Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES

RELATED PARTIES

3 Months Ended

Mar. 31, 2021

NOTE 15 - RELATED PARTIES

We have certain co-owned joint ventures with companies from the steel and mining industries, including integrated steel companies, their subsidiaries and other downstream users of steel and iron ore products.

Hibbing is a co-owned joint venture in which we own 85.3% and U.S. Steel owns 14.7% as of March 31, 2021. As a result of the AM USA Transaction, we acquired an additional 62.3% ownership stake in the Hibbing mine and became the majority owner and mine manager. Prior to the AM USA Transaction, ArcelorMittal was a related party due to its ownership interest in Hibbing. As such, for the three months ended March 31, 2020, certain long-term contracts with ArcelorMittal resulted in Revenues from related parties. As of March 31, 2020, we owned 23% of Hibbing.

Revenues from related parties were as follows:


		(In Millions)
	Three Months Ended March 31,
		2021			2020
Revenue from related parties		$	77		$	11
Revenues		$	4,049		$	359
Related party revenues as a percent of Revenues		2		%	3		%
Purchases from related parties		$	27		$	3

The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:


	(In Millions)
Balance Sheet Location of Assets (Liabilities)	March 31, 2021		December 31, 2020
Accounts receivable, net	$	30	$	2

Accounts payable	(9)		(6)