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EXHIBIT 99.1
MESABI TRUST PRESS RELEASE
New York, New York
January 9, 2001
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 intends to reduce iron ore pellet production at Northshore
by approximately 700,000 tons in 2001. The Northshore facility has the
capacity to produce 4.3 Million tons annually, and almost that amount was
produced in 2000. Cleveland-Cliffs said that one of the pellet production
furnaces at Northshore would be shut down for an estimated 9-month period
beginning this week. Cleveland-Cliffs cited the impact on its customers of
perceived unfairly traded imports and the general deterioration in overall
steel demand in North America as reasons for the production cutback. No
forecast of the volume of shipments of iron ore pellets for the coming year
was provided.
Royalties paid to the Trust are dependent on the volume of shipments of iron
ore pellets for the quarter and the year to date, the pricing of the iron ore
product sales and the percentage of iron ore pellet shipments from Mesabi
Trust lands rather than from other lands. The volume of shipments of iron ore
pellets by Northshore and the 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.
This news release contains certain forward-looking statements with respect to
iron ore production at Northshore in 2001, which statements are intended to
be made under the safe harbor protections of the Private Securities
Litigation Reform Act of 1995. Actual production and shipments of iron ore
pellets could differ materially from current expectations due to inherent
risks such as lower demand for steel, iron ore, higher steel imports,
processing difficulties or other factors. Although the Mesabi Trustees
believe that its 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
Bankers Trust Company
212-250-6519
