Minorca Property (Minorca Mine) Production Update: $70M NPV Over a 14-Year Mine Life
Cleveland-Cliffs Inc.'s Minorca Property (Minorca Mine) in St. Louis County, Northeastern Minnesota, USA (Mesabi Iron Range) has a production guidance 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 (Minorca Mine) has reported production guidance results for the iron ore (magnetite / flux 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 US$98/WLT pellet three-year trailing average revenue (2017-2019); Mineral Resources and Reserves evaluated using a US$90/LT wet 62.5% Fe flux pellet price FOB Lake Superior.
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 Mineral Reserves). Metallurgical recovery averages 34.1%. The open-pit strip ratio is 1.23:1 (waste to crude ore).
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 Production Update 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 512 projects we track
- Mine life
- 14yrs
- Study price assumption
- US$98/WLT pellet three-year trailing average revenue (2017-2019); Mineral Resources and Reserves evaluated using a US$90/LT wet 62.5% Fe flux pellet price FOB Lake Superior
Across the 512 projects we track, this one ranks above only 8% on after-tax NPV, and that percentile is the honest starting point. A US$70M NPV is small in absolute terms, and it sits well below the company's US$6.40B market cap on a rough currency-adjusted basis. For a mid-cap with 11 projects in the portfolio, this is a modest contributor rather than a value driver, and the gap between the NPV and the market cap should not be read as hidden upside: with ten other assets in the book, the market is valuing the portfolio, not this mine.
What distinguishes the asset is not its returns but its status. These are operating-mine figures, not a forward study, which removes the financing, permitting and construction risk that dominates development-stage peers. The 14-year mine life gives a defined production runway without requiring capital decisions that would otherwise swamp a company of this size. That operating base is the real substance here, and it is why the low NPV rank matters less than it would for a PEA-stage project.
The constraint to watch is price. The study rests on a US$98/WLT pellet three-year trailing average (2017-2019) for revenue, with resources and reserves evaluated at US$90/LT wet 62.5% Fe flux pellet FOB Lake Superior. Those assumptions are the sensitivity that decides this asset: whether pellet realisations hold at those levels across the remaining mine life is the question on which the NPV, and the project's contribution to the portfolio, ultimately rest.
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.