Cleveland-Cliffs

Cleveland-Cliffs Inc.
Company type	Public
Industry	Steel production, iron ore mining
Founded	1847; 179 years ago
Founder	Samuel Mather
Headquarters	Cleveland, Ohio, United States
Area served	North America
Key people	Lourenco Goncalves (Chairman, President, and CEO)
Products	Iron ore pellets, steel, coke, hot-briquetted iron (HBI)
Website	www.clevelandcliffs.com

Cleveland-Cliffs Inc. (CCI, previously known as Cliffs Natural Resources) is an American steel producer headquartered in Cleveland, Ohio. The company focuses on the extraction, processing, and pelletizing of iron ore, as well as steel manufacturing activities such as stamping and tooling. As of 2022, it was ranked as the 25th-largest steel producer worldwide and stood as the third-largest in the United States, while also being the leading flat-rolled steel manufacturer across North America.

Operations

Cleveland-Cliffs manages six iron ore mining sites—four located in Minnesota and two in Michigan, including the Empire Mine, which remains indefinitely closed. These operations yield a variety of iron ore pellets, including standard, fluxed, and direct reduced (DR) types, which serve blast furnace and direct reduced iron (DRI) processes. The company benefits from its proximity to the Great Lakes, facilitating efficient rail transport to port facilities for shipment to steel producers throughout North America. Between 2018 and 2020, annual iron ore product sales fluctuated between 12 and 21 million long tons.

The company also operates a hot-briquetted iron (HBI) plant situated in Toledo, Ohio. This facility produces a DRI substitute for scrap metal that improves the quality of steel produced in electric arc furnaces.

Furthermore, Cleveland-Cliffs owns three coke production plants located in Burns Harbor, Indiana; Monessen, Pennsylvania; and Warren, Ohio. These plants have a combined annual capacity of 2.6 million tons. Additionally, the company holds a coal mining operation in Princeton, West Virginia.

Its fully integrated steelmaking and finishing complexes are distributed across Kentucky, Indiana, Illinois, Ohio, Michigan, Pennsylvania, West Virginia, North Carolina, and Ontario. Collectively, these facilities possess an annual raw steel production capacity close to 23 million net tons.

19th century

The earliest forerunner of Cleveland-Cliffs was the Cleveland Iron Mining Company, established in 1847 and officially chartered in Michigan by 1850. Founder Samuel Mather and his partners exploited rich iron ore reserves found in Michigan’s Upper Peninsula. The opening of the Soo Locks in 1855 allowed for efficient transportation of iron ore from Lake Superior to Lake Erie, which supported large-scale steel production near coal resources along Lake Erie’s southern shore.

During the Upper Peninsula miners' strike of 1865, the company’s operations were restored through government intervention. In the latter part of the 19th century, Cleveland Iron Mining pursued aggressive expansion through acquisitions to increase its market presence. A significant merger occurred in 1890 with Jeptha Wade’s Iron Cliffs Company, prompting a rebranding to Cleveland-Cliffs Iron Company. Infrastructure enhancements included constructing the Lake Superior and Ishpeming Railroad in 1892 to connect mining sites with company-owned docks on Lake Superior.

20th century

Under the leadership of William G. Mather—Samuel’s son and company president from 1890 until 1947—Cleveland-Cliffs shifted focus from Michigan’s hard-rock iron ore to Minnesota’s softer hematite deposits. Mather streamlined operations while diversifying into steel manufacturing to strengthen the firm’s business model. The company pioneered the development of classic lake freighters; notably launching the SS William G. Mather in 1925 to improve bulk cargo transport across the Great Lakes.

Cleveland-Cliffs was also at the forefront of introducing electrification in mining operations and advancing employee welfare programs such as eight-hour workdays, pension plans, and safety initiatives. In 1930, it secured a controlling interest in Corrigan-McKinney Steel—a major steelworks valued between $60 million and $65 million—enhancing vertical integration into steel production. By 1938, following recovery from the Great Depression, it reported record-breaking sales and profits.

During World War II, Cleveland-Cliffs set new records for iron ore shipments on the Great Lakes and introduced radar technology aboard its flagship vessel by 1946. The following year saw a merger with its holding entity Cliffs Corporation, consolidating assets totaling $95 million.

Post-war demand surged during periods of military conflict and consumer growth. Leadership transitioned to Edward B. Greene in 1933 who continued expansion efforts by opening new mines and pelletizing plants through mid-century. A notable development was the inauguration of Tilden Mine in 1974—the only mine worldwide producing both hematite and magnetite pellets.

In 1970, Cleveland-Cliffs extended its reach internationally by establishing a high-grade iron ore mine at Pannawonica in Western Australia. This operation was supported by dedicated rail lines and processing facilities but eventually ceased pellet plant activities before 1980 due to rising diesel fuel costs.

Throughout the 1970s, Cleveland-Cliffs diversified into sectors including uranium extraction, shale oil production, oil and gas drilling services, as well as forest products; however, it refocused on core iron ore activities during the 1980s by divesting these non-core assets. Economic downturns led to significant downsizing: several mines and pellet plants were shuttered between 1979 and 1996; more than half of Marquette Iron Range employees were laid off; and Great Lakes shipping operations were discontinued in 1984.

In November 1986, Cleveland-Cliffs expanded its holdings by acquiring rival Pickands Mather & Company from Moore-McCormack Resources. This acquisition added stakes in multiple mining ventures across Minnesota, Canada, and Australia. Further growth followed with the purchase of Northshore Mining located in Silver Bay, Minnesota in 1994.

21st century

At the start of 2001, Cleveland-Cliffs oversaw operations of LTV Steel, previously known as J&L Steel, which ceased operations permanently following the bankruptcy of its parent company, Ling-Temco-Vought. That same year, Cleveland-Cliffs reduced its dividend by 73% due to depressed steel market prices. Consequently, the Empire iron ore mine was shut down for half a year. The 2002 U.S. steel tariff introduced by President George W. Bush provided a boost to domestic steel manufacturers, allowing Cleveland-Cliffs to expand internationally and diversify into other mineral sectors. This approach resulted in acquisitions of iron ore assets across Brazil, Canada, and Australia, along with coal properties in both Australia and the United States. In 2003, the company established United Taconite LLC through a joint venture with Laiwu Steel by acquiring the Eveleth Mines assets; it secured full ownership in 2008 via a $100 million transaction involving cash and stock.

In June 2007, Cleveland-Cliffs made its first domestic coal acquisition by purchasing PinnOak Resources, which operated in Alabama and West Virginia. Reflecting this strategic shift toward coal, the company rebranded as Cliffs Natural Resources in October 2008. Although it planned to acquire Alpha Natural Resources that year, the deal was abandoned due to the global financial crisis, resulting in a $70 million termination fee.

By 2010, Cliffs had acquired Freewest Resources Canada for C$240 million, gaining full control over significant chromite deposits within Ontario’s Ring of Fire region. It further increased its chromite holdings by purchasing Spider Resources for C$125 million but divested these assets in 2015 to Noront Resources for US$20 million.

A major acquisition occurred in 2011 when Cliffs purchased Consolidated Thompson Iron Mines from Wuhan Iron and Steel Corporation for C$4.9 billion, including the Bloom Lake iron ore mine located in Quebec. That same year, Cliffs entered the Fortune 500 list at position 477 based on its 2010 financial results.

In July 2013, CEO Joseph Carrabba retired; James Kirsch assumed the role of non-executive chairman. Later that year, Gary Halverson was named president and COO and became CEO in early 2014. During the 2014 annual meeting, activist hedge fund Casablanca Capital gained control of the board and appointed Lourenco Goncalves as chairman, president, and CEO. The board redirected corporate strategy to concentrate on strengthening iron ore operations within the U.S., moving away from previous global diversification efforts.

By December 2015, Cliffs divested its remaining North American coal assets and announced plans to close Michigan’s Empire Mine in early 2016. In August 2017, the company returned to its original name, Cleveland-Cliffs Inc., and divested its Asia Pacific and Australian iron ore holdings in 2018.

Cleveland-Cliffs significantly expanded through key acquisitions in 2020: it acquired AK Steel Holding for $1.1 billion in March and completed the purchase of ArcelorMittal USA’s operations for roughly $1.4 billion in December, establishing itself as North America’s largest producer of flat-rolled steel and iron ore pellets.

In February 2022, Cleveland-Cliffs agreed to a $3 million settlement related to violations of the Clean Water Act following a cyanide and ammonia spill affecting Lake Michigan.

On July 28, 2023, Cleveland-Cliffs proposed a $10 billion cash-and-stock acquisition offer for U.S. Steel; this bid was supported by the United Steelworkers union but rejected by U.S. Steel on August 13. Subsequently, U.S. Steel agreed to be acquired by Japan’s Nippon Steel for $14.9 billion instead. However, President Joe Biden blocked this merger in January 2025; both U.S. Steel and Nippon Steel filed lawsuits against the U.S. government alleging violations of due process and anticompetitive behavior involving Cleveland-Cliffs’ CEO Lourenco Goncalves and union leadership.

During his ongoing efforts to acquire U.S. Steel, Goncalves attracted controversy with comments labeling Japan as "evil" and worse than China; these remarks drew substantial media scrutiny in Japan.

On July 15, 2024, Cleveland-Cliffs revealed plans to purchase Canadian steelmaker Stelco for $2.5 billion through a combination of cash and stock payments, further extending its presence across North America.

Carbon footprint

By December 31, 2020, Cleveland-Cliffs disclosed total greenhouse gas emissions, encompassing both direct and indirect CO₂e, amounting to 32,200 Kt, demonstrating its environmental footprint consistent with sustainability reporting criteria.

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