Cleveland-Cliffs Inc (NYSE: CLF), which will be renamed Cliffs Natural Resources in mid-October, today said it recently signed three new supply agreements from its North American Iron Ore segment at World Pellet Prices as defined by the “Eastern Canada Pellet Price,” which is currently 228.82 U.S. cents per natural metric ton unit (i.e., approximately $148/metric ton for pellets containing 65% iron content).

Donald J. Gallagher, Cliffs president, North American Business Unit, said, “These three agreements illustrate the extraordinary demand for metallics that are available to serve the U.S. and global steelmaking industries and the lengths to which global steelmakers are willing to go to secure raw materials for production. All three agreements are with customers that have historically been outside of our North American Iron Ore segment’s natural geographic market, with these pellets destined for Europe, Asia and Latin America.”

The three new supply agreements each have a five-year term, with one of the agreements beginning in 2008 and the other two beginning in 2009. The combined sales tonnage for these agreements are minimums of:

• 300,000 metric tons in 2008,
• 850,000 metric tons in 2009,
• 1,100,000 metric tons in 2010,
• 800,000 metric tons in 2011,
• 1,100,000 metric tons in 2012, and
• 800,000 metric tons in 2013.

Cliffs also has the option to supply addition tonnage if available. Pricing under these agreements is determined annually by the Eastern Canada Pellet Price settlement.

The three new agreements include terms of f.o.b.