Cleveland-Cliffs Minnesota Land Development has completed the acquisition of landholdings in Itasca County, west of Nashwauk, Minnesota, US, from Glacier Park Iron Ore Properties (GPIOP).

The transaction comprises interests, including a combination of undivided and whole fee interests, as well as mineral and surface leases, within the Biwabik Iron Formation.

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The acquired acreage covers around 553 acres, while the acreage being leased is approximately 3,215 acres.

Cleveland-Cliffs chairman, president, and CEO Lourenco Goncalves said: “We are enthused about the acquisition of this property, which came into play after Chippewa failed to follow through on its obligation to obtain financing and a bankruptcy exit for Mesabi Metallics by 31 October.”

The company has three separate mining and pelletising operations throughout Minnesota.

“The plant will be developed at an estimated cost of $700m and have the nominal capacity to produce 1.6 million metric tonnes of HBI per annum.”

Cliffs intends to leverage the acquired landholdings to develop a sustainable plan for the site, which could be considered to replace other iron ore resources when they deplete.

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The acquisition includes parcels that were previously leased by GPIOP to Mesabi Metallics Company.

Cliffs serves the North American steel industry by supplying iron ore pellets from its mines and pellet plants in Michigan and Minnesota.

In addition, the company operates an iron ore mining complex in Western Australia.

Construction of the company’s hot briquetted iron (HBI) production plant in Toledo, Ohio, is expected to begin early next year, while production is slated for mid-2020.

The plant will be developed at an estimated cost of $700m and have the nominal capacity to produce 1.6 million metric tonnes of HBI per annum.