 1 Laurie Brlas Senior Vice President CFO and Treasurer Steve Baisden Director, Investor Relations and Corporate Communications KeyBanc Capital Markets Basic Materials and Packaging Conference Boston, MA September 19, 2007 A WORLD LEADER IN IRON ORE AND METALLURGICAL COAL Exhibit 99(a) |
 2 This presentation includes predictive information that is intended to be made as “forward-looking” within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its forward- looking information is based on reasonable assumptions, such information is subject to risks and uncertainties, which could cause materially different results. Important factors that could cause actual results to differ materially from those in the forward-looking information are set forth in the Company’s most recent Annual Report and reports on Form 10-K and 10-Q, and news releases filed with the Securities and Exchange Commission. All reports and news releases are available on Cliffs’ website www.cleveland-cliffs.com. FORWARD-LOOKING STATEMENTS |
 3 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 4 Growth and Diversification • Revenue Growth • Product Diversification • Geographic Growth Operational Excellence • Safety • Technical Competencies • Operating Efficiencies Global Execution • Competencies of the Firm • Outlook of Personnel • Global Scalability Shareholder Returns • Shareholder Value • Risk Management • “Earning the Right to Grow” Growth and Diversification Shareholder Returns Global Execution Operational Excellence Strategy VISION OF CLIFFS: FOUR STRATEGIC IMPERATIVES |
 5 Strategy CLIFFS’ STRATEGY • Maintain the core – North American Iron Ore • Expand globally and diversify products – Cliffs Asia-Pacific – Cliffs Latin America – PinnOak Acquisition • Capitalize on Cliffs’ unique technological expertise – Concentrating and processing lower-grade ores into high-quality products – Partnering with Kobe to use its ITmk3 technology |
 6 Strategy MINERALS REVIEW Attractive Coal–Domestic Metallurgical Coal–Domestic Thermal Bentonite Kaolin Silver Zeolites Uranium 0-3% Platinum Group Metals Nickel Aggregates Cobalt Gold Lithium Rare Earths Talc Tin Zinc 3-5% Iron Ore Diamonds Coal–Seaborne Metallurgical Manganese Coal–Seaborne Thermal Molybdenum Bauxite Copper Oil Sands >5% Most Promising Least Promising Fit with Cliffs (Supply/Demand Characteristics, Core Competencies) World Demand Growth Unattractive Average |
 7 1. Analysis proves it to be an attractive market – Strong demand driven by world growth in steel production – Geologic shortage of quality ore in Asia – Attractive supply/demand dynamics 2. Acquisition opportunities that do not interest “Big Three” 3. Opportunities to partner – Steel mills seek stability of supply and competitive pricing – One of the few alternatives to the Big Three – Operational expertise, credibility as partner 4. However, attractive assets are scarce, and currently high priced – First priority, but not the only considered Target: 50% of growth in iron ore Strategy FIRST PRIORITY – IRON ORE |
 8 Good fit with current operations Historically holds a cost advantage over natural gas Stable pricing over the long term Good fit with operational competencies and existing customer base Opportunity to serve high-growth emerging markets from low-risk Australian and U.S. production base Business Environment Supply base becoming more concentrated: Approximately half of U.S. market share belongs to top five players Concentrated industry: Approximately half of U.S. market share belongs to top three players Supply Dynamics Steady growth of coal-based power generation Very large U.S. market - 12 times the value of U.S. iron ore Attractive exposure to emerging- market regions 2-5% average annual growth of markets served by Australia Demand Growth Thermal Coal Met Coal Strategy TARGET MARKETS: MET AND THERMAL COAL |
 9 • Continue technology innovation and leadership in turning low-grade ores into high-quality products – Commercialization of Kobe’s
ITmk3 technology • Opens EAF market to Cliffs • Use the technology to reduce transportation cost in remote locations • Plans for a 500,000 ton commercial-scale plant at Empire Mine location in Michigan Strategy NEW IRON TECHNOLOGY |
 10 TRANSFORMATION TO AN INTERNATIONAL MINING ENTITIY Cliffs acquires Portman Limited, Australia’s then third-largest iron ore miner Selects Michigan site for iron nugget plant Acquires PinnOak Resources, premium-quality metallurgical coal producer Cliffs agrees to sell Wabush Mines, Canada Cliffs transitions from mine manager to international merchant mining company Diversifies into coal through 45% economic interest in the Sonoma Project, an Australian coking and thermal coal project Joseph Carrabba named CEO; Cliffs reorganizes into business-unit structure Expands into Latin America; acquires 30% ownership position in Brazilian iron ore project Amapá Mine Early 2000s 2005 2006 2007 Transformation |
 11 Cliffs North American Iron Ore Australia Iron Ore Other North American Coal CLEVELAND-CLIFFS BUSINESS UNITS Transformation |
 12 CLIFFS EXECUTIVE MANAGEMENT “DEEPENING THE BENCH” Transformation • Laurie Brlas, SVP, Chief Financial Officer and Treasurer, December 2006 An extensive accounting and financial career spanning more than 20 years, most recently
as senior vice president, chief financial officer of sterilization systems
manufacturer STERIS Corporation. Her responsibilities include finance,
financial reporting, accounting, financial planning, investor relations,
and treasury functions. • Steven M. Raguz, VP, Corporate Planning and Strategic Analysis, March 2007 Formerly, senior director, financial planning and analysis of STERIS Corporation.
Responsible for designing processes to ensure consistency and appropriate
information to implement the Company’s strategy, as well as
long-term planning, oversight of analysis and forecasting functions. • William Brake, EVP, Cliffs Metallics, and Chief Technical Officer, April 2007 Former executive vice president, operations for Mittal Steel USA, with full operating responsibility for all of Mittal’s domestic steel operations. He began his career with LTV Steel, and following its
acquisition by International Steel Group, was responsible for the initial
re-start of the Cleveland, Ohio, facilities. • William C. Boor, SVP, Business Development, May 2007 Former executive vice president, strategy and development, for American Gypsum Company,
a subsidiary of Eagle Materials Inc. He is responsible for identifying and
leading initiatives to support the growth of the Company and brings diverse
experience in manufacturing management, process engineering, financial
management, investor relations and marketing to his new role. |
 13 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 14 • Very few steel producers have vertically integrated • 1.8 billion metric tons of iron ore production capacity • Limited new discovery of large deposits • Pricing is negotiated and set annually among the largest buyers and sellers – 2007 settlements • 9.5% increase for lump and fines ore • 5.8% increase for pellets • Approximately 80% fines, lump and concentrates • About 20% pellets (for blast furnaces and direct- reduction plants) Industry: Iron Ore GLOBAL IRON ORE INDUSTRY PROFILE |
 15 NORTH AMERICAN INTEGRATED STEEL 2007 Market Participants Mittal 39% U.S. Steel 40% AK Steel 7% Other 7% Algoma 4% Severstal 3% Industry: Iron Ore 2001 Market Participants U.S. Steel 20% Bethlehem 15% Other 13% LTV 11% National 10% Stelco 10% Ispat 6% Weirton 5% Algoma 4% Rouge 3% Dofasco 3% |
 16 Iron Ore Producers by Company Metalloinvest 2% Kumba 2% NDMC 2% Cliffs 2% Other 57% Rio Tinto 10% CVRD 15% CVG 1% LKAB 1% U.S. Steel 1% GLOBAL STEEL Steel Producers by Company Arcelor Mittal 10% Other 72% Shandong 2% Nucor 2% U.S. Steel 2% Corus 2% Baosteel 2% Anben 2% JFE 3% Nippon 3% Posco 3% Concentration vs Fragmentation Industry: Iron Ore BHP 7% |
 17 IRON ORE PRODUCER AND CONSUMER COUNTRIES Consumers by Country China 51% Japan 8% Middle East & Africa 3% North America 5% South America 5% Commonwealth of Independent States 9% Europe 11% Other Asia & Oceania 8% Producers by Country China 32% Brazil 18% Australia 17% Other 8% India 8% Commonwealth of Independent States 11% North America 6% 2006 World Production: 1,755 MM Tonnes Industry: Iron Ore |
 18 820 795 780 784 747 720 420 395 350 221 127 283 0 250 500 750 1,000 1,250 2007E 2006 2005 2004 2003 2000 Rest of World (5-YR CAGR 3%) China (5-YR CAGR 27%) CHINA’S IMPACT ON THE WORLD STEEL INDUSTRY MM Tonnes (Production) 847 968 1,067 1,130 1,240 1,190 CAGR: 8% Industry: Iron Ore |
 19 $0 $10 $20 $30 $40 $50 $60 $70 $80 Pellets Lump Fines Pellet Prices $DMT Based on Eastern Canadian Pellet Price With 64% Iron Lump and Fines $DMT for Australian Iron Ore Shipments to Japan +86% +5.8% +19% +71.5% -3% +9.5% +71.5% +19% +9.5% Industry: Iron Ore GLOBAL IRON ORE HISTORIC MARKET PRICES |
 20 COAL MARKET DYNAMICS • 2006 global coal production: 6.3B short tons – Vast majority used for electric generation – 820MM tons (13%) met coal • 2006 U.S. total coal production: 1.16B tons – Vast majority used for electric generation – Coking plant consumption: 23.0MM tons (2% of total) – U.S. is net exporter of coal • 49.6MM tons of total coal exported from U.S. in 2006 • 27.5MM tons (55%) was met coal • Largest importer of U.S.-produced met coal: Europe Industry: Coal Source: US Energy Information Administration, 2006 Review: U.S. Coal Supply and
Demand |
 21 COAL MARKET DYNAMICS • Supply constraints continue to impact the met coal market • Weaker dollar making U.S. exports more attractive • Increased use of pulverized coal injection (PCI coal) driving demand for higher-quality coals • Economic growth in China and India continuing to drive demand Industry: Coal Source: US Energy Information Administration, 2006 Review: U.S. Coal Supply and
Demand |
 22 RECENT COAL PRICES Industry: Coal $0 $25 $50 $75 $100 2002 2003 2004 2005 2006 U.S. Met Coal Thermal Coal Source: US Energy Information Administration, 2006 Review: U.S. Coal Supply and
Demand. |
 23 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 24 79% 21% North America Asia-Pacific 2006 CLIFFS’ SALES BY SEGMENT Cliffs North American Iron Ore |
 25 • Largest supplier of iron ore pellets to the integrated steel industry in North America • Cliffs led the consolidation of the North American iron ore industry and obtained a larger share of the market CLIFFS NORTH AMERICA Cliffs North American Iron Ore |
 26 *Includes minority interest. (Million Gross Tons) CLIFFS’ PRODUCTION 7.8 14.7 18.1 21.7 27 28.3 17.6 13.2 12.2 12.7 8.9 5.3 5.2 7.7 0 5 10 15 20 25 30 35 40 45 2001 2002 2003 2004 2005* 2006* Cliffs' NA Equity Production NA Non-Equity Production AP Production Cliffs North American Iron Ore |
 27 NORTH AMERICAN PELLET PRODUCERS: 2006 4% 11% 15% 24% 46% U.S. Steel Quebec Cartier Mining Company (Arcelor Mittal) Minorca (Arcelor Mittal) Cliffs Iron Ore Company of Canada (Rio Tinto) Cliffs North American Iron Ore |
 28 CLIFFS NORTH AMERICAN PELLET CUSTOMERS: 2006 Severstal 13% Algoma 20% Mittal Steel USA 44% WCI 9% Other 9% Stelco 5% Cliffs North American Iron Ore |
 29 CLIFFS NORTH AMERICAN IRON ORE SHIPPING ROUTES Cliffs North American Iron Ore |
 30 • Repair and restart of idled Northshore Mining Furnace No. 5 commencing in 2008 – Expected to increase 2008 capacity by 800,000 tons – Augments Cliffs’ ability to satisfy customers’ current and future requirements according to long-term contracts – Helps replace tonnage from Wabush Mine – Cost: $39 million NORTHSHORE EXPANSION Cliffs North American Iron Ore |
 31 • Virtually 100% of current annual pellet capacity is committed under long-term contracts • Weighted average term of North American contracts is seven years • Annual price adjustments based on a variety of factors including: – International benchmark pellet price – Various PPI indices - Industrial Commodities Less Fuel - Fuel and Related Products - Cold Rolled Steel - Hot Rolled Steel - All Commodities - Fuel and Power – Hot band steel prices CLIFFS PELLET CONTRACT PRICING Cliffs North American Iron Ore |
 32 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 33 NORTH AMERICAN COAL: PINNOAK RESOURCES STRATEGIC ACQUISITION • Domestic producer of high-quality, low-volatility metallurgical coal – 80% slated for international markets • Three underground mines – Pinnacle and Green Ridge in West Virginia – Oak Grove in Alabama Cliffs North American Coal |
 34 • Capacity in excess of seven million tons annually • Anticipated production – Second-half 2007: two million tons – 2008: five million tons • Reserves: 140 million tons • Price: $450 million cash, $160 million debt – $112.5 million of cash payment deferred until end of 2009 NORTH AMERICAN COAL: PINNOAK RESOURCES Cliffs North American Coal |
 35 • Contract pricing – Currently, one-year contracts negotiated annually • Export contracts reset April to April • Domestic contracts reset by calendar year – Potential opportunity to transition consumers into long-term contracts NORTH AMERICAN COAL: PINNOAK RESOURCES Cliffs North American Coal |
 36 NORTH AMERICAN MET COAL PRODUCERS PinnOak provides Cliffs with a strong industry position and platform for further growth CONSOL 7% Jim Walter Resources 11% Peabody Energy 10% United Coal Corp. 6% Massey Energy 18% Alpha Natural Resources 21% Arch Coal 4% Cliffs 9% Foundation Coal Holdings 3% Sun Coke 2% Others 9% Cliffs North American Coal |
 37 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 38 Cliffs Asia-Pacific CLIFFS ASIA-PACIFIC Portman: Cockatoo Island Perth Esperance Portman: Koolyanobbing Sonoma Project Sydney Abbot Point Terminal |
 39 • Provided immediate presence in Australia and Asia • Access to fastest growing steel markets and relationships where Cliffs’ iron ore competencies can be levered • Capacity increased from 6MM to 8MM tonnes in 2006 • Portman has 88 million tonnes of proved reserves and an active exploration program • Production contracted for next three years • Customers in China (80%) and Japan (20%) • Pricing correlates with international negotiated settlements for fines and lump ore PORTMAN LIMITED Cliffs Asia-Pacific |
 40 • Partnered with QCoal for a 45% interest in the Sonoma Project • At the northern limit of Queensland’s Bowen Basin coalfields • Initial production beginning in late 2007 – Approximately half coking coal and half thermal coal • Production ramping to between three million and four million tonnes by end of 2008 • JORC Resource estimate of 107 million tonnes • Moves by rail to the Abbot Point Bulk Coal Terminal for export • Cliffs’ investment ~ $109 million SONOMA COAL PROJECT Cliffs Asia-Pacific |
 41 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 42 • Cliffs purchased 100% of the shares of Centennial Asset Mining Fund LLC, an affiliate of MMX Mineração e Metálicos SA, whereby it acquired 30% of the Amapá Project. CLIFFS LATIN AMERICA: AMAPÁ PROJECT Cliffs Latin America |
 43 • Opened regional office in Rio de Janeiro February 2007 • Active business development program evaluating numerous deposits • Amapá provides an attractive opportunity in Latin America and, over time, is anticipated to serve as a platform for further expanding Cliffs’ presence in the region CLIFFS LATIN AMERICA Cliffs Latin America |
 44 • Acquisition of 30% interest in Brazilian iron ore project Amapá • Includes: iron ore deposits, 192 kilometer railway, 71 hectares of real estate • Estimated annual production 2007: 0.4 Mt 2008: 4.8 Mt 2009 and beyond: 6.5 Mt • Long-term supply agreement with Bahrain in place, oversight by Cliffs Rio de Janeiro office • Cliffs’ 2007 investment: $240 million – Initial investment $133 million – Approximately $27 million of capital expenditures to date – $84 million of construction expenditures financed with project-level debt Note: Data as of March 2006; Source: MMX, NI 43-101 reports AMAPÁ PROJECT Cliffs Latin America |
 45 • Measured/Indicated: 73.6 Mt • Inferred: 104.5 Mt • Conceptual: 150.0 Mt – Re-certification of resources and reserves planned for the end of 2007 Note: Data as of March 2006; Source: MMX, NI 43-101 reports AMAPÁ GEOLOGICAL RESOURCES AND RESERVES Cliffs Latin America |
 46 AGENDA Cliffs Latin America 41 Cliffs North American Coal 32 Summary 46 Cliffs Asia-Pacific 37 Cliffs North American Iron Ore 23 Industry: Iron Ore and Coal 13 Strategy Overview and Transformation of Cliffs 3 |
 47 FOCUSED ON SHAREHOLDER VALUE • Repurchased 3.2 million (split-adjusted) shares in 2006, using $121 million in cash – 1.3 million shares remaining under authorization as of June 30, 2006 • 25% increase in common share dividend • CLF stock price up 112% from September 2006 to September 2007 Summary |
 48 Cleveland-Cliffs’ Stock Price: Sept. 2002 – Sept 2007 (Adjusted for stock splits) Summary CLIFFS’ STOCK PERFORMANCE $0 $20 $40 $60 $80 $100 |
 49 • Unsecured $800MM agreement includes: – $200MM term loan – $600MM revolver – $200MM accordion feature for future expansion – Enables Cliffs to maintain requisite liquidity to seize opportunities – Supports Cliffs’ continuing objectives of optimizing capital structure, reducing the cost of capital, and creating shareholder value – Debt to total capitalization target of 30-40% – Debt to EBITDA target of less than 2.0X Summary NEW FIVE-YEAR CREDIT AGREEMENT |
 50 Summary 2006 FINANCIAL HIGHLIGHTS Full-Year Results: Change 2005 2006 10.4% $ 1,740 $ 1,922 Revenue 2.5% $ 357 $ 366 Operating Income 0.7% $ 278 $ 280 Net Income 2.2% 27.2 27.8 Sales Tonnage: (Gross Tons) 58% $ 0.30 $ 0.475 Cash Dividends Paid Per Common Share (In Millions Except Per Share) 0% 0% Debt to Total Capitalization At Dec. 31, 2005 At Dec. 31, 2006 |
 51 YEAR-TO-DATE FINANCIAL HIGHLIGHTS Summary (In Millions, Except Per Share) 4% $ 2.20 $ 2.29 Diluted EPS First-Half Ended: Change June 30, 2006 June 30, 2007 10% $ 793 $ 873 Revenue (1%) $ 121 $ 119 Net Income 8% 11.1 12.0 Sales Tonnage (Gross Tons) 0% 10% Debt to Total Capitalization At June 30, 2006 At June 30, 2007 |
 52 VISION OF CLIFFS - 2015 Growth and Diversification Shareholder Returns Global Execution Operational Excellence Summary Growth and Diversification • Revenues Doubled • 50% of Revenues From Outside of North America • Up to 25% of Revenues From Outside of Iron Ore Operational Excellence • MSHA Frequency Rate Below 2.00 • Net Savings of $5.00 Per Ton of Iron Ore Production Global Execution Metrics • Global Corporate Development • Globally Scalable Operations • Significant Share of Management From Outside United States Shareholder Returns • Average Annual Return of 12% • Balanced Shareholder Returns –Dividends –Share Repurchases –Capital Appreciation COMBINE INTO OUR VISION OF A
NEW CLIFFS |
 Laurie Brlas Senior Vice President CFO and Treasurer Steve Baisden Director, Investor Relations and Corporate Communications KeyBanc Capital Markets Basic Materials and Packaging Conference Boston, MA September 19, 2007 A WORLD LEADER IN IRON ORE AND METALLURGICAL COAL |