Cliffs Chromite Overview Nov. 2011

Cliffs Chromite Project Project Description Overview November 3, 2011

Cautionary Note Regarding Forward-Looking Information This document contains predictive statements that are intended to be made as “forward-looking” within the safe harbour protections of applicable securities laws. Although Cliffs Natural Resources Inc. (Company) believes that these forward-looking statements are based on reasonable assumptions, such statements are subject to risk and uncertainties. Specifically, this document contains forward-looking statements regarding the Company’s proposed development of its Black Thor deposit and related mining, ore processing, transportation and ferrochrome production infrastructure, including, but not limited to, the preliminary schedule, the proposed activities and the Company’s strategies and objectives, the receipt of approvals and permits in connection with development activities, the mining rate and mine life of the proposed project, and timing and estimates regarding future production. Any statements that are not statements of historical fact (including statements containing the words “believes,” “intends,” “will,” “plans,” “anticipates,” “expects,” “estimates” or similar expressions) should be considered to be forward-looking statements. Such forward-looking statements are based on current expectations and assumptions, including, but not limited to, the Project being consummated on acceptable terms without undue delay; and that all necessary or desirable regulatory or other third-party approvals and consents are obtained on terms satisfactory to the Company. Such forward-looking statements are also subject to risks and uncertainties, which could cause actual results to differ materially from such statements as a result of various factors, some of which are unknown, including, but not limited to, the results of pre-feasibility and any feasibility studies; the time required to consummate the proposed Project; ability to achieve the strategic and other objectives of the proposed project; changes in Project parameters; uncertainties involved in interpreting geological data; chromite ore and ferrochrome price volatility; the possibility of Project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry; problems with productivity; weather conditions; fluctuations in ore grade and tonnes to be mined; changes in cost factors, including energy costs, transportation, mine closure obligations and employee benefit costs; failure of plant, equipment or processes to operate as anticipated; impacts of regulatory compliance and changes in legislation; failure to receive required environmental permits and other regulatory or third-party approvals and consents; changes in market conditions; the price and availability of adequate energy; the outcome of contractual negotiations with significant energy, material or service providers; the outcome of negotiations with aboriginal communities; rejection of major contracts and/or venture agreements by customers and/or participants under provisions of the U.S. Bankruptcy Code or similar statutes in other countries; trends affecting the Company’s financial condition, results of operations or future prospects; risks relating to fluctuating interest rate and currency exchange rates; ability to maintain adequate liquidity and the Company’s ability to access capital markets; as well as those risk factors discussed in the annual information forms, annual reports and other public disclosure of the Company. Reference is made to the detailed explanation of the many factors and risks that may cause such predictive statements to turn out differently, set forth in the Company’s Annual Report and Reports on Form 10-K, Form 10-Q and previous documents filed with the United States Securities and Exchange Commission, which are publicly available on the Company’s website. The forward-looking statements contained in this document are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The forward-looking statements contained in this document are made as of the date of this document and, accordingly, are subject to change after such date. Except as may be required by applicable securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

Message from the President of Cliffs Ferroalloys “ Now that we have a solid understanding of what will make a viable Project, we’re excited to move to a more detailed phase of discussions with the communities and stakeholders by sharing our plans and receiving your feedback.” Over the past year and a half we have been developing plans for mining chromite and manufacturing ferrochrome Our presentation today presents these plans for discussion and comment

Project will Consist of Four Interrelated Components A mine anticipated to move up to 30 million metric tons of material per annum and deliver up to 4.4 million metric tons of crude ore per annum to the concentrator A 4.4 million metric ton crude ore per annum processing facility expected to produce up to 2.3 million metric tons of chromite concentrate per annum An integrated transportation system to link all project components A ferrochrome production facility to manufacture the ferrochrome product Note: Assumes, among other things, favorable results of pre-feasibility and any feasibility studies, cooperation of project stakeholders, timely EA review and permitting processes, receipt of applicable governmental approvals and favorable mining rates.

What is the Base Case? “ Base Case” is one set of viable components Fully described in draft Project Description report submitted to government in May 2011 Not necessarily the final choice; further studies, testing, evaluations as well as discussions with project stakeholders are needed The environmental assessment will consider alternatives using the Base Case as a reference Note: The tonnes referenced in the graphic on this slide are based on certain assumptions, including, among other things, anticipated mining rates.

Base Case Locations “ ...we’re excited to move to a more detailed phase of discussions with the communities and stakeholders by sharing our plans and receiving your feedback.”

Base Case Details An open pit chromite mine and waste rock and soil stockpiles at the Mine Site; will consider transition to underground mining for ore at greater depths An ore processing facility, load-out facility and tailings management area also at the Mine Site An integrated transportation system, including an airstrip, transload facility, and permanent all-season road A ferrochrome production facility and slag stockpile near Capreol in rural area of City of Greater Sudbury

McFaulds Lake Mine Site Location of the mine and ore processing facility along with waste rock stockpiles and tailings management area Also includes: On-site road network Buildings and warehouses Electric generating power plant Fuel, chemical and explosive storage Accommodations complex Water supply and treatment Waste management system Airstrip Overview of Mine Site

The Mine Process will begin with mining the chromite ore in the Black Thor deposit Expected that the first 10-15 years will be from two open pits once mining begins Will consider transition to underground mining for ore at greater depths 6,000-12,000 tonnes per day of crude ore is expected once mining is in full production Crushing of crude ore to reduce its size Ore with a grade of 40% Cr 2 O 3 or greater is suitable for refining or direct sale

Ore Processing Facility Crude ore will be processed to produce a concentrate Involves crushing, mechanical processes and gravity separation Resulting in a concentrate suitable for refining Approximately 3,600 to 7,200 tonnes per day of chromite concentrate is expected once mining is in full production Concentrate will be loaded on road-haul trucks at “load-out facility” for transport to the CN transcontinental rail line near or within Greenstone

Integrated Transportation System Must accommodate movement of people and materials to and from the Mine Site Method is also needed to transport large quantity of concentrate Transportation system includes: Airstrip Permanent all-season road A load-out facility at the Mine Site where haul trucks would be loaded with concentrate A transload facility near or within Greenstone where concentrate would be transferred to rail cars

Permanent All-Season Road Base Case is road between Greenstone and Mine Site Transportation of concentrate from Mine Site to CN rail line Several options considered Approximately 260 km northward extension of existing Anaconda Road Consists of gravel surfaced roadway within a 100-metre wide right-of-way; staying on high ground to the extent possible Crosses small and large watercourses, including the Ogoki, Albany and Attawapiskat Rivers 70-tonne haul trucks, 50-100 truckloads daily Road haul truck

Ferrochrome Production Facility Final step will be to refine concentrate in enclosed electric arc furnaces Ferrochrome metal will be sold for use in stainless steel manufacturing in North America and worldwide Current Base Case location is industrial site near Capreol in a rural area of Sudbury, but other locations are being considered 1,500 tonnes per day of ferrochrome is expected once mining is in full production Overview of site

First Nations First Nations people have rights that may be affected by the Project The Mine Site and road are in Ontario’s Far North in traditional First Nations’ territory, including Marten Falls and Webequie First Nations The Base Case site for the Ferrochrome Production Facility near Capreol is near the Wahnapitae First Nation Cliffs will continue to proactively engage with and listen to First Nations communities by: Committing to on-going dialogue and keeping First Nations engaged Developing a progression of protocols and agreements so that First Nations benefit appropriately from the Project Creating opportunities to enhance social well being and economic prospects for First Nations communities Supporting Land Use Planning initiatives undertaken by First Nations communities and coordinating environmental assessment (EA) activities with Far North Act requirements

First Nations’ Knowledge Cliffs also recognizes First Nations’ unique connection to the land, and hopes to gain the trust and respect of community members by encouraging them to take a meaningful role throughout the environmental assessment First Nations’ traditional knowledge of the land will be useful when developing key Project components The data and learning we generate will be available to First Nations in their land use planning

Economic Benefits Project is expected to have substantial benefits in the Far North, northern Ontario and the province as a whole Anticipated direct benefits include employment and Project spending during construction and operations period Estimated employment (construction and operations are similar): Mine Site ~300-500 Transportation System ~200-300 Ferrochrome Production Facility ~350-450

The Project’s Environmental Assessment Investigations of environmental baseline conditions underway Cliffs will conduct a thorough environmental assessment (EA) Submitting the draft Project Description is first step in EA process Permits needed for construction and operation may be issued by governmental agencies only after the EA is successfully completed Note: The graphic included on this slide assumes, among other things, favorable results of pre-feasibility and any feasibility studies, cooperation of project stakeholders, timely EA review and permitting processes, and receipt of applicable governmental approvals.

Continuing the Conversation You can help us to develop the Black Thor chromite resource by participating in the environmental assessment Cliffs is committed to listening to and openly addressing your suggestions – we want to hear your views For more information contact: Kimberly Regan Manager-Public Affairs Cliffs Natural Resources Inc. 1100 Superior Avenue Suite 1500 Cleveland, OH 44114 1-855-353-4766 Facsimile 216-694-4035 [email_address]

OPERATIONAL EXCELLENCE A WORLD LEADER STEWARDSHIP Rev. 10 Nov. 03, 2011 cliffsnaturalresources.com

Cliffs Chromite Overview Nov. 2011

More Related Content

What's hot (20)

Viewers also liked (18)

Similar to Cliffs Chromite Overview Nov. 2011 (20)

Recently uploaded (20)

Cliffs Chromite Overview Nov. 2011