Cleveland-Cliffs Inc (NYSE:CLF) reported that its 100% owned subsidiary unit, Cleveland-Cliffs Minnesota Land Development LLC closed an acquisition deal of specific real estate interests based in Itasca County, Minnesota from “GPIOP”. The interests comprise a combination of whole fee and undivided interests as well as surface and mineral and leases, all remaining within the Biwabik Iron Formation. As per the update, the acreage acquired is around 553 acres while the acreage being leased is nearly 3,215 acres.
Cleveland-Cliffs projects to be able to use the bought real estate interests to advance a financially sustainable program for the location, which may be stated as other iron ore resources drain. The bought properties comprise parcels that were previously leased to Mesabi Metallics Company LLC, formerly named as Essar Steel Minnesota by GPIOP. Mesabi Metallics’ lease privileges terminated on October 31, 2017 when it was unsuccessful to exit bankruptcy pertaining to Chippewa’s inability to secure funding as well as other consents on time for its strategy to get Mesabi Metallics out of bankruptcy then.
Lourenco Goncalves, the CEO, President and Chairman, reported that they are delighted about the acquisition of this deal, which materialized after Chippewa failed to meet its obligation to get financing and an exit from bankruptcy for Mesabi Metallics by October 31, 2017.
Despite numerous botched initiatives by others, it marks the time for Cleveland-Cliffs to discuss with other responsible entities and advance a realistic solution for this location. The company has been in the region of Minnesota for 115 years, and they currently engage around 1,750 people in three distinct pelletizing and mining businesses throughout the state. As the fresh owner of this real estate, they understand their responsibilities and will not fail the people of Minnesota. Cleveland-Cliffs, one of the leading independent iron ore mining firms in the United States, was established in 1847.