Ore
17%
Iron Ore46%
Asia Pacific Iron Ore
18%
Seaborne Concentrate to Asia
16%
Seaborne Concentrate to Asia
26%26%
1 Based on Cliffs’ 2009 From 10-K reported tons sold by product segment (all figures converted to metric tons)2 Assumes (a) completion of the acquisition; (b) Cliffs’ 2011 guidance disclosed within its 2010 Form 10-K (c) Consolidated Thompson’s June 2010 Feasibility Study3 Ass mes (a) completion of the acq isition (b) Cliffs’ 2011 g idance sed fo 2013 p od ction and (c) completion of Consolidated Thompson’s e pansion p ojects disclosed in J ne 2010
1313
3 Assumes (a) completion of the acquisition; (b) Cliffs’ 2011 guidance used for 2013 production and (c) completion of Consolidated Thompson’s expansion projects disclosed in June 2010 Feasibility Study with total capacity reaching 16 million metric tons
Note: Excludes Cliffs’ Asia Pacific Coal and Amapà
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Attractive Commercial Relationships withpLeading Asian Players
Wuhan Iron & Steel (Group) Corporation (“WISCO”)
Consolidated Thompson’s est. production (metric tons mm)
16
China’s 3rd-largest steel producer – produced more than 30mm metric tons of steel in 2009
WISCO affiliate to purchase minimum of 50% of total annual production for first 8 million tons of iron ore produced each year by Consolidated Thompson
8
by Consolidated Thompson
Worldlink Resources (“Worldlink”)
A leading integrated commercial company that imports and exports iron ore, coal, and other bulk solids
A t t h 7 illi t i t f iAgreement to purchase 7 million metric tons of iron ore concentrate per year over a seven-year period
SK Networks (“SKN”)
Subsidiary of SK Group, South Korea’s 3rd-largest conglomerate ti i t di i f ti t h l di t ib ti
2011E Beyond 2013
operating in trading, information technology, energy distribution, and overseas resource development
Agreement to purchase one million metric tons of iron ore concentrate from the Bloom Lake mine
Source: Consolidated Thompson June 2010 Feasibility Study
1414
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Significant Synergy PotentialSignificant Synergy PotentialExpect to realize ~$75mm in pre-tax annual operating synergies
Conveyor, dock and loading
— Leverage Wabush port and loading capacity
— Lower loading costsg
— Increase loading rates and potential annual shipping tonnage
Capture pellet premium margin
— Potential to feed currently idled furnace capacity at Wabush
Parts, supplies and warehouse efficiencies
Technical expertise, management and administrative tasks
1515
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Transaction OverviewTransaction Overview
Cliffs Natural Resources to acquire all of the common shares of Consolidated Thompson Iron Mines Ltd.
The total transaction value is approximately C$4.9 billion (including net debt)
Consolidated Thompson’s Board has recommended that its shareholders approve the transaction
Consolidated Thompson’s existing off-take agreement with WISCO is expected to continue with Cliffs
– WISCO will continue to hold a 25% partnership interest in Bloom Lake
Transaction
Under the terms of the transaction, Consolidated Thompson’s shareholders will receive C$17.25 per share, C$4.9 billion in aggregate, consisting of all cash
The transaction represents an implied premium of 30% to Consolidated Thompson’s closing share price as of January 10, 2011.
d f f h h b d b
Consideration
Bridge financing for the transaction has been committed by J.P. Morgan
Cliffs expects to access capital markets to arrange permanent financing
It is Cliffs’ objective to maintain current BBB-/Baa3 ratings
Financing
Significant synergy potential with Cliffs’ Eastern Canadian operations
Financial Impact Transaction is expected to be modestly accretive to earnings and cash flow in 2011 and 2012Financial Impact
The transaction is expected to close in early second quarter, subject to satisfaction or waiver of customary closing conditions Anticipated Closing
1616
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Chromite ProjectChromite Project
17
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Chromite Project OverviewCliffs Natural Resources acquired 100% of Freewest Resources and Spider Resources in 2010 with stock and cash
Chromite Project Overview
Freewest Resources and Spider Resources Acquisitions position Cliffs to become the leading North American primary chromite and ferrochrome producer and exporter
Customers would include global stainless steel producers
World-class chromite deposits located in Northern Ontario, Canada– 100% Black Thor– 100% Black Label
73 5% Big Daddy– 73.5% Big Daddy
Anticipate mining 1 million to 2 million metric tons of high-grade chromite ore to produce 400,000 to 800,000 metric tons of ferrochrome annually with a >30-year mine life
Prefeasibility studies and initial First Nation discussions are underway; productionPrefeasibility studies and initial First Nation discussions are underway; production anticipated to commence around 2015
18
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Chromite Project Capital Expenditure Requirements
Estimated capex of $800mm required to develop the site
Chromite Project Capital Expenditure Requirements
Options for financing capex include:– Internal cash flow– Joint-venture partner
Oth fi i l ti– Other financial options
Capex will be deployed only after certain project milestones are satisfactorily achieved
Cliffs has the opportunity to evaluate proceeding with the development of the assets over the next 5 years– Majority of capex spending would occur in 2013 and 2014
19
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Industry OverviewIndustry Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Steel Is a Large Growing Global Business
1,200
Steel Is a Large, Growing, Global BusinessIn 2009, China’s steel consumption was nine times that of the U.S.
S. Korea
800
1,000
onsu
mpt
ion
As countries industrialize, per capita steel consumption increases as GDP per capita expands through h i
JapanChina
Oceania400
600
Kg/
Cap
ita S
teel
Co the maturing process
U.S.Canada
MexicoBrazil
EU 27CISIndia
0
200
2009
0 10 20 30 40 50 602009 GDP Per Capita ($US 000s)
BRIC economic growth is substantial and appears inevitable.
Note: Size of bubbles represents size of absolute 2008 finished steel consumption in each respective countrySource: Metals Strategies, CIA World Factbook
21
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
The Long Term Outlook Remains StrongThe Long-Term Outlook Remains StrongWorld steel demandWorld steel demand(millions of metric tons)
500
1,000
1,500
Source: Metal Strategies
0
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
% of crude steel production
Growth in global steel production using blast furnacesGrowth in global steel production using blast furnaces(millions of metric tons )
75%
100%
1,200
1,400
0%
25%
50%
75%
400
600
800
1,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
22
Source: Metal Strategies
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
North American Steel Producers Are Particularly W ll P iti d t P ti i t i E i R
Production Consumption
U.S. steel supply/demand (mm tons)U.S. steel supply/demand (mm tons)Well-Positioned to Participate in an Economic Recovery
110105 108 108
101 98107 111 114 116
133
119
135
122
110101
113118
123127
66
9298
65
89
2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
Net imports as a % of
consumption17% 12% 19% 11% 9% 10% 9% 10% 10% 11% 11% 11%
Source: Metal Strategies
23
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Steel Center Inventories Remain Low Relative to Hi t i l L l
Months supplyTons (mm)
Service center inventoriesService center inventories
Historical Levels
Months supplyTons (mm)
5
14
16
18
3
4
10
12
24
6
8
10
2
2005 2006 2007 2008 2009 2010
Source: Metal Strategies
24
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Steelmaking Raw Materials Supply-Side ConsiderationsIron ore– New projects commissioned in countries with medium to high sovereign risk
Hi h d f t i i i ifi t it l d l t
Steelmaking Raw Materials Supply-Side Considerations
– High-end of cost curve requiring significant capital deployment– Suppliers farther inland from deep-water ports, economic logistics– Further tightening of Indian supply as increased export restrictions
have emerged
Metallurgical coal– At top of cycle in 2008, Appalachian supplies declined
(mines deeper, seams thinner)– Environmental and safety regulations make permitting more difficult to secure– Other global metallurgical coal basins in challenging political geographies
(Mongolia, Mozambique, etc.)
25
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Pricing for Core Products Has Corrected Sharplyg p yIron ore prices ($/metric ton based on 64% iron content)
200250 Pellets Lumps Fines
$21343%
$203
($ price and % change)
050
100150200
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 E
$20335%
$19349%
Metallurgical coal prices ($/metric ton)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Cliffs and various industry publications/reports
($ i d % h )
50100150200250300 $225
8%
($ price and % change)
050
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
E
26
Source: Metal Strategies, equity research, Company estimates. Pellet pricing assumes an increase of 35% over 2010 pricing. Fines pricing is the Platts spot price as of 2/21/11. Lump pricing assumes a $20 per ton premium on the fines spot price.
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
In SummaryIn Summary
Steel and the raw materials to make it are extremely important
— Building block of society
— Essential to modernization of Brazil, Russia, India and China
Raw materials will continue to be scarce in the long-termg
— Very few meaningful iron ore or metallurgical coal projects came online at the top of the last cycle
— Worldwide economic recovery is resulting in increased demand
Cliffs is well positioned in its current markets and to benefit from the current environment
— Active business development targeting program
— Strong balance sheet and significant financial flexibility
27
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources IncCliffs Natural Resources Inc.
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Appendix – 2011 OutlookAppendix 2011 Outlook
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
2011 Outlook2011 Outlook2011 Outlook Summary
North American North American Asia PacificIron Ore (1) Coal (2) Iron Ore (3)Current Current Current Outlook Outlook OutlookOutlook Outlook Outlook
Sales volume (in millions) 28.0 6.5 9.0
Revenue per ton $140 - $145 $135 - $140 $175 - $180
Cost per ton $65 - $70 $105 - $110 $70 - $75p
(1) North American Iron Ore tons are reported in long tons.(2) North American Coal tons are reported in short tons f.o.b. the mine.(3) Asia Pacific Iron Ore tons are reported in metric tons f.o.b the port.
SG&A Expenses and Other Expectations- SG&A: Approximately $200 million- Global Exploration Group: Approximately $50 million to $55 million- Chromite project: Approximately $35 million- Sonoma Coal partner profit sharing: Approximately $50 million- Full year tax rate: Approximately 30%
Cash from operations- More than $2.7 billion
Capital expenditures- Approximately $700 million, comprised of $300 million in sustaining
it l d $400 illi i th d iy pp y %- Depreciation and amortization: Approximately $360 million capital and $400 million in growth and expansion
30
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
2011 Outlook Capital Projects2011 Outlook - Capital Projects
Iron Ore
— $125 million for extension of Cliffs’ Empire Mine in Michigan to 2014
— $20 million related to increasing production at Wabush to 5.5 million tons by 2013
— $146 million related to infrastructure upgrades at Cliffs’ Koolyanobbing Mine in pg y gWestern Australia
Coal
— $45 million related to bringing Lower War Eagle, a high-volatile metallurgical coal mine in West Virginia, into production
— $16 million related to the mine shaft construction at Cliffs’ Oak Grove Mine in Alabama
— $14 million related to the longwall installation at Cliffs’ Pinnacle Mine in West Virginia
31