Quarterly report pursuant to Section 13 or 15(d)

Related Parties

v2.4.0.6
Related Parties
 3 Months Ended
Mar. 31, 2012
Related Parties [Abstract]  
Related Parties

NOTE 17 – RELATED PARTIES

We co-own three of our five U.S. iron ore mines and one of our two Eastern Canadian iron ore mines with various joint venture partners that are integrated steel producers or their subsidiaries. We are the manager of each of the mines we co-own and rely on our joint venture partners to make their required capital contributions and to pay for their share of the iron ore pellets that we produce. The joint venture partners are also our customers. The following is a summary of the mine ownership of these iron ore mines at March 31, 2012:

 

Mine

    Cliffs Natural
Resources 		     ArcelorMittal      U.S. Steel
Canada 		     WISCO  

Empire

      79.0         21.0         -           -     

Tilden

      85.0         -           15.0         -     

Hibbing

      23.0         62.3         14.7         -     

Bloom Lake

      75.0         -           -           25.0   

ArcelorMittal has a unilateral right to put its interest in the Empire Mine to us, but has not exercised this right to date.

 

Product revenues to related parties were as follows:

 

     (In Millions)  
     Three Months Ended
March 31, 		 
     2012     2011  

Product revenues to related parties

    $ 331.9      $ 313.6   

Total product revenues

      1,200.9        1,133.0   

Related party product revenue as a percent of total product revenue

      27.6 %      27.7 % 

Amounts due from related parties recorded in Accounts receivable and Derivative assets, including customer supply agreements and provisional pricing arrangements, were $129.2 million and $180.4 million at March 31, 2012 and December 31, 2011, respectively. Amounts due to related parties recorded in Other current liabilities, including provisional pricing arrangements and liabilities to minority parties, were $31.8 million and $43.0 million at March 31, 2012 and December 31, 2011, respectively.