NATURE OF BUSINESS AND ORGANIZATION	3 Months Ended
Apr. 30, 2020
NATURE OF BUSINESS AND ORGANIZATION
NATURE OF BUSINESS AND ORGANIZATION	Note 1. The financial statements and notes to financial statements included herein have been prepared without audit (except for the balance sheet at January 31, 2020) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Trustees, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the results of operations for the three months ended April 30, 2020 and 2019, (b) the financial position at April 30, 2020 and (c) the cash flows for the three months ended April 30, 2020 and 2019, have been made. For further information, refer to the financial statements and footnotes included in Mesabi Trust’s Annual Report on Form 10-K for the year ended January 31, 2020. The Trust’s royalties have been and may continue to be adversely affected by the coronavirus (COVID-19) outbreak. The spread of COVID-19 has led to the disruption of the business operations of Cliffs and its wholly-owned subsidiary, Northshore, upon which the Trust is dependent for royalties. Cliffs has indicated that the COVID-19 pandemic will adversely impact its sales of steel and customized iron ore pellets. In particular, the automotive industry, which Cliffs relies on for a significant amount of its sales, has been significantly disrupted. As previously announced, Cliffs has temporarily shut down construction activities at its HBI production plant in Toledo, Ohio in March 2020, temporarily idled certain steel facilities in March and April 2020 and idled its Northshore mine in mid-April 2020. Although the Northshore mine is idled, Cliffs has continued to ship limited amounts of stockpiled iron ore products from Northshore for which the Trust receives a royalty. The Trust is unable to predict if and to what degree these shipments will continue. In addition, although Cliffs has indicated that its expects its Northshore mine to restart in August 2020, it noted that it cannot predict when it will be able to restart construction of its HBI production plant, when its production facilities and/or mines will be able to resume operations or whether any other production facilities and/or mines will experience disruptions in the future. On December 9, 2019, the Trustees of Mesabi Trust announced that the Trust initiated arbitration against Northshore, the lessee/operator of the leased lands and its parent, Cliffs. The arbitration proceeding was commenced with the American Arbitration Association. The Trust asserts claims concerning the calculation of royalties related to the production, shipment and sale of iron ore, including DR-grade pellets. Based on information currently available to the Trust, the Trust seeks an award of damages, along with specific performance and declaratory relief. The arbitration is in its early stages. gg

Note 1. The financial statements and notes to financial statements included herein have been prepared without audit (except for the balance sheet at January 31, 2020) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Trustees, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the results of operations for the three months ended April 30, 2020 and 2019, (b) the financial position at April 30, 2020 and (c) the cash flows for the three months ended April 30, 2020 and 2019, have been made. For further information, refer to the financial statements and footnotes included in Mesabi Trust’s Annual Report on Form 10-K for the year ended January 31, 2020.

The Trust’s royalties have been and may continue to be adversely affected by the coronavirus (COVID-19) outbreak. The spread of COVID-19 has led to the disruption of the business operations of Cliffs and its wholly-owned subsidiary, Northshore, upon which the Trust is dependent for royalties. Cliffs has indicated that the COVID-19 pandemic will adversely impact its sales of steel and customized iron ore pellets. In particular, the automotive industry, which Cliffs relies on for a significant amount of its sales, has been significantly disrupted. As previously announced, Cliffs has temporarily shut down construction activities at its HBI production plant in Toledo, Ohio in March 2020, temporarily idled certain steel facilities in March and April 2020 and idled its Northshore mine in mid-April 2020. Although the Northshore mine is idled, Cliffs has continued to ship limited amounts of stockpiled iron ore products from Northshore for which the Trust receives a royalty. The Trust is unable to predict if and to what degree these shipments will continue. In addition, although Cliffs has indicated that its expects its Northshore mine to restart in August 2020, it noted that it cannot predict when it will be able to restart construction of its HBI production plant, when its production facilities and/or mines will be able to resume operations or whether any other production facilities and/or mines will experience disruptions in the future.

On December 9, 2019, the Trustees of Mesabi Trust announced that the Trust initiated arbitration against Northshore, the lessee/operator of the leased lands and its parent, Cliffs. The arbitration proceeding was commenced with the American Arbitration Association. The Trust asserts claims concerning the calculation of royalties related to the production, shipment and sale of iron ore, including DR-grade pellets. Based on information currently available to the Trust, the Trust seeks an award of damages, along with specific performance and declaratory relief. The arbitration is in its early stages.