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MESABI TRUST DECLARES DISTRIBUTION

 NEW YORK, Aug. 4 /PRNewswire/ -- As previously announced in July 1993, the trustees of Mesabi Trust declared a distribution of $0.05 per unit of beneficial interest, payable on Aug. 20, 1993 to Mesabi Trust unitholders of record at the close of business on July 30, 1993. The total distribution on Aug. 20, 1993 will be $656,000.50.
 Unitholders should not assume an annual distribution amount based on annualization of any one quarterly distribution. For example, only a minimum royalty of about $130,000 is usually received for the first calendar quarter because shipments on the Great Lakes are prevented by icing. Shipments in the other three calendar quarters can greatly vary. The amount of royalties received by the Trust also depends on the price of the iron ore products that are shipped. Also, unitholders should bear in mind that the Trust royalty rate increases with cumulative tonnage shipped during each calendar year. For example, in any calendar year the royalty is 2-1/2 percent on the first million tons shipped, 3- 1/2 percent on the second million tons, 5 percent on the third million, 5-1/2 percent on the fourth million and 6 percent on all tonnage above 4 million.
 Cyprus North Shore Mining (Cyprus), lessee/operator of the Trust iron ore interests, shipped 972,028 tons of pellets and sinter made from Trust iron ore during the second calendar quarter leaving an inventory of about 683,000 tons of pellets awaiting shipment. The Trust was previously advised by Cyprus that it anticipated it would ship at least 2.6 million tons of iron ore product in calendar year 1993, compared to approximately 1.7 million tons of iron ore product shipped in calendar year 1992. The Trust has now been advised by Cyprus that Cyprus contemplates pellet production of about 300,000 tons per month and shipments of about 300,000-400,000 tons per month during the second half of 1993. Cyprus has further recently advised the Trust that if this schedule does not have to be changed because of currently unforeseen events, that it will ship a minimum of 2.6 million tons and possibly as much as 3.4 million tons of iron ore products during calendar 1993. Although actual royalties to the Trust will depend on the price for the iron ore products shipped, of which the Trust cannot be certain, the Trust currently estimates that a shipment of 2.6 million tons could generate total 1993 Trust royalty of about $2,500,000 (19 cents per unit) whereas shipment of 3.4 million tons could generate total 1993 Trust royalty of about $3,500,000 (27 cents per unit).
 Despite this good news, economic conditions in the domestic steel industry continue to be soft causing weak markets for iron ore, but there appears to be signs of an improving trend evidenced by higher steel pricing and demand.
 On July 7, 1993, the Trust sold for $120,831.58 net the shares of LTV Corporation received as part of the bankruptcy settlement of Trust claims against LTV Corporation. In addition to the LTV shares, the Trust will receive Contingent Value Rights issued by the Pension Benefits Guaranty Corporation. The value of the rights is contingent and variable but cannot exceed $24,141.
 -0- 8/4/93
 /CONTACT: Michael Clark of Bankers Trust Company, 212-250-6862, for Mesabi Trust/
 (BT)


CO: Bankers Trust New York Corporation ST: New York IN: FIN SU: DIV

WB-MG -- NY080 -- 9544 08/04/93 16:49 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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