Cliffs announces agreements with Minnesota Power

CLEVELAND, Ohio — Officials at Cliffs Natural Resources say a new power deal will help preserve future competitiveness.

The company announced Tuesday that — through its subsidiaries — it has entered into multiple agreements with Minnesota Power. Cliffs will receive $31 million in cash as part of the long-term purchased power arrangement for its Northshore operation in Minnesota through 2031. Officials say the agreements, which are pending potential regulatory approval of the sale of utility assets, include certain non-core operations, transmission assets at United Taconite, certain land options at United Taconite and Northsore Mining Company, and transportation rights along the Cliffs Erie rail assets.

Company officials said the supply agreement will not involve any immediate staff reductions at its Silver Bay Power plant. Cliffs also extended its regulated power arrangements with Minnesota Power for ten years at its United Taconite and Babbitt facilities.