Mesabi Metallics says they secured major victory in court over Cleveland-Cliffs

Mesabi Metallics said that they have won a major victory in court over Cleveland-Cliffs.

According to a statement from Mesabi, a federal court in Delaware confirmed there is sufficient evidence that Cleveland-Cliffs caused Mesabi antitrust injury, and rejected Cliffs’ request to dismiss Mesabi’s antitrust claims on summary judgment.

In the antitrust suit, Mesabi asserts that its inability to complete the project is a result of Cliffs’ unlawful conduct.

In its opinion Thursday, the court ruled that “there is sufficient evidence that permits a reasonable juror to conclude that Cliffs’ conduct was anticompetitive. Acquiring key mining property and entering into a long-term exclusive supply agreement with one of the largest customers in the region, coupled with pressuring critical contractors working on Mesabi’s project to terminate their relationships with Mesabi, could substantially foreclose Mesabi from the market and exclude competition.”

In a separate motion for summary judgment filed by Mesabi, the court ruled in Mesabi’s favor, finding that Cliffs is a monopolist, according to Mesabi.

The court further rejected Cliffs’ request to exclude Mesabi’s experts’ opinions, which calculated the damages caused to Mesabi by Cliffs’ anti-competitive conduct at about $1.9 billion. The final damages amount will be determined by jury after trial.

The two companies have been battling over the Nashwauk site for years, when it comes to mineral rights and land.

WDIO has reached out to Cleveland-Cliffs for comment.

Mesabi Metallics is constructing an iron ore mine and 7 million ton per year pellet project located on over 16,000 acres of land in Nashwauk. The company controls 1.3 billion tons of iron ore resources.

The pelletizing facility is being constructed and is on track to commence operations in the first quarter of 2026. Mesabi Metallics has already invested more than $1.7 billion in this project and is further investing about $650 million to complete the project. The total investment of $2.4 billion will be one of the largest private investments ever made in Minnesota.