Cliffs Natural Resources Inc. announced it has reached a negotiated settlement with ArcelorMittal USA Inc., and related parties, with respect to the companies' previously disclosed arbitrations and litigation regarding, among other matters, price reopener entitlements for 2009 and 2010 and pellet nominations for 2010 and 2011.

Under the terms of the settlement, the two companies have agreed to specific pricing levels for 2009 and 2010 pellet sales and related sales volumes. As a result, Cliffs will receive a cash payment of approximately $250 - $270 million as a pricing "true-up" for pellet volumes delivered to certain ArcelorMittal steelmaking facilities in North America during both years.

Also, as part of the settlement, Cliffs and ArcelorMittal have agreed to replace the previous pricing mechanism with a world market-based pricing mechanism beginning in 2011 and through the remainder of the contract for one of the iron ore supply agreements that Cliffs has with ArcelorMittal. As a result of the new pricing feature, going forward, the parties also agreed to forgo future price reopeners.

Cliffs said based on the settlement it anticipates providing an update to its previously disclosed 2011 North American Iron Ore business segment outlook when the Company reports first quarter results on April 28, 2011.

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