Cleveland-Cliffs signs iron ore supply contract

摘要

Cleveland-Cliffs has entered into a long-term agreement to supply iron ore pellets to International Steel Group (ISG). At the same time, ISG announced that it completed its acquisition of the principal steelmaking and finishing assets of LTV Steel. Under the supply agreement, Cleveland-Cliffs will be the sole supplier of pellets purchased by ISG for 15 years. Cleveland-Cliffs also said that it has invested 13 million dollars in ISG common stock, representing about 7 percent of ISG's equity. Pellet sales to ISG during 2002 are estimated to be between 1.36 Mt and 1.8 Mt (1.5 million st and 2 million st), depending on ISG's actual production scale-up. Sales for the remainder of the contract term will depend on ISG's pellet requirements.