Slide 1: Cliffs Natural Resources Investor Presentation January 2009
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources Investor Presentation January 2009 Exhibit 99(a)
Slide 2: Safe Harbor Statement
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 1 “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation includes predictive information that is intended to be made as “forward-looking” within the safe harbor protections of the Private Securities L
Slide 3: Cliffs Natural Resources Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources Overview
Slide 4: Overview of Cliffs Natural Resources Inc.
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 3 Overview of Cliffs Natural Resources Inc. Cliffs Natural Resources (NYSE: CLF) is an international mining and natural resources company. We are the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump
Slide 5: Cliffs' Strategic Imperatives
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 4 Scale Through Diversification Shareholder Returns Global Execution Operational Excellence Cliffs’ Strategic Imperatives Building Scale Through Diversification Multiple Revenue Streams Product Diversification Geographic Presence Operational Exce
Slide 6: Cliffs' Strategy: Geographic and Mineral Diversification
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 5 NORTH AMERICA LATIN AMERICA (BRAZIL) NORTH AMERICAN MET COAL IRON ORE SEABORNE MET COAL Cliffs’ Strategy: Geographic and Mineral Diversification GEOGRAPHIES MINERALS • MANGANESE • MOLYBDENUM • FERRO CHROME OTHER LATIN AMERICAN COUNTRIES ASIA-PA
Slide 7: Cliffs' Strategy
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 6 Cliffs’ Strategy Maintain the core: North American Iron Ore Expand globally and diversify products - North American Coal - Cliffs Asia-Pacific Business Unit - Cliffs Latin American Business Unit Consistently exhibit leadership in sustainable de
Slide 8: Cliffs Natural Resources Business Segments and Other Ventures
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources Business Segments and Other Ventures
Slide 9: North American Iron Ore Segment
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 8 Source: Company data Ownership is composed of Quebec Catier Mining Company 11% and Minorca 4% Business Overview North America’s largest supplier of iron ore pellets Virtually 100% of production is committed under long-term contracts Customer ba
Slide 10: North American Iron Ore Shipping Routes
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 9 North American Iron Ore Shipping Routes
Slide 11: North American Coal Segment Business Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 10 Source: Company data Business Overview Domestic producer of high-quality, low-volatility metallurgical coal with significant production sold to international markets Three underground mines: Pinnacle Complex in West Virginia, Oak Grove in Alab
Slide 12: Asia-Pacific Iron Ore Segment Business Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 11 Source: Company data Business Overview Comprised of wholly owned Portman Limited, an iron ore mining company located in Western Australia: – Koolyanobbing mine (100% owned) – Cockatoo Island Joint Venture (50% owned) Construction of a new seaw
Slide 13: Amapá Project Business Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 12 Reserves Position Measured/Indicated 73.6 Mt Inferred 104.5 Mt Conceptual 150.0 Mt Source: Company data Business Overview 30% owned by Cliffs 70% owned by Anglo-American Consists of a significant iron ore deposit, a 192-kilometer railway conne
Slide 14: Sonoma Project Business Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 13 Source: Company data Business Overview 45% economic interest Located in Queensland 2008E sales volume: 2.1MM tonnes 2009E production: 3-4MM tonnes ~27 million tonnes of reserves Mix of hard coking and thermal coal Supply agreements in place wi
Slide 15: Sales Margin by Business Segment
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 69% 26% 40% 11% 37% 14 Sales Margin by Business Segment 2008 Estimate* 5% 2009 Estimate* 12% *2008 Sales Margin Estimate for NA Coal is a Loss Transition demonstrates decision to pursue scale is the right strategy particularly in the current envi
Slide 16: Cliffs Natural Resources Strong Long-Term Steel Fundamentals
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources Strong Long-Term Steel Fundamentals
Slide 17: Steel Is a Large and Vital Global Business
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 16 BRIC economic growth is substantial and appears inevitable Brazil India Steel Is a Large and Vital Global Business UK 1200 1000 Purchasing Power Parity GDP/Capita Germany Canada U.S . Australia Japan Korea Russia China Overall, China’s steel c
Slide 18: Strong Coal Pricing Trends
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 17 Strong Coal Pricing Trends 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008E Note: CAPP steam coal index – CSX, 12,500 Btu, 1# Rail Source: Bloomberg, Platts Met coal prices ($/ tonne ) Steam coal prices ($/ton) 1990 1992 1994 1996 1998 2000
Slide 19: Iron Ore Trends Recently Strong, Though Expected to Be Pressured in 2009
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 18 Iron Ore Trends Recently Strong, Though Expected to Be Pressured in 2009 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Pellets Lump Fines Iron ore prices ($/tonne based on 64% Iron Content) Source: Cliffs and Tex Reports $ 141 $129 $93 86%
Slide 20: Long-Term Steel Demand Will Drive Our Business
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 19 Long-Term Steel Demand Will Drive Our Business Global steel demand (millions of tonnes ) 1,000 1,500 2,000 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010E 2015E Post-World War II reconstruction and Japanese industrialization
Slide 21: U.S. Steel Industry Is Particularly Well-Positioned
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 20 U.S. Steel Industry Is Particularly Well-Positioned Source: FactSet, Metal Strategies, AME Dollar vs. Euro ($/ € ) Market share of top 3 U.S. producers (%) 0.50 0.75 1.00 1.25 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 U.S. steel consum
Slide 22: Production Cuts Announced by Global Steel Firms
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 21 Production Cuts Announced by Global Steel Firms Output Cuts Are Faster and Deeper Versus Prior Cycles Jan. 09 Dec. 08 Nov. 08 Oct. 08 ArcelorMittal Cutting liquid steel production by 7.7% Cutting output by 30% AK Steel Idled operations in Ohio
Slide 23: Current Business Segment Production
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 22 Current Business Segment Production ¹ Current Annualized Business Run Rate North American Iron Ore 22MM total long tons 15MM equity tons North American Coal 3.5MM short tons Asia-Pacific Iron Ore 7.5MM tonnes Sonoma Project 3MM to 4MM total to
Slide 24: Cliffs' Strengthening Liquidity Position
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP 23 Cliffs’ Strengthening Liquidity Position Dec. 31, 2008¹ Dec. 31, 2007 Cash and Cash Equivalents $180.0 $157.1 Borrowing Capacity Under Existing Revolving Credit Facility $600.0 $343.8 Total Available Liquidity $780.0 $500.9 Cash From Operation
Slide 25: Cliffs Natural Resources
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources Investor Presentation January 2009