Mesabi Trust Press Release
March 14 2016 - 4:13PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) are reporting that
Cliffs Natural Resources Inc. (“Cliffs”), the parent company of
Northshore Mining Company (“Northshore”), announced today that it
will be restarting iron ore pellet production at its Northshore
mining operation in Minnesota by May 15, 2016. Iron ore pellet
production at Northshore has been temporarily idled since December
1, 2015. Cliffs stated that it is taking such action based on its
domestic customers’ demand for iron ore pellets and consistent with
its previously announced production plans for the year.
In its news release today, the President and Chief Executive
Officer of Cliffs was quoted as saying: “In 2015, Cliffs developed
at Northshore Mining a new product, the DR-grade pellets used as
feedstock to DRI production. As we restart operations at Northshore
in May, we will also resume the production of DR-grade pellets
destined to EAF clients.” Cliffs previously announced in November
2015 that it would maintain minimal staffing during the temporary
idle for basic maintenance duties and for on-going work to support
the DR-grade pellet trials.
With respect to the remainder of calendar year 2016, Northshore
has not advised Mesabi Trust of its expected 2016 shipments of iron
ore products or what percentage of 2016 shipments will be from
Mesabi Trust iron ore.
This press release contains certain forward-looking statements
with respect to iron ore pellet production, shipments by Northshore
in 2016, and other matters, which statements are intended to be
made under the safe harbor protections of the Private Securities
Litigation Reform Act of 1995, as amended. Actual production,
prices, price adjustments, and shipments of iron ore pellets, as
well as actual royalty payments (including bonus royalties) could
differ materially from current expectations due to inherent risks
such as general and industry economic trends, uncertainties arising
from war, terrorist events and other global events, higher or lower
customer demand for steel and iron ore, decisions by mine operators
regarding curtailments or idling production lines or entire plants,
plant closures, environmental compliance uncertainties,
difficulties related to obtaining and renewing necessary operating
permits, higher imports of steel and iron ore substitutes,
consolidation and restructuring in the domestic steel market,
indexing features in Cliffs Pellet Agreements resulting in
adjustments to royalties payable to Mesabi Trust and other factors.
Further, substantial portions of royalties earned by Mesabi Trust
are based on estimated prices that are subject to interim and final
adjustments, which can be positive or negative, and are dependent
in part on multiple price and inflation index factors under
agreements to which Mesabi Trust is not a party and that are not
known until after the end of a contract year. Although the Mesabi
Trustees believe that any such forward-looking statements are based
on reasonable assumptions, such statements speak only as of the
date of this release, and are subject to risks and uncertainties,
which could cause actual results to differ materially. Additional
information concerning these and other risks and uncertainties is
contained in the Trust’s filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K. Except as may
be required by applicable securities laws, Mesabi Trust undertakes
no obligation to publicly update or revise any of the
forward-looking statements that may be in this press release.
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