CLEVELAND – September 20, 2013 – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) stated that the decision by the Mining and Lands Commissioner related to its Chromite Project in Ontario, Canada, is disappointing and one that threatens the development of the Ring of Fire mining district. The Company’s proposed north-south all-weather road, which crosses unpatented mining claims of KWG Resources and other resource companies, is essential to the development of the Ring of Fire and a necessary component of Cliffs’ Chromite Project. Cliffs disagrees with the decision and contends that this is not an appropriate use of mining claims under Ontario’s Mining Act. Further, the Company sees no conflict between the legitimate uses of a mining claimholder and the proposed road, which has great benefits for Northern Ontario.
“Without access to the surface lands to develop the needed infrastructure, there is no project. Our proposed development has the scale needed to develop the road access and is therefore a catalyst for other smaller mining opportunities in the Ring of Fire. Cliffs is very disappointed in this decision, but beyond our project, it is clearly an issue for anyone interested in seeing these opportunities in the Ring of Fire becoming realities,” commented Bill Boor, SVP Global Ferroalloys with Cliffs. “While we are open to possible solutions, without a pathway developing quickly to overcome this major setback, it is going to be difficult for us to justify continuing with
the project at this point in time.”
The Company stated that the proposed 340 km all-weather road is a critical component of its overall project which includes the development of a mine and processing operation at the mine site, a transload operation in the Greenstone area, and a Ferrochrome Processing Facility in Capreol (near Sudbury). Cliffs believes the infrastructure is necessary to provide access to the Ring of Fire, not only for Cliffs’ proposed project, but for other possible mining and business opportunities in the region, for the Ontario government, and for remote First Nations communities in the Far North.
The Company indicated that with an investment of this scale, its project holds tremendous future opportunity for Ontario. Cliffs’ Chromite Project is projected to provide approximately 1,200 direct jobs and significant economic benefit opportunities for First Nations, resource companies and stakeholders in the region, as well as the province as a whole. In addition, it is projected that significant development opportunities for the First Nations communities in the region will also occur.
“From the beginning, Marten Falls disagreed with the staking of mining claims along the corridor without our consultation,” commented Chief Eli Moonias of Marten Falls First Nation. “Now, the decision by the Ontario Government, that allows these claims to effectively block development of infrastructure that will be of great benefit to our community, is unacceptable. While we have a long way to go with questions about the environmental impacts as well as the future benefit agreement before our community supports the development, we have decided to work with Cliffs to address these questions. The decision along these historically contested claims to once again block our interests is troubling to say the least.”
As previously disclosed, Cliffs has temporarily suspended the environmental assessment activities due to delays related to the environment assessment process, land surface rights, and stalled negotiations with the Province of Ontario.
About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.
The Company is organized through a global commercial group responsible for sales and delivery of Cliffs’ products and a global operations group responsible for the production of the minerals the Company markets. Cliffs operates iron ore and coal mines in North America and an iron ore mining complex in Western Australia. In addition, Cliffs has a major chromite project, in the feasibility stage of development, located in Ontario, Canada.
News releases and other information on the Company are available on the Internet at:
http://www.cliffsnaturalresources.com
SOURCE: Cliffs Natural Resources Inc.
COMMUNICATIONS CONTACTS:
Patricia Persico
Director, Global Communications
(216) 694-5316
Jennifer Mihalcin
Cliffs Natural Resources
Public Affairs Representative
(807) 768-3006