Cleveland-Cliffs (NYSE: CLF) announced plans to enter the rare earth mining business after discovering two potential deposits in Michigan and Minnesota, which would allow the Ohio-based company to expand beyond iron ore and steel.
The move, chief executive Lourenco Goncalves said, could strengthen the United States’ supply of critical minerals essential for electronics and clean energy technologies.
Goncalves said the company is working with geologists to determine whether the deposits are commercially viable. “We are a mining company; this isn’t new territory for us,” he told analysts during the company’s earnings call on Monday.
Cleveland-Cliffs’ shares surged 23% to $16.68 on Monday, the biggest gain since June, after the company also reported stronger-than-expected third-quarter earnings. The rally lifted its market value to about $8.2 billion.
Strategic shift
Goncalves said…
