Cliffs to restart United Taconite plant 2 months early, lifts guidance

TORONTO (miningweekly.com) – US-focused iron-ore producer Cliffs Natural Resources on Thursday announced that it would be restarting its United Taconite mining facility (UTAC), in Minnesota, two months earlier than previously thought, after it last week announced a ten-year iron-ore pellet supply agreement with ArcelorMittal USA.

Cliffs advised that the August restart of UTAC was made possible owing to added business recently contracted with Hamilton-based US Steel Canada to supply the majority of their iron-ore pellet requirements for the third and fourth quarters of 2016.

The new iron-ore pellet tonnage ordered by US Steel Canada brings Cliffs' sales volume expectations for the year to a higher level than expected in the company's previous forecast.

Cliffs revised upwards its 2016 sales volume guidance to 18-million long tons from its previous guidance of 17.5-million long tons. The company added that the 2016 production volume had been increased by 500 000 long tons to 16.5-million long tons.

According to chairperson, president and CEO Lourenco Goncalves, the vast majority of steel companies in North America were currently enjoying stronger order books, and their demand for high-quality iron-ore pellets from a reliable supplier was on the rise

“With that, Cliffs' business continues to gain very positive momentum, with the improvement of the existing business with our long-established clients and the addition of new ones, Goncalves stated.

US Steel Canada used to be a captive client of its former parent company US Steel Corporation, and Goncalves pointed out that the new business with US Steel Canada came at a higher tonnage than had previously been expected.

United Taconite comprises an iron-ore mine and a pellet processing plant, employing about 450 employees at full capacity. The operation was temporarily suspended since early August 2015.