There are many ways to generate value. Improving cost and operational efficiencies, developing innovative technologies, and increasing shareholder returns are but a few. When two organizations have the same goals, and the right fit, such alliances can have a durable positive impact that builds value for both parties. Sometimes the best option is 100% ownership; at others, a partnership is the best choice.
Since its recent strategic redirection, some of the ways Cliffs has been building its portfolio are by strengthening its core iron ore mining and processing business in North America, expanding and diversifying its product mix, and supporting the development of alternative technologies. We believe this is the right path for value creation in the years ahead.
Three examples of how we have put this vision to work recently are our high-potential partnerships in the Portman, Amapá, and Sonoma operations. With these alliances, Cliffs has gained not only good operational synergies, but also a growing international presence. Our partners, in turn, benefit from Cliffs' unique technological know-how and deep operational expertise.
Always an innovator in iron-ore mining and processing, Cliffs remains active in the development of technologies for alternative metallic products. Having built and operated a pilot nugget plant utilizing Kobe Steel’s ITmk3 technology, we see the technology’s significant potential and the opportunity to further diversify our customer mix with the addition of electric furnace operators. The company has an alliance with Kobe Steel to utilize its ITmk3 process in the United States, Canada, Australia, and Brazil with plans to build an iron nugget facility at one of Cliffs’ U.S. mining operations.
That’s what we call "value generation".
