NASHWAUK — An antitrust case pursued by Mesabi Metallics against Cleveland-Cliffs will move to a trial after an order by the U.S. District Court in Delaware.
Mesabi Metallics announced the decision in a news release Wednesday, Feb. 19.
The case involves allegations that Cleveland-Cliffs unlawfully impeded Mesabi Metallics in its efforts to build an iron ore mine, beneficiation plant and pelletizing facility in Nashwauk.
The court also denied Cleveland-Cliffs' request for permission to appeal a previous summary judgment, which found sufficient evidence for a jury to consider the claims of harm to Mesabi. The ruling leaves in place a lower court ruling that Cliffs was a monopolist in the market for blast furnace pellets in the Great Lakes region during the time covered in the suit.
The court’s opinion cites evidence that Cliffs interfered with key Mesabi vendors, which harmed the company’s ability to secure financing and complete the project. The opinion also notes Cliffs’ property acquisition has “potential anti-competitive effects” like diminishing the project’s value, increasing operating costs and making it difficult for Mesabi to attract investors.
According to the news release, Mesabi’s experts estimated the damages to the company amounted to about $1.9 billion. The final damages would be determined by the jury after a trial if Cleveland-Cliffs is found liable.
Mesabi Metallics is currently constructing an iron ore mine in Nashwauk, which it says is on track to begin operating early next year. The mine would support a 7 million-ton-per-year beneficiation plant and the same number of tons in pellets, according to the company.
