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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): August 11, 1999
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MESABI TRUST
(Exact name of registrant as specified in its charter)
New York 1-4488 13-6022277
(State of or other juris- (Commission (I.R.S. Employer
diction of incorporation) File Number) Identification No.)
c/o Bankers Trust Company
Corporate Trust and Agency Group
P. O. Box 318, Church Street Station, New York, New York 10008-0318
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (212) 250-6519
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ITEM 5. OTHER EVENTS.
The Mesabi Trustees report that a press release dated August 11, 1999
was made publicly available on August 11, 1999. A copy of the press
release is filed herewith as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
a. FINANCIAL STATEMENTS OF BUSINESS ACQUIRED.
Not applicable.
b. PRO FORMA FINANCIAL INFORMATION.
Not applicable.
c. EXHIBITS.
99.1 Press Release dated August 11, 1999
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SIGNATURES
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 thereunto duly authorized.
MESABI TRUST
Dated: August 11, 1999 By: /s/ Ednora Linares
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Ednora Linares
Assistant Vice President
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INDEX TO EXHIBITS
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<CAPTION>
Item Method of Filing
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<S> <C>
99.1 Press Release dated August 11, 1999. Filed electronically
herewith.
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EXHIBIT 99.1
MESABI TRUST
PRESS RELEASE
New York, New York
August 11, 1999
The Trustees of Mesabi Trust (NYSE: MSB) have learned through a public
announcement by Cleveland-Cliffs Inc., the corporate parent of Northshore
Mining Company, which is the lessee/operator of Mesabi Trust lands, that
Cleveland-Cliffs will implement cutbacks in production at Cliffs-managed
mines in order to reduce iron ore pellet output for the year by approximately
2.7 million tons. This production cutback will include anticipated reductions
of between 500,000 and 600,000 tons at the Northshore plant which produces
iron ore pellets from iron ore mined from the Mesabi Trust lands, representing
an annual iron ore pellet reduction of approximately 14% compared to 1998.
Northshore shut down its smallest pelletizing furnace on July 22 and it is
expected to be closed through November 24. Northshore tentatively plans to
shut down the entire plant from October 30 to November 24. Cleveland-Cliffs
also announced that it revised its overall sales forecast for the year for
iron ore pellets from all Cliffs-operated facilities to 9 million tons versus
record sales of 12.1 million tons in 1998. This would be the lowest level of
sales since Cleveland-Cliffs acquired the Northshore mine in 1994.
These production cutbacks and anticipated sales reductions indicate to the
Mesabi Trustees that pellet shipments and pellet pricing will likely decrease
during the current quarter and during the second half of the current year,
which would accordingly result in lower distributions to Unitholders in
comparison to similar periods in prior years.
The volume of shipments of iron ore pellets by Northshore and pellet sales
prices vary from quarter to quarter and year to year based on a number of
factors including weather conditions on the Great Lakes, the requested
delivery schedules of customers and general economic conditions in the iron
ore industry. The resulting royalties to the Trust are dependent on the
volume of shipments for the quarter and the year to date, the pricing of the
iron ore product sales, and the percentage of iron ore shipments which is
from Mesabi Trust lands rather than other lands. Currently, unusually high
levels of steel imports have significantly reduced demand for domestic steel
production.
This release contains forward-looking statements regarding iron ore pellet
sales and production volume, as well as resulting distributions to
Unitholders of Mesabi Trust, all of which could differ significantly from
current expectations due to inherent risks such as lower demand for steel and
iron ore, higher steel imports, processing difficulties and other factors.
Although the Mesabi Trustees believe that the forward-looking statements are
based on reasonable assumptions, such statements are subject to risks and
uncertainties, which could cause actual results to differ materially.
CONTACT: Daniel Chipko
c/o Bankers Trust Company
212-250-6519
