United Taconite Property (Thunderbird Mine North and South / Fairlane Facility) Production Update: $591M NPV Over a 51-Year Mine Life
Cleveland-Cliffs Inc.'s United Taconite Property (Thunderbird Mine North and South / Fairlane Facility) in St. Louis County, Northeastern Minnesota, USA has a production guidance outlining an after-tax NPV of $591M. The mine plan runs 51 years at about 5.1 MLT/y pellets per year.
Cleveland-Cliffs Inc.'s United Taconite Property (Thunderbird Mine North and South / Fairlane Facility) has reported production guidance results for the iron ore (magnetite / taconite pellets) project in St. Louis County, Northeastern Minnesota, USA. The study headlines an after-tax net present value of $591M at a 10% discount rate. It reflects Cleveland-Cliffs Inc.'s (CLF) latest disclosed economics for the asset.
Economics. The after-tax NPV is $591M using a 10% discount rate. Economics are based on Three-Year Trailing Average Revenue $98/WLT pellet (economic analysis); Mineral Reserves reported at $90/LT wet standard pellet price FOB Lake Superior; Mineral Resources limited with a US$90/LT pellet value.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 51 years. Average annual production is approximately 5.1 MLT/y pellets. Average head grade is 22.3% MagFe (LOM ROM crude ore). Metallurgical recovery averages 33.3%. The open-pit strip ratio is 1.1.
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 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 | 143.1 MLT | 23.1% MagFe | 49.6 MLT wet pellets |
| Probable | 631.5 MLT | 22.1% MagFe | 208.0 MLT wet pellets |
| Proven & Probable | 774.6 MLT | 22.3% MagFe | 257.6 MLT wet pellets |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 91.8 MLT | 23.6% MagFe | 32.5 MLT wet pellets |
| Indicated | 638.6 MLT | 22.2% MagFe | 199.2 MLT wet pellets |
| Measured & Indicated | 730.4 MLT | 22.3% MagFe | 231.8 MLT wet pellets |
| Inferred | 25.9 MLT | 21.5% MagFe | 8.0 MLT wet pellets |
Our Analysis
- NPV after-tax
- $591M
higher than 48% of 553 projects we track
- Mine life
- 51yrs
- Study price assumption
- Three-Year Trailing Average Revenue $98/WLT pellet (economic analysis); Mineral Reserves reported at $90/LT wet standard pellet price FOB Lake Superior; Mineral Resources limited with a US$90/LT pellet value
This asset sits in the upper-middle of the 553 projects we track, with an after-tax NPV of $591M ranking higher than 48% of that universe. That is the honest read: a solid, unremarkable position. It is not a headline outlier, and the ranking tells you more about consistency than about upside. For an investor, the takeaway is that this is a project whose value rests on execution and scale rather than on any single exceptional number.
The constraint that matters most is not the returns line, it is the funding and scale picture. This is one of 18 projects we track for a company with a US$7.41B market cap, a mid-cap with a diversified portfolio. The NPV sits well below that market cap on a rough currency-adjusted basis, which cuts two ways. It can mean the asset is not yet reflected in the equity, or it can mean the market is discounting something: financing, dilution, permitting or commodity risk. A diversified mid-cap with 18 projects does not need any single asset to carry it, which lowers the binary risk but also means this project is unlikely to re-rate the stock on its own.
The study stage is the other thing to weigh. These are operating-mine figures, not a forward study, which deserves more confidence than a scoping-level PEA. The 51-year mine life is long, and the price assumptions are internally consistent: a three-year trailing average of $98/WLT pellet for the economic analysis, with reserves and resources both limited at $90/LT FOB Lake Superior. The jurisdiction, St. Louis County in northeastern Minnesota, is a established iron ore district in a mining-friendly state. The single question that decides whether this works: can a mid-cap with 18 projects fund and sustain a 51-year operation without the asset becoming a drag on the portfolio?
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.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.