Cliffs' continued commitment to the pursuit of environmental excellence remained resolute in 2003, and programs were further strengthened toward that end. Under the leadership of Ed Dowling, Executive Vice President-Operations; Jim Trethewey, Senior Vice President-Operations Improvement; and Dave Crouch, Director-Environmental Affairs, the management team continued the Annual Environmental Tour with visits to all Cliffs properties for firsthand reviews of environmental programs and goals with the respective mine management teams.

In addition, the Cliffs Environmental Policy Implementation Team was inaugurated, with each mine represented by both an operations member and an environmental member. The team is focused on facilitating implementation of uniform environmental management systems (EMS), conforming to ISO 14001 protocols, at each of Cliffs' operating properties. The program is patterned after the Northshore Mine's EMS, which has been recommended for ISO 14001 certification by an independent auditor; formal certification is expected early in 2004.

In cooperation with the Minnesota Pollution Control Agency (MPCA), a Voluntary Mercury Reduction Program is continuing at Cliffs' Minnesota mines. MPCA has reported that approximately 90 percent of mercury entering state waters is airborne and originates from outside the state, and that no significant deposition originates from taconite operations.

Meanwhile, a clean fuels technology project being considered at the Northshore Mine in Minnesota would provide a source of low-cost, clean gas for the taconite furnaces as well as other energy requirements. The process would be capable of combusting coal, biomass and other energy sources such as shredded scrap tires that currently are landfilled.

At Cliffs-Erie, a former taconite mine, mill and pellet plant in Minnesota, the Company is conducting reclamation and closure activities in accordance with a state-approved plan. Following the guidelines of sustainable development, Cliffs-Erie is considering various options for renewed uses of the mine and plant site, including mining and processing of base and precious metals utilizing hydrometallurgical procedures, and wind generation of electricity. Cliffs Natural Stone LLC, already in commercial operation, is harvesting uniquely patterned and colored stone from the former mine areas for sale to landscape, greenhouse and masonry markets. Approximately 2,500 tons were shipped during 2003, and a significant increase in sales is forecast for 2004 following enthusiastic response at the Minnesota Landscaping Show.

CLIFFS ECOLOGICAL PROJECTS
Every Cliffs mine actively reclaims and revegetates areas disturbed by mining activities, in accordance with plans approved by the respective state and provincial agencies. For areas that will no longer be disturbed, this may involve reshaping and contouring, as appropriate, applying soil amendments, mulching, seeding and planting trees. Particular attention is given to wetlands, with preserves established in both Michigan and Minnesota. During 2003, the Michigan Department of Environmental Quality formally registered the 2,300-acre Republic Wetlands Preserve, which was constructed on a former tailings basin and has become the home for numerous species of wildlife.

Elsewhere, the Cliffs Michigan Mining Company has initiated a cooperative program with northern Michigan paper mills to utilize paper mill residual materials as a growth medium on rock stockpiles. These residual materials are rich in organic matter, plant-available nutrients and microbial biomass that make them ideally suited for mine reclamation. This program will have the double advantage of recycling an otherwise waste material that is landfilled and facilitating the establishment of a sustainable soil system and vegetation on rocky stockpiles.

Another innovative reclamation project in Michigan is benefiting from mine reclamation that was conducted at the historic Humboldt Mine in the 1970s. Hybrid aspen trees planted on the tailings basin have thrived and are now providing a source of tree cuttings with superior disease resistance and hardiness that can be used for reclamation at other sites. The goal for 2004 is to harvest 20,000 cuttings to establish nurseries and reclaim mine lands at the Empire and Tilden mines.

The 6,500-acre tailings basin at Hibbing Taconite Company in Minnesota has become the summer home for a population of Canada geese. The basin provides open water for the geese to escape predators, and the acres of beach planted with grasses and grains for control of wind erosion are a good food source. These combined features provide an excellent habitat for geese and other waterfowl. The Minnesota Department of Natural Resources has chosen the Hibbing basin as a banding site for its survey of regional waterfowl populations.