Cliffs Natural Resources Inc. (NYSE:CLF) is the largest producer of iron ore pellets for the steel industry in North America. Initially, Cliffs Natural Resources mostly managed iron mines for integrated steel companies; however, the company has turned its focus focused on acquiring direct ownership of iron mines, functioning more as a direct merchant of the resource. The company earned $2.3 billion in revenue and $204 million in net income in 2009.^[1]

Of the eleven iron ore mines in operation across North America, Cliffs Natural Resources facilitates six, representing 46% of North American iron ore pellet production and allowing Cliffs Natural Resources to claim the number one market share position in North America. Two trends have depressed domestic demand for steel are declining new home construction due to the collapse of the U.S. Housing Market as well as troubles with American car makers. Both sectors drive a significant demand for steel.

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