Cleveland-Cliffs Announces Idling of Iron Ore Mine in Minnesota.Business Editors CLEVELAND--(BUSINESS WIRE)--Jan. 18, 2001 Cleveland-Cliffs Inc (NYSE NYSE See: New York Stock Exchange :CLF CLF The ISO 4217 currency code for Chile Unidades de Fomento. ) announced today that the owners of Hibbing Taconite taconite, low-grade iron ore, a flintlike rock usually containing less than 30% iron. Resistant to drilling and to the extraction of its contained metal, the rock was long considered worthless. Experiments begun in 1912 by the American scientist Edward W. Company, Hibbing, Minnesota Hibbing is a city in St. Louis County, Minnesota, USA. The population was 17,071 at the 2000 census. The city was built on the rich iron ore of the Mesabi Iron Range. At the edge of town is the largest open-pit iron mine in the world.[1] U.S. , will temporarily idle the iron ore mining operation for an anticipated total of 10 weeks during 2001 to align iron ore pellet production with the requirements of the mine owners. Cliffs, through subsidiaries, is a 15 percent owner and manager of the mine. Mine operations will cease for a period of 6 weeks beginning January 28. A second vacation shutdown will be scheduled for this summer. Total downtime for the two shutdowns is not expected to exceed 10 weeks. The shutdown is expected to reduce production this year from Hibbing's rated capacity of 8 million tons to approximately 6.7 million. A total of approximately 650 hourly employees will be laid off during the shutdown period. A small number of employees will be required for winterization Winterization refers to the process of preparing something for an upcoming winter. The term is most commonly used in respect to aquatic play features, fountains, and the like, which must be drained and sealed up so that water inside does not freeze, causing breakage of the and maintenance. Hourly employees will be eligible for unemployment compensation, as well as supplemental unemployment benefits. Noting that business conditions in the domestic steel industry have deteriorated significantly over the last several months, John S. Brinzo, Cliffs' chairman and chief executive officer, said, "Adverse market changes have made this action necessary. It is going to take the combined efforts of the companies, employees, the union, the government and local communities to get us through this difficult period. We must, somehow, overcome all the barriers to progress. Most important of these barriers are record levels of unfairly traded steel imports, a slowing economy in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada, low steel prices and a strong U.S. dollar." In addition to the Hibbing production cut and a 700,000 ton reduction at Northshore Mining in Minnesota announced earlier, Cleveland-Cliffs is continuing to evaluate production levels at its two managed mines in Michigan. Cleveland-Cliffs is the largest supplier of iron ore products to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. steel industry and is developing a significant ferrous metallics business. Subsidiaries of the Company manage and hold equity interests in iron ore mines in Michigan, Minnesota and Eastern Canada. Cliffs has a major iron ore reserve position in the United States and is a substantial iron ore merchant. References in this news release to "Cliffs" and the "Company" include subsidiaries and affiliates as appropriate to context. This news release contains predictive statements with respect to iron ore production that are intended to be made as "forward-looking" within the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protections of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties. Actual results may differ materially from such statements, due to further changes in steel industry business conditions and demand for iron ore pellets by the Company's customers and other mine owners. The information contained in this document speaks as of the date of this news release and may be superseded by subsequent events. |
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