The Company's ongoing commitment to the pursuit of environmental excellence was strengthened in 2002. In June, Cliffs' President and Chief Operating Officer, Tom O'Neil, inaugurated the President's Annual Environmental Tour, where Cliffs' top management team visited all Cliffs' properties to comprehensively review environmental programs, projects and issues. In addition to inspecting each operation from an environmental perspective, specific environmental improvement plans were reviewed in depth with mine management. Cliffs' environmental management system is focused through the Environmental Leadership Team, which is comprised of representatives from each operation.

A highlight of Cliffs' Pollution Prevention and Waste Minimization Programs was the voluntary total elimination of PCB-containing devices at three facilities: Hibbing Mine, Northshore Mine and Wabush Mines in Labrador, Canada. To date, 75 percent of Cliffs' facilities operate with zero PCBs. With continuing reductions at its other facilities, Cliffs is ahead of schedule in meeting the objectives of the Great Lakes Binational Strategy for reduction in the use of PCBs, which call for a 90 percent reduction by 2006.

Cliffs' Minnesota operations are participating in a Voluntary Mercury Reduction Program sponsored by the Minnesota Pollution Control Agency (MPCA). Our goal, along with MPCA, is the reduction of anthropogenic mercury in the environment. In addition to identification and collection activities on site, facilities have initiated cooperative programs with local communities.

The American Concrete Institute recognized Cliffs' Northshore Mine with its 2002 Environmental Excellence Award for re-engineering its fly ash (coal ash) management system. The new fly ash management system provides significant waste minimization and is an excellent example of converting a waste by-product of the Northshore's coal burning power plant, which is normally put into a landfill, into a useful concrete enhancer. Northshore is now one of a few Minnesota fly ash suppliers approved for publicly funded construction projects. Today, up to 18,000 tons of fly ash are purchased annually from Northshore to produce higher-quality concrete for the state's highway system.

Cliffs Ecological Projects
Reclamation and revegetation is an ongoing activity at all Cliffs' mines. During the year, employees of the Empire Mine planted more than 20,000 trees on mining and stockpile areas as a part of its ongoing reclamation program. Numerous species of trees were planted to achieve diversity found in the natural environment.

At Wabush Mines, the ongoing revegetation of the tailings basin has created a unique habitat for migratory birds, attracting many species not normally seen. A cooperative program with local bird watchers has identified more than 100 species on Wabush's tailings basin.

At Cliffs' former Republic Mine in Michigan, a wetlands preserve has been constructed in the former tailings basin that now supports a wide diversity of birds and wildlife. The Republic Wetlands Preserve encompasses 2,300 acres where 60,000 wetland plants and 225,000 wetland trees have been planted. Grasses, shrubs, trees, small ponds and marshy areas have created a diverse habitat for wildlife. The creation of this preserve required careful planning and engineering and governmental approvals before construction, and eventually all 2,300 acres will be placed in a conservation easement for the benefit of the State of Michigan.

The Northshore Mine has a cooperative program with the Minnesota Raptor Center to monitor a pair of peregrine falcons that are nesting on the plant site. Northshore is also an active supporter of the Wolf Ridge Environmental Learning Center. A visitor information site, overlooking Northshore's Silver Bay plant, is a popular stop for tourists visiting the shore of Lake Superior.