From Cliffs Natural Resources:
Cliffs Natural Resources Inc. announced Tuesday that it has entered into a new Agreement with AK Steel to supply iron ore pellets from 2014 through 2023. The new Agreement includes minimum and maximum volume iron ore pellet purchases from Cliffs, as outlined in the Agreement. Cliffs will continue to supply AK Steel with iron ore pellets for the remainder of 2013 and 2014 under the previous Agreement between the two companies.
Also, the new Agreement provides a pricing mechanism for the volumes sold in the contracted years. The annual price will be determined by a formula-based pricing mechanism, where the annual price is adjusted by multiple factors including seaborne pricing for iron ore and certain producer price indices.
Donald J. Gallagher, Cliffs’ president — global commercial, said, “We are pleased to announce this long-term supply agreement and the extension of the previous contract with our valued customer, AK Steel. Our U.S. Iron Ore operations will continue to be a reliable supplier of high-quality iron ore pellets to AK Steel for many years to come.”
Cliff’s Natural Resources also announced Tuesday the release of its 2012 sustainability report, entitled “Embracing our Past, Securing our Future.” The sustainability report is a comprehensive look at Cliffs’ global operations and outlines the Company’s progress in key areas of its sustainability strategy.
“This year has been marked by continual change and volatility in the commodities market, which has presented our Company with a number of opportunities and challenges. However, our expectations of personal accountability and business ethics are unwavering,” said David Cartella, vice-president – global environmental affairs, sustainability and counsel. “Going forward, we will continue to build upon a strong foundation of sustainability with the development of a three-year, enterprise-wide strategy. Aligned with business priorities and integrated with operational and functional groups, this strategy aims to maximize our shared value by reinforcing our social license to operate.”
Highlighted sustainability accomplishments for 2012 include:
- Cliffs was ranked top performer in the iron and steel subsector group – and 34th overall – on the Maplecroft Climate Innovation Index, a Bloomberg listing of top-performing U.S.-based companies in terms of climate-related innovation and carbon management programs.
- Developed and guided the implementation of spill reduction initiatives, which achieved a total spill volume reduction of more than 75% from 2011 levels.
- More than 18 percent of Cliffs’ total electricity purchases in 2012 came from renewable energy generation.
- Partnered with the city of Ishpeming in Michigan to finance the Partridge Creek Diversion Project, which aims to reduce or eliminate mercury levels in nearby Deer Lake.
- Initiated the Bloom Lake Cliffs Forum, near the Company’s Eastern Canada iron ore operation, a civic quarterly meeting to proactively address the community’s interests and concerns.
- Implemented a new salaried employee talent management system that tracks individual goals, accomplishments and career aspirations to assist in internal recruitment and development of succession plans.
Cliffs is introducing an all-new, online-only format, accessible in the “Sustainability” section of the Company’s corporate website, www.cliffsnr.com. In addition to reading or downloading the report in its enterity, users can customize a PDF with content most relevant to them through a “Build My Report” functionality.
Cliffs developed the report to conform with the widely-used Global Reporting Initiative’s (GRI) comprehensive sustainability report framework. The GRI framework encourages greater transparency from organizations through standardized principles and indicators for tracking and reporting on economic, environmental and social performance. This year’s report achieved an application level B in accordance with the GRI guidelines.