KEY POINTS
- Mesabi Metallics wins key ruling in antitrust case against Cleveland-Cliffs.
- Court finds evidence suggesting Cleveland-Cliffs engaged in anticompetitive practices.
- Mesabi’s 7-million-ton pellet plant remains on track for 2026 completion.
Mesabi Metallics had a legal win in its protracted antitrust lawsuit against Cleveland-Cliffs which is among the leading iron-ore suppliers in the United States. The federal court in Delaware said that there is a basis to believe that Cleveland-Cliffs possibly violated the law to frustrate Mesabi from progressing with its planned iron ore mine and pellet plant in Minnesota.
Court supports antitrust claims
In a lawsuit seeking $1.9 billion in damages, Mesabi accused Cleveland-Cliffs of engaging in anticompetitive practices that disrupted its project. However, the court’s decision opens the path for the case to go to trial, with Mesabi arguing that Cleveland-Cliffs’ actions hindered the construction of its 7-million-ton-per-year pelletization plant. Furthermore, the plant, located on 16,000 acres in Nashwauk, Minnesota, is expected to begin operations in 2026.
The court’s opinion stated that Cleveland-Cliffs’ acquisition of key mining properties and its exclusive supply agreements, combined with pressure on contractors to sever ties with Mesabi, may have substantially blocked Mesabi from entering the market. However, this behavior, the court concluded, could reasonably be viewed as anticompetitive.
Mesabi’s CEO, Joe Broking, expressed optimism about the court’s decision, stating that it confirms the company’s belief that Cleveland-Cliffs impeded their ability to complete the project. Moreover, he added that this ruling, along with continued investment from Essar Group, positions the company for future success after previous delays.
Project delays and future outlook
Mesabi Metallics, part of the Essar Group, has faced numerous challenges in bringing its Nashwauk project to fruition. With assets across the U.S., UK, and India, the company remains focused on overcoming obstacles to launch the pelletizing plant. The court’s ruling is a significant step forward, allowing Mesabi to move forward with its plans despite past setbacks.
The project is crucial for Minnesota’s iron ore industry and is expected to play a key role in the regional economy once operational. Despite the legal battle, the company remains committed to commencing operations in early 2026.
As the case proceeds to trial, the outcome could reshape the competitive landscape of the U.S. iron ore market. Cleveland-Cliffs, one of the largest producers in the region, faces mounting pressure as Mesabi pursues damages and the opportunity to compete on a more level playing field.
The outcome of this case will be closely watched by industry experts and stakeholders, as it could have far-reaching implications for both companies and the broader iron ore market.
Source: Mining.com
