CLEVELAND (Business Wire) -- Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today
announced that it plans to exercise its right of first refusal and
acquire U.S. Steel Canada's 44.6% interest and ArcelorMittal Dofasco's
28.6% interest in the Wabush Mines joint venture.




On Oct. 9, Consolidated Thompson Iron Mines Ltd. (TSX Venture: CLM)
announced an agreement with Wabush Mines' other two joint venture
partners, U.S. Steel Canada (44.6%) and ArcelorMittal Dofasco (28.6%),
to acquire their interests for approximately $88 million in cash. Under
the terms of the Wabush Mines partnership, Cliffs has a right of first
refusal to acquire each of U.S. Steel Canada's and ArcelorMittal
Dofasco's interest. By exercising its right of first refusal, Cliffs is
entitled to receive the same terms and conditions contained in the
agreement with Consolidated Thompson and thus increase its ownership
stake of Wabush Mines to 100%. With Wabush Mines' 5.5 million tons of
rated capacity, acquisition of the 73.2% will increase Cliffs' North
American Iron Ore rated equity production capacity by approximately 4.0
million tons.




Cliffs indicated that, since Wabush Mines began operation in 1965,
Cliffs has been the managing partner, and, as a result, the transaction
carries no integration risk. In addition, Cliffs is thoroughly familiar
with the unique attributes, opportunities and challenges of Wabush
Mines' assets, including the ore body and transportation system. The
Company has approximately 770 employees at Wabush Mines and the hourly
workforce is represented by The United Steelworkers.




Donald J. Gallagher, Cliffs Natural Resources' president, North American
business unit, said, "Cliffs is enthusiastic about the opportunity to
own 100% of Wabush Mines. Our commercial team has had great success
marketing the blast furnace pellets produced there to a diverse customer
set, including steelmakers in North America, Europe and Asia. Wabush
also has an excellent operating team that understands how to run mines
and a dedicated and skilled workforce."




At Dec. 31, 2008, Wabush Mines had 75 million tons of proven reserves
(iron ore pellet equivalent) and over the previous five years has
produced between 3.8 million and 5.2 million tons of iron ore pellets
annually. It produced 4.2 million tons of pellets in 2008. Wabush Mines
includes the Scully Iron Ore Mine near Wabush, Newfoundland, Labrador;
the pellet plant and port facilities at Point Noire, Quebec; and
integrated rail facilities. In addition, Wabush Mines owns an equity
position in an electricity generation utility in Newfoundland that
provides power for its mining operations.




Completion of the transaction is subject to a number of conditions,
including receipt of requisite regulatory approval and the execution of
definitive agreements. Closing is expected to occur in the fourth
quarter of 2009.