Tag Archives: Cliffs Natural Resources

Company Issues 2011 Corporate Sustainability Report

CLEVELAND, Aug. 3, 2012 /Coal Geology/ – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced the release of its fourth sustainability report, titled “Explore. Operate. Grow.” The Sustainability Report is a comprehensive look at Cliffs’ business and describes the Company’s progress and outcomes in key areas of its sustainability strategy.

Cliffs developed this Sustainability Report in conformance with Global Reporting Initiative’s (GRI) comprehensive Sustainability Reporting Framework. Widely used around the world, GRI’s framework enables greater organizational transparency by establishing principles and indicators that global organizations can use to measure and report their economic, environmental, and social performance. The Company’s Sustainability Report received a third-party assurance and earned a B+ rating for the third consecutive year.

“Responsible and safe operation, respectful engagement and effective environmental stewardship are qualities we seek to both foster and recognize throughout Cliffs,” said Kelly Tompkins, Cliffs’ executive vice president, legal, government affairs and sustainability and chief legal officer. “Cultivating these qualities creates business value – both the tangible bottom line form of value and significant intangible value in the form of improved relationships, enhanced reputation, new partnerships and collaboration.”

Mr. Tompkins added that: “Sustainability allows us to develop new opportunities and mitigate risks, while gaining the support of stakeholders and agencies that allow us to operate and grow.”

Cliffs’ 2011 Sustainability Report features sustainability accomplishments, such as:

• Cliffs commissioned an independent benchmarking assessment of the Company’s environmental, social, economic and governance policies, performance and programs. Cliffs will use this analysis to further identify gaps, prioritize strategic opportunities and discover area for improvement. It will also help identify what information is of most interest to our various stakeholders.
• Cliffs introduced a new Capital Investment System (CIS) to the organization. It is a structured and integrated process designed to assess the economic and technical viability of a capital project throughout all phases of the investment system. The CIS process will integrate enhanced environmental, social, economic and governance considerations in Cliffs’ current set of minimum standards to ensure they are effectively addressed in a timely fashion.
• Cliffs voluntarily subjected components of its chromite project in Northern Ontario to an individual Environmental Assessment (EA), the most stringent type of provincial EA process. In addition, Cliffs worked with federal and provincial regulators to develop a coordinated EA review process that integrates requirements of the provincial individual EA and federal comprehensive EA. This will help ensure a consistent EA review process for stakeholders and multiple opportunities for public participation throughout the EA process.

To access Cliffs’ 2011 Sustainability Report in its entirety, please visit the Sustainability section of the Company’s website: http://www.cliffsnaturalresources.com.

About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.

The Company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the Company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes inWestern Australia. In addition, Cliffs has a major chromite project, in the feasibility stage of development, located in Ontario, Canada.

News releases and other information on the Company are available on the Internet at:http://www.cliffsnaturalresources.com

SOURCE Cliffs Natural Resources Inc.

• Full-Year Revenues Hit a Record $6.8 Billion, with Net Income Attributable to Cliffs’ Shareholders Increasing 59% to a Record $1.6 Billion, or $11.48 Per Diluted Share

• 2011 Cash from Operations Reaches Record $2.3 Billion

• Global Iron Ore Sales Volume Reaches 40 Million Tons

Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today reported fourth-quarter and full-year results for the period ended Dec. 31, 2011. Record full-year revenues of $6.8 billion increased $2.1 billion, or over 45%, from the previous year. Full-year operating income increased to $2.3 billion, up 85% from $1.3 billionin 2010. Net income attributed to Cliffs’ shareholders was $1.6 billion, or $11.48 per diluted share, up from$1 billion, or $7.49 per diluted share, in the prior year.

(Logo:  http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

Joseph Carrabba, Cliffs’ chairman, president and chief executive officer, said, “Cliffs delivered an exceptional performance in 2011, a year highlighted with the transformational acquisition of Consolidated Thompson. With a significant organic pipeline of growth in both iron ore and metallurgical coal, Cliffs is well positioned for continued momentum in 2012 and beyond.”

2011 Highlights

In addition to achieving record-breaking financial results, Cliffs accomplished several milestones, enhancing the Company’s growth profile and increasing financial flexibility. These included:

• Completing the C$4.9 billion (including net debt) acquisition of Consolidated Thompson, an emerging world-class iron ore producer in Eastern Canada, along with implementing the long-term capital structure to finance the deal;
• Increasing the quarterly cash dividend rate by 100%;
• The addition of Cliffs Natural Resources to the Fortune 500 listing;
• Being ranked No. 7 on the 2011 Barron’s 500 America’s Top Companies List;
• Advancing its safety program “Road to Zero” by reducing year-over-year injury rates across the organization by 15%; and
• Executing a global reorganization, by realigning management responsibilities for worldwide production and commercial sales.

Fourth-Quarter Consolidated Results

Consolidated fourth-quarter revenues were $1.7 billion, a 17% increase compared with $1.4 billion in the same quarter last year. The improvement was driven by higher sales volumes and increased exposure to seaborne market pricing. Consolidated sales margin increased slightly to $496 million, from $483 millionin the same period of 2010. During the fourth quarter of 2011, the Company incurred higher cost of goods sold driven by the increased sales volumes, along with higher stripping, labor and electricity costs in certain business segments.

In the fourth quarter, Cliffs’ consolidated operating income decreased to $370 million, from nearly $400 million in the prior year’s comparable quarter. This was driven by the relatively flat sales margin indicated above, and the previously disclosed $28 million pre-tax goodwill impairment charge related to the coal operations that Cliffs acquired from INR Energy in 2010.

Fourth-quarter 2011 net income attributable to Cliffs’ shareholders decreased 52% to $185 million, or$1.30 per diluted share, from $384 million, or $2.82 per diluted share, in the fourth quarter of 2010.

U.S. Iron Ore

Fourth-quarter 2011 U.S. Iron Ore pellet sales volume was 7.8 million tons, a 20% increase from the 6.5 million tons sold in the fourth quarter of 2010. The increase was primarily attributed to stronger demand for iron ore pellets driven by slightly higher North American steel industry capacity utilization of approximately 74%, compared to 69% in the fourth quarter of 2010.

U.S. Iron Ore fourth-quarter 2011 revenues per ton increased over 20% to $120.37, compared with $99.46during the fourth quarter of 2010. The increase was due to stronger year-over-year iron ore pricing driven by pricing mechanisms contained in certain supply contracts that provide increased exposure to more favorable seaborne market pricing. Last year, Cliffs sold more volume under supply agreements containing formula-based pricing mechanisms that have less exposure to seaborne iron ore pricing. The impact of this was offset by sales mix shifts and, to a lesser extent, retroactive provisional pricing adjustments recorded during the fourth quarter of 2011.

Cash cost per ton in U.S. Iron Ore was $66.34, up 12% from $59.27 in the year-ago quarter. The increase was driven primarily by higher supply and maintenance spending, electricity rates and stripping activity.

Eastern Canadian Iron Ore

Fourth-quarter 2011 Eastern Canadian Iron Ore sales volume was 1.9 million tons, a 70% increase from the 1.1 million tons sold in the fourth quarter of 2010. The increase was primarily driven by approximately 1.2 million tons of incremental iron ore concentrate sales volume from the Bloom Lake Mine. Offsetting the incremental sales from Bloom Lake were decreased year-over-year production and sales from Wabush Mine. This was attributed to a number of crusher, dryer and other equipment outages that resulted in lack of pellet availability.

Eastern Canadian Iron Ore fourth-quarter 2011 revenues per ton were $123.83, down 18% from $151.52 in the prior year’s fourth quarter. The revenue-per-ton decrease was driven by product mix and lower sales rate premiums for pellet products versus the prior year’s comparable quarter. Fourth-quarter 2011 sales mix was comprised of approximately 60% iron ore concentrate sales from Bloom Lake Mine versus last year’s fourth quarter, which was comprised exclusively of a premium pellet product.

Cash cost per ton in Eastern Canadian Iron Ore was $102.41, up 9% from $94.29 in the year-ago quarter. The increase was primarily driven by the production challenges at Wabush Mine noted above, which led to lower fixed-cost leverage and approximately $9 per ton of unplanned maintenance and repair spending. Offsetting this was lower cash costs from Bloom Lake Mine of $75 per ton during the fourth quarter of 2011, including an estimated $8 per ton unfavorable impact from Cliffs’ decreased production at Bloom Lake Mine to adjust for the mine’s fourth-quarter shipping schedule.

Asia Pacific Iron Ore

Fourth-quarter 2011 Asia Pacific Iron Ore sales volume decreased 31% to 1.8 million tons, compared with the prior-year quarter. The decrease was due to the combination of a planned shutdown at the port related to its expansion project, weather-related timing of two shipments and, to a lesser extent, industrial action within the logistics network in Western Australia.

Revenue per ton for the fourth quarter of 2011 decreased slightly to $130.18 from $135.42 in last year’s fourth quarter. This was driven by weaker year-over-year pricing for seaborne iron ore, as average spot pricing for 62% iron ore (C.F.R. China) was 11% lower during the fourth quarter of 2011 than the prior year’s comparable average.

Asia Pacific Iron Ore’s fourth-quarter cash cost per ton increased 34% to $69.22 from $51.75 in last year’s fourth quarter. The increase was primarily due to lower fixed-cost leverage, higher mining costs and unfavorable foreign exchange rates compared with the year-ago quarter.

North American Coal

For the fourth quarter of 2011, North American Coal sales volume was 988,000 tons, slightly higher than the 928,000 tons sold in the prior year’s comparable quarter. The increase was driven by significantly higher sales and production volumes from Pinnacle Mine. Slightly offsetting this was lower year-over-year sales volume from Oak Grove Mine due to severe weather that damaged the above-ground operations during 2011. Underground mining operations continued during the quarter, resulting in the Company stockpiling 1.9 million tons of raw coal (or 740,000 tons of clean coal equivalent) at quarter end.

North American Coal’s fourth-quarter 2011 revenue per ton increased 11% to $125.10, compared with$112.50 in the fourth quarter of 2010. The increase in revenue per ton was due to a higher proportion of sales of low-volatile metallurgical coal products versus 2010′s comparable quarter.

Cash cost per ton decreased 17% to $98.38 from $118.00 in the comparable quarter last year. This decrease was primarily attributed to the significantly lower cash costs per ton of $94 achieved at Pinnacle Mine during the quarter driven largely by higher production in the fourth quarter of 2011.

Sonoma Coal and Amapa

In the fourth quarter of 2011, Cliffs’ share of sales volume for its 45% economic interest in Sonoma Coal was 360,000 tons. Revenues and sales margin generated for Cliffs were $58.9 million and $16.3 million, respectively. Revenue per ton at Sonoma was $163.78, with cash costs of $80.80 per ton.

Cliffs has a 30% ownership interest in Amapa, an iron ore operation in Brazil. During the fourth quarter of 2011, Amapa produced approximately 1.3 million tons and earned equity income of $9.6 million for Cliffs’ share of the operation.

Capital Structure, Cash Flow and Liquidity

At Dec. 31, 2011, Cliffs had $522 million of cash and cash equivalents. During the quarter, Cliffs repurchased the one million shares remaining under the authorized share repurchase plan approved by Cliffs’ Board of Directors in August 2011. At year end, Cliffs had acquired a total of four million shares at an average weighted cost of $72 per share and a total investment of approximately $290 million.

At Dec. 31, 2011, the Company had $3.6 billion in long-term debt and no borrowings drawn on its $1.75 billion revolving credit facility. For full-year 2011, Cliffs reported depreciation, depletion and amortization of$427 million and generated a record-breaking $2.3 billion in cash from operations.

Outlook  

Cliffs is maintaining its 2012 business segment outlook, which was previously disclosed on Jan. 26, 2012. Assumptions in this outlook include an average 2012 spot price for 62% Fe seaborne iron ore of approximately $150 per ton (C.F.R. China).

The table below summarizes the 2012 outlook by business segment.

Outlook for Sonoma Coal and Amapa (Metric tons, F.O.B. the port)

Cliffs has a 45% economic interest in Sonoma Coal. For 2012, the Company is maintaining its equity sales and production volume expectations of approximately 1.6 million tons. The approximate product mix is expected to be two-thirds thermal coal and one-third metallurgical coal. Cash cost per ton is expected to be approximately $110. For 2012, depreciation, depletion and amortization is expected to be approximately $14 per ton.

Cliffs expects Amapa to contribute over $30 million in equity income in 2012.

SG&A Expenses & Other Expectations

Cliffs’ full-year 2012 SG&A expense expectation is approximately $325 million. The year-over-year increase in SG&A expense is primarily driven by an increase in growth-related corporate projects.

The Company expects to incur cash outflows of approximately $165 million to support future growth, comprised of approximately $90 million related to exploration and drilling programs and approximately $75 million related to its chromite project in Ontario, Canada.

For 2012, Cliffs anticipates a full-year effective tax rate of approximately 25%. In addition, Cliffs expects its full-year 2012 depreciation, depletion and amortization to be approximately $620 million.

2012 Capital Budget Update and Other Uses of Cash

For 2012, based on the Company’s outlook, Cliffs anticipates generating cash flow from operations of approximately $1.9 billion.

Cliffs is also maintaining its previously disclosed 2012 capital expenditures budget of approximately $1 billion, comprised of approximately $300 million in sustaining capital and $700 million in growth and productivity-improvement capital.

Cliffs will host a conference call to discuss its fourth-quarter 2011 results tomorrow, Feb. 16, 2012, at 10 a.m. ET. The call will be broadcast live and archived on Cliffs’ website:  www.cliffsnaturalresources.com.

About Cliffs Natural Resources Inc.

Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.

The Company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the Company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes inWestern Australia. The Company also has a 45% economic interest in a coking and thermal coal mine inQueensland, Australia. In addition, Cliffs has a major chromite project, in the pre-feasibility stage of development, located in Ontario, Canada.

News releases and other information on the Company are available on the Internet at:http://www.cliffsnaturalresources.com

Forward-looking Statements

This release contains “forward-looking” statements within the safe harbor protections of the federal securities laws. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties relating to Cliffs’ operations and business environment that are difficult to predict and may be beyond Cliffs’ control. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forward-looking statements for a variety of reasons including: the uncertainty or weakness in global economic and/or market conditions; trends affecting our financial condition, results of operations or future prospects, particularly any slowing of the economic growth rate in China for an extended period; Cliffs’ ability to achieve the synergies and the strategic and other objectives related to the acquisition of Consolidated Thompson; the outcome of any contractual disputes with our customers or significant suppliers of energy, materials or services; the amount and timing of any insurance recovery proceeds with respect to Oak Grove Mine; the impact of price-adjustment factors on our sales contracts; availability of capital equipment and component parts; the failure of plant, equipment or processes to operate as anticipated; unanticipated downturns in business relationships with customers or their purchases from us; customers’ ability to meet their obligations to us on a timely basis or at all; events or circumstances that could impair or adversely impact the viability of a mine and the carrying value of associated assets; unexpected claims, charges, litigation or dispute resolutions; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; our ability to obtain any permits, approvals, modifications or other authorization of, or from, any governmental or regulatory entity; new laws and governmental regulations; the ability to achieve planned production rates or levels; our actual economic ore reserves; reductions in current resource estimates; the ability to maintain adequate liquidity and successfully implement our financing plans; other problems or uncertainties with productivity, third-party contractors, labor disputes, weather conditions, natural disasters, tons mined, changes in cost factors, the supply or price of energy, transportation, mine-closure obligations and employee benefit costs and other risks of the mining industry; and other factors and risks that are set forth in the Company’s most recently filed reports with the Securities and Exchange Commission. The information contained herein speaks as of the date of this release and may be superseded by subsequent events. Except as may be required by applicable securities laws, we do not undertake any obligation to revise or update any forward-looking statements contained in this release.

SOURCE Cliffs Natural Resources Inc.

Company Poised to Produce an Anticipated $1.9 Billion in Cash Flow from Operations in 2012

CLEVELAND, Jan. 26, 2012 /Coal Geology-PRNewswire/ – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today provided an update on its 2011 expected results by business segment, along with its business segment outlook for 2012. Cliffs will report its complete fourth-quarter and full-year results on Feb. 15, 2012, and hold a conference call with the investment community at 10 a.m. on Feb. 16, 2012 (additional conference call information below).

U.S. Iron Ore
Cliffs expects to report full-year 2011 revenue per ton in its U.S. Iron Ore business segment at the low end of its previous 2011 revenue per ton outlook of $135 – $140, with a rate of approximately $120 per ton in the fourth quarter. The fourth quarter rate was driven by sales mix and retroactive pricing adjustments recorded for specific contracts during the quarter. The Company expects to report full-year sales volume and cash cost per ton in line with its previous outlook of 24 million tons and $63 per ton, respectively.

Eastern Canadian Iron Ore
Cliffs expects to report full-year 2011 sales volume of 7.4 million tons in its Eastern Canadian Iron Ore segment, down from its previous outlook of 8 million tons. The lower-than-anticipated sales volume was driven by lower pellet sales volume resulting from operational challenges at Wabush Mine. During the fourth quarter, Wabush experienced a number of crusher, dryer and other equipment outages, resulting in lack of pellet availability.

In addition, Cliffs expects to report 2011 revenue per ton in Eastern Canadian Iron Ore slightly below its previous outlook of $160 – $165. Full-year cash cost per ton in the segment are expected to be at the high end of Cliffs’ previous outlook of $90 – $95. Higher cash costs per ton were primarily driven by the challenges at Wabush, which included a $4 per ton impact from lower fixed cost leverage and unplanned fourth-quarter repair spending.

Asia Pacific Iron Ore
Cliffs expects to report full-year 2011 sales volumes of 8.6 million tons in its Asia Pacific Iron Ore segment, down from its previous outlook of 8.8 million tons. The lower-than-anticipated sales volumes were due to timing of two shipments, one from Koolyanobbing and one from Cockatoo Island.

Revenue per ton in Asia Pacific Iron Ore is expected to be in line with Cliffs’ previous outlook of $155 – $160. Primarily as a result of higher mining costs, Cliffs expects to report cash cost per ton in Asia Pacific Iron Ore of approximately $66, slightly higher than its previous outlook of $60 – $65 per ton.

North American Coal
Cliffs’ Pinnacle Mine generated strong results in the fourth quarter, with production of over 600,000 tons of low-volatile metallurgical coal expected to be reported. In addition, Oak Grove Mine achieved year-end inventory of approximately 1.9 million tons of raw coal (or 740,000 tons of clean coal equivalent) in the fourth quarter. As a result, Cliffs anticipates reporting full-year 2011 production in its North American Coal segment of over 5 million tons and sales volume of approximately 4.2 million tons, slightly higher than its previous outlook. Full-year 2011 revenue per ton in North American Coal is expected to be at the high end of Cliffs’ previous outlook of $115 – $120, with cash costs per ton expected to be approximately $112 per ton.

Other 2011 Expectations
Cliffs anticipates reporting 2011 cash flow from operations of approximately $2.3 billion and capital spending of $880 million for the year. The Company noted it anticipates recording a $28 million pre-tax, goodwill impairment charge in the fourth quarter related to its coal operations that were acquired from INR Energy in 2010. Cliffs also noted that its fourth-quarter effective income tax rate is expected to be approximately 36%. For the full year, the effective tax rate is expected to be approximately 19%, slightly above Cliffs’ previous outlook of 18%.

Cliffs’ 2012 Outlook 
In 2012, Cliffs anticipates selling approximately half of its over 45 million tons of expected global iron ore sales volume to seaborne customers in Asia, with remaining volumes sold to North American customers. The Company expects modest 2012 growth in the U.S. economy, supporting healthy demand for Cliffs’ U.S. Iron Ore business. Conversely, the Company expects meaningful growth in emerging economies, specifically China, where crude steel production and iron ore imports are anticipated to reach record annual levels.

Given these expectations, Cliffs anticipates an average 2012 spot price for 62% Fe seaborne iron ore of approximately $150 per ton (C.F.R. China), a price serving as the basis for the iron ore business outlook below.

U.S. Iron Ore 2012 Outlook (Long tons)
For 2012, the Company is maintaining its expected sales volume in U.S. Iron Ore of approximately 23 million tons.

U.S. Iron Ore revenue per ton is expected to be approximately $115 – $125, based on the following assumptions:

• 2012 U.S. blast furnace utilization of approximately 70% – 75%
• 2012 average hot rolled steel pricing of $700 – $750 per ton

In addition, the revenue-per-ton expectation also considers various contract provisions, lag-year adjustments and pricing caps and floors contained in certain supply agreements. Actual realized revenue per ton for the full year will depend on iron ore price changes, customer mix, production input costs and/or steel prices (all factors contained in certain of Cliffs’ supply agreements).

Cliffs’ full-year 2012 U.S. Iron Ore cash cost per ton expectation is approximately $60 – $65. Depreciation, depletion and amortization for full-year 2012 is expected to be approximately $5 per ton. Cliffs also expects its U.S. Iron Ore 2012 production volume of approximately 22 million tons.

Eastern Canadian Iron Ore 2012 Outlook (Metric Tons, F.O.B. Eastern Canada)
For 2012, the Company is maintaining its previously disclosed Eastern Canadian Iron Ore expected sales and production volume of approximately 12 million tons.

Cliffs’ full-year 2012 Eastern Canadian Iron Ore revenue-per-ton outlook is approximately $135 – $145, assuming a product mix of approximately two-thirds iron ore concentrate and one-third iron ore pellets. Full-year 2012 cash costs per ton in Eastern Canadian Iron Ore are expected to be approximately $70 – $75. Depreciation, depletion and amortization is expected to be approximately $19 per ton for full-year 2012.

Asia Pacific Iron Ore 2012 Outlook (Metric tons, F.O.B. the port)
Cliffs is maintaining its full-year 2012 Asia Pacific Iron Ore expected sales and production volumes of approximately 11 million tons. Cliffs’ full-year 2012 Asia Pacific Iron Ore revenue-per-ton outlook is approximately $135 – $145, assuming a product mix of approximately half lump and half fines iron ore.

Full-year 2012 Asia Pacific Iron Ore cash cost per ton is expected to be approximately $65 – $70, which assumes an U.S./Australian dollar exchange rate of $1.03 for 2012. Cliffs anticipates depreciation, depletion and amortization to be approximately $13 per ton for full-year 2012.

North American Coal 2012 Outlook (Short tons, F.O.B. the mine)
Cliffs is maintaining its 2012 North American Coal sales and production volume expectations of approximately 7.2 million tons and 6.6 million tons, respectfully. Sales volume mix is anticipated to be approximately 4.3 million tons of low-volatile metallurgical coal and 1.8 million tons of high-volatile metallurgical coal, with thermal coal making up the remainder of the expected sales volume.

Cliffs’ North American Coal 2012 revenue-per-ton expectation is approximately $140 – $150. Cash cost per ton is anticipated to be approximately $105 – $110, including the impact of sales from higher cost inventory stockpiles at Oak Grove Mine related to the operation’s recovery from severe weather in 2011. Full-year 2012 depreciation, depletion and amortization is expected to be approximately $16 per ton.

The following table provides a summary of Cliffs’ 2012 guidance for its four business segments:

2012 Cash Flow from Operations and Capital Budget

For 2012, based on the above outlook, Cliffs would generate an anticipated $1.9 billion in cash flow from operations.

Cliffs is maintaining the 2012 capital expenditures budget previously disclosed on Jan. 19, 2012. This $1 billion budget was comprised of approximately $300 million in sustaining capital and $700 million in growth and productivity-improvement capital.

Conference Call Information
Cliffs intends to announce unaudited 2011 fourth-quarter financial results after the U.S.-market closeWednesday, Feb. 15, 2012, and invites interested parties to listen to a live broadcast of a conference call with securities analysts and institutional investors to discuss the results at 10 a.m. ET on Thursday, Feb. 16, 2012. The call can be accessed at www.cliffsnaturalresources.com.

If you are unable to participate during the live webcast, the call will be archived athttp://www.cliffsnaturalresources.com.

About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.

The Company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the Company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes inWestern Australia. The Company also has a 45% economic interest in a coking and thermal coal mine inQueensland, Australia. In addition, Cliffs has a major chromite project, in the pre-feasibility stage of development, located in Ontario, Canada.

News releases and other information on the Company are available on the Internet at:http://www.cliffsnaturalresources.com

‘Safe Harbor‘ Statement under the Private Securities Litigation Reform Act of 1995
This release contains “forward-looking” statements within the safe harbor protections of the federal securities laws. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties relating to Cliffs’ operations and business environment that are difficult to predict and may be beyond Cliffs’ control. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forward-looking statements for a variety of reasons including: the uncertainty or weakness in global economic and/or market conditions; trends affecting our financial condition, results of operations or future prospects, particularly any slowing of the economic growth rate in China for an extended period of time; Cliffs’ ability to achieve the synergies and the strategic and other objectives related to the acquisition of Consolidated Thompson; the outcome of any contractual disputes with our customers or significant suppliers of energy, materials or services; our ability to successfully complete the repair and refurbishment work at the Oak Grove Mine in the expected time frame; the amount and timing of any insurance recovery proceeds with respect to Oak Grove Mine; the impact of price-adjustment factors on our sales contracts; availability of capital equipment and component parts; the failure of plant, equipment or processes to operate as anticipated; unanticipated downturns in business relationships with customers or their purchases from us; events or circumstances that could impair or adversely impact the viability of a mine and the carrying value of associated assets; unexpected claims, charges, litigation or dispute resolutions; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; our ability to obtain any permits, approvals, modifications or other authorization of, or from, any governmental or regulatory entity; new laws and governmental regulations; the ability to achieve planned production rates or levels; our actual economic ore reserves; reductions in current resource estimates; the ability to maintain adequate liquidity and successfully implement our financing plans; and problems or uncertainties with productivity, third-party contractors, labor disputes, weather conditions, natural disasters, tons mined, changes in cost factors, the supply or price of energy, transportation, mine-closure obligations and employee benefit costs and other risks of the mining industry; and other factors and risks that are set forth in the Company’s most recently filed reports with the Securities and Exchange Commission. The information contained herein speaks as of the date of this release and may be superseded by subsequent events. Except as may be required by applicable securities laws, we do not undertake any obligation to revise or update any forward-looking statements contained in this release.

SOURCE Cliffs Natural Resources Inc.

CLEVELAND, Jan. 11, 2012 /Coal Geology-PRNewswire/ – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced that its Board of Directors declared a quarterly cash dividend on the Company’s common shares of $0.28 per share. The cash dividend will be payable on March 1, 2012, to shareholders of record as of the close of business on Feb. 15, 2012.

About Cliffs Natural Resources Inc.

Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.

The Company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the Company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes inWestern Australia. The Company also has a 45% economic interest in a coking and thermal coal mine inQueensland, Australia. In addition, Cliffs has a major chromite project, in the pre-feasibility stage of development, located in Ontario, Canada.

News releases and other information on the Company are available on the Internet at:http://www.cliffsnaturalresources.com

Follow Cliffs on Twitter at: http://twitter.com/CliffsIR

SOURCE Cliffs Natural Resources Inc.