Minorca Property Feasibility Study: $70M NPV Over a 14-Year Mine Life
Cleveland-Cliffs Inc.'s Minorca Property in USA, St. Louis County, Northeastern Minnesota (Mesabi Iron Range) has a Feasibility Study outlining an after-tax NPV of $70M. The mine plan runs 14 years at about 2.8 MLT/y flux pellets per year.
Cleveland-Cliffs Inc.'s Minorca Property has reported Feasibility Study results for the iron (magnetite/taconite) project in USA, St. Louis County, Northeastern Minnesota (Mesabi Iron Range). The study headlines an after-tax net present value of $70M at a 10% discount rate. It reflects Cleveland-Cliffs Inc.'s (CLF) latest disclosed economics for the asset.
Economics. The after-tax NPV is $70M using a 10% discount rate. All-in sustaining costs are pegged at 85.53 USD/WLT pellet. Economics are based on Three-Year Trailing Average Revenue $98/WLT pellet; Reserves evaluated at US$90/LT wet flux pellet (62.5% Fe, 2% moisture).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 14 years. Average annual production is approximately 2.8 MLT/y flux pellets. Average head grade is 23.8% MagFe. Metallurgical recovery averages 34.2%. The open-pit strip ratio is 1.23:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Cleveland-Cliffs Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 102.8 MLT | 23.7% MagFe | 35.0 MLT wet pellets |
| Probable | 6.8 MLT | 25.1% MagFe | 2.5 MLT wet pellets |
| Proven & Probable | 109.7 MLT | 23.8% MagFe | 37.4 MLT wet pellets |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 484.3 MLT | 22.9% MagFe | 159.3 MLT wet pellets |
| Indicated | 317.2 MLT | 22.9% MagFe | 104.4 MLT wet pellets |
| Measured & Indicated | 801.5 MLT | 22.9% MagFe | 263.7 MLT wet pellets |
| Inferred | 30.1 MLT | 21.1% MagFe | 9.1 MLT wet pellets |
Our Analysis
- NPV after-tax
- $70M
higher than 8% of 360 projects we track
- Mine life
- 14yrs
- Study price assumption
- Three-Year Trailing Average Revenue $98/WLT pellet; Reserves evaluated at US$90/LT wet flux pellet (62.5% Fe, 2% moisture)
The project sits at the 8th percentile of the 360 tracked projects, a rank that tells you more about the universe than about this asset. It is not an outlier in either direction, and the after-tax NPV of $70M reflects a modest, single-asset iron development rather than a company-maker. For a mid-cap with a US$6.64B market cap, this is a portfolio rounding error, and the NPV-to-capitalization gap cuts both ways: either the market has already priced in the limited upside, or it is skeptical that a project this small will ever clear the financing and permitting hurdles to matter. The feasibility study, with its typical plus or minus 15% band, is the strongest signal here, but it is a signal about a project that will not move the needle for this company.
The constraint that matters most is jurisdiction, not geology. Northeastern Minnesota's Mesabi Iron Range is a mature, mining-friendly region with established infrastructure and a permitting culture that is demanding but predictable. That lowers execution risk relative to a greenfield site in a higher-risk jurisdiction, and it is the reason the FS numbers carry weight. The 14-year mine life and the study's price assumptions, a Three-Year Trailing Average Revenue of $98/WLT pellet and reserves at US$90/LT wet flux pellet, are conservative anchors. The study does not reach for a bullish case, which is a point in its favor.
The question that decides this project is whether the company ever builds it. At this scale, with a market cap that dwarfs the NPV, the project is not a financing challenge, it is a strategic choice. If the company treats it as a bolt-on to its existing portfolio, the returns are acceptable but immaterial. If it is a distraction from larger opportunities, the 8th-percentile rank is a warning. Either way, the investor is betting on corporate intent, not on the iron ore itself.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.