8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 14, 2007

CLEVELAND-CLIFFS INC

(Exact Name of Registrant as Specified in Its Charter)

OHIO	1-8944	34-1464672
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1100 Superior Avenue, Cleveland, Ohio		44114-2589
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (216-694-5700)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01  Regulation FD Disclosure.

On September 19, 2007, Laurie Brlas, Senior Vice President—Chief Financial Officer and Treasurer, and Steve Baisden, Director, Investor Relations and Corporate Communications, made a presentation at the KeyBanc Capital Markets 2007 Basic Materials and Packaging Conference in Boston, Massachusetts.

The presentation is contained in Item 9.01 as exhibit 99(a) on this Current Form 8-K and is incorporated into this Item 7.01 by reference. The information on this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or incorporated by reference in any filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 8.01.  Other Events.

Cleveland-Cliffs Inc published a news release dated September 14, 2007 as follows:

Cleveland-Cliffs to Present at KeyBanc Capital Markets

2007 Basic Materials & Packaging Conference Sept. 19, 2007

CLEVELAND—Sept. 14, 2007—Cleveland-Cliffs Inc (NYSE: CLF) today announced that Senior Vice President—Chief Financial Officer and Treasurer Laurie Brlas and Director, Investor Relations and Corporate Communications Steven R. Baisden are scheduled to present at the KeyBanc Capital Markets 2007 Basic Materials & Packaging Conference in Boston, Mass., on Wednesday, September 19, 2007.

Management will highlight Cliffs’ transformation into an international mining entity and provide strategic and operational overviews, including a discussion on recently announced acquisitions and their fit with the Company’s ongoing product diversification and global expansion initiatives. The presentation will be made available on Cliffs’ website, http://www.cleveland-cliffs.com , prior to the presentation.

To be added to the Company’s e-mail distribution list, please click on the link below:

http://www.cpg-llc.com/clearsite/clf/emailoptin.html

Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is an international mining company, the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steelmaking industry. The Company operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and three coking coal mines in West Virginia and Alabama. Cliffs also owns 80 percent of Portman Limited, a large iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. In addition, the Company has a 30 percent interest in the Amapá Project, a Brazilian iron ore project, and a 45 percent economic interest in the Sonoma Project, an Australian coking and thermal coal project.

News releases and other information on the Company are available on the Internet at:

http://www.cleveland-cliffs.com

SOURCE: Cleveland-Cliffs Inc

ITEM 9.01  Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Exhibit
99(a)	Presentation by Laurie Brlas, Senior Vice President – CFO and Treasurer, and Steve Baisden, Director, Investor Relations and Corporate Communications of Cleveland-Cliffs Inc at the KeyBanc Capital Markets 2007 Basic Materials and Packaging Conference on September 19, 2007	Filed Herewith

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

CLEVELAND-CLIFFS INC
By:	/s/ George W. Hawk, Jr.
Name:	George W. Hawk, Jr.
Title:	General Counsel and Secretary

Dated: September 19, 2007

INDEX TO EXHIBITS

Exhibit Number	Exhibit
99(a)	Presentation by Laurie Brlas, Senior Vice President – CFO and Treasurer, and Steve Baisden, Director, Investor Relations and Corporate Communications of Cleveland-Cliffs Inc at the KeyBanc Capital Markets 2007 Basic Materials and Packaging Conference on September 19, 2007	Filed Herewith

EX-99.(A)

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