Northshore Property Feasibility Study: $619M NPV Over a 48-Year Mine Life
Cleveland-Cliffs Inc.'s Northshore Property in Northeastern Minnesota, USA (St. Louis County & Lake County) has a Feasibility Study outlining an after-tax NPV of $619M. The mine plan runs 48 years at about 5 MLT/y wet pellets per year.
Cleveland-Cliffs Inc.'s Northshore Property has reported Feasibility Study results for the iron ore (magnetite taconite pellets) project in Northeastern Minnesota, USA (St. Louis County & Lake County). The study headlines an after-tax net present value of $619M at a 10% discount rate. It reflects Cleveland-Cliffs Inc.'s (CLF) latest disclosed economics for the asset.
Economics. The after-tax NPV is $619M using a 10% discount rate. Economics are based on Three-Year Trailing Average Revenue of $98/WLT pellet (economic analysis); Mineral Reserves evaluated at US$90/LT wet standard pellet FOB Lake Superior; Mineral Resources use US$90/LT pellet value.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 48 years. Average annual production is approximately 5 MLT/y wet pellets. Average head grade is 24.6% MagFe (crude ore reserve grade). Metallurgical recovery averages 29.4%. The open-pit strip ratio is 0.8.
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 | 303.2 MLT | 25.3% MagFe | 92.0 MLT wet pellets |
| Probable | 519.2 MLT | 24.1% MagFe | 149.6 MLT wet pellets |
| Proven & Probable | 822.4 MLT | 24.6% MagFe | 241.6 MLT wet pellets |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 766.7 MLT | 22.1% MagFe | 195.3 MLT wet pellets |
| Indicated | 390.8 MLT | 22.4% MagFe | 103.1 MLT wet pellets |
| Measured & Indicated | 1,157.5 MLT | 22.2% MagFe | 298.4 MLT wet pellets |
| Inferred | 13.6 MLT | 19.8% MagFe | 3.1 MLT wet pellets |
Our Analysis
- NPV after-tax
- $619M
higher than 50% of 550 projects we track
- Mine life
- 48yrs
- Study price assumption
- Three-Year Trailing Average Revenue of $98/WLT pellet (economic analysis); Mineral Reserves evaluated at US$90/LT wet standard pellet FOB Lake Superior; Mineral Resources use US$90/LT pellet value
This is a long-life asset in a familiar commodity, and the 48-year mine life is the first thing worth registering: a magnetite taconite pellet operation in northeastern Minnesota that can run for nearly five decades is not a marginal, price-taking story that lives or dies on a single cycle. It is a steady, bulk-commodity producer, and that durability is precisely what shapes how an investor should weigh it.
Against the 550 projects we track across all commodities, its after-tax NPV of $619M ranks higher than half of them. That is the honest read: solidly mid-pack, not an outlier in either direction. There is no headline number here that demands attention on its own. The feasibility study is the build-ready estimate, typically a plus or minus 15% band, so these figures carry more weight than a scoping-level PEA would. The economics rest on a three-year trailing average revenue of $98 per wet long tonne of pellets, with reserves and resources evaluated at $90 per long tonne FOB Lake Superior. That trailing-average basis is the study's own assumption and the only lens available here; treated as a sensitivity, it is the more defensible choice for a 48-year operation than a single point-in-time figure would be, though the returns remain exposed to how pellet pricing behaves over the life of the mine.
The constraint that matters most is scale against the parent. The NPV sits well below the company's US$7.41B market cap, and this is one of 17 projects we track for the company, a diversified portfolio. That cuts both ways: a project this size relative to the enterprise will never move the needle on its own, and it competes internally for capital against sixteen other assets. The question that decides whether this works is whether a mid-cap with a broad portfolio will actually fund and advance a long-life, mid-pack iron ore build, or let it sit.
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.