Cliffs to Expand Production Capacity at Two Iron Ore Mines


As part of a $290-million expansion project announced by iron ore producer Cleveland-Cliffs, the company
will process increased ore output from its Tilden mine using extra milling capacity available at its
Empire facility, shown here. (Photo courtesy Cleveland-Cliffs Inc.)
Cleveland-Cliffs Inc., the largest North American producer of iron ore pellets, announced in mid-July that it plans to move ahead with expansion projects at its Empire and Tilden mines in Michigan’s Upper Peninsula. The project, which requires approximately $290 million of incremental capital investment, is expected to allow the Empire mine to produce at 3 million t/y through 2017 and increase Tilden’s production by more than 2 million t/y. This incremental production is expected to result in total equity production of over 23 million t/y for the company’s North American iron ore business segment. Cliffs said its Empire mine was previously projected to exhaust reserves in early 2011.

As part of the capacity expansion, Cliffs will also mine additional ore from Tilden, located adjacent to Empire, and process it utilizing extra processing capacity at Empire. Utilization of this capacity will enable Tilden to increase production to more than 10 million t/y. Tilden currently has an annual rated capacity of nearly 8 million tons, with an expected mine life exceeding 30 years.

Joseph A. Carrabba, Cliffs’ chairman, president and chief executive officer, said: “Expanding our North American iron ore mining capacity will allow Cliffs to benefit from the strong market environment for steelmaking raw materials. Moreover, any pellet production volume in excess of our supply agreement commitments could be sold on the spot market at very attractive price levels.”

Cliffs said project work is expected to start this year, with the majority of capital expenditures to occur in 2009.

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