December 11, 2017 04:40 PM
Cleveland-Cliffs is not letting the former Essar site go. In fact, on Monday, the company announced they have acquired certain real estate interests, including mineral and surface leases. The acreage acquired is approximately 553 acres, and the acreage being leased is around 3,215 acres.
Cliffs expects to leverage the interests to develop a financially sustainable plan for the site, according to their press statement.
CEO Lourenco Goncalves said, "We are enthused about the acquisition of this property, which came into play after Chippewa failed to follow through on its obligation to obtain financing and a bankruptcy exit for Mesabi Metallics by October 31st. Despite several botched attempts by others, it is now the time for Cleveland-Cliffs to sit at the table with the other responsible parties and develop a realistic solution for this site."
Pat Persico, Director of Corporate Communications, continued with, "We are always interested in acquiring iron ore reserves, as part of our long-term strategic plan." She also said there are no plans in the short-term to get out on the land and start mining.
As we've reported, Virginia businessman Tom Clarke is working on bringing the former Essar project to reality, and has control of the state's mineral leases. We have not heard back from him as of Monday afternoon, on the Cliffs' news.
The leases and interests announced by Cliffs on Monday are from Glacier Park Iron Ore Properties, a private group.
Updated: December 11, 2017 04:40 PM
Created: December 11, 2017 10:33 AM
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