Minorca Property (Laurentian, East 1, East 2 Pits) Feasibility Study: $70M NPV Over a 14-Year Mine Life
Cleveland-Cliffs Inc.'s Minorca Property (Laurentian, East 1, East 2 Pits) in St. Louis County, Northeastern Minnesota, USA (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 wet flux iron ore pellets per year.
Cleveland-Cliffs Inc.'s Minorca Property (Laurentian, East 1, East 2 Pits) has reported Feasibility Study results for the iron ore (magnetite/taconite pellets) project in St. Louis County, Northeastern Minnesota, USA (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. Economics are based on Three-Year Trailing Average Revenue of $98/WLT pellet used in economic analysis; Mineral Reserves evaluated at $90/LT wet flux pellet FOB Lake Superior; Mineral Resources pit shell based on US$90/LT pellet value (62.5% Fe wet flux pellet).
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 wet flux iron ore pellets. Average head grade is 23.8% MagFe (crude ore reserve grade). Metallurgical recovery averages 34.1%. The open-pit strip ratio is 1.23:1 (waste to crude ore, resource pit) and 0.8 (reserve mining stripping ratio).
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 527 projects we track
- Mine life
- 14yrs
- Study price assumption
- Three-Year Trailing Average Revenue of $98/WLT pellet used in economic analysis; Mineral Reserves evaluated at $90/LT wet flux pellet FOB Lake Superior; Mineral Resources pit shell based on US$90/LT pellet value (62.5% Fe wet flux pellet)
This is a feasibility study, not a scoping exercise, and that distinction carries most of the weight here. A build-ready estimate with a plus or minus 15% band on a 14-year magnetite pellet operation in St. Louis County, Minnesota, means the numbers deserve to be taken at face value rather than discounted as early-stage optimism. The asset is also already in production, which removes a layer of execution risk that most studies in our database still carry.
The after-tax NPV of $70M ranks higher than only 8% of the 527 projects we track across all commodities. That is the honest headline: a technically mature, producing, well-located asset that nonetheless sits in the bottom decile of our peer set on absolute value. For an investor, the rank matters more than the study quality. Feasibility-level confidence does not change the fact that this is a small economic prize relative to the universe it competes against for capital.
The constraint is scale, not risk. A US$6.46B mid-cap carrying 14 projects does not need this one to work, and an NPV well below its own market cap means the asset is a rounding error in the portfolio rather than a driver of the equity story. That cuts both ways: no single-project blow-up, but also no meaningful re-rating from success here. The economics rest on pellet pricing assumptions of $98/WLT on a three-year trailing average and $90/LT for reserves and pit shells, so the return profile is a leverage play on iron ore pellet premiums holding up over a 14-year life. The question that decides this project is whether a $70M NPV can justify the capital and management attention it demands inside a diversified mid-cap.
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.