764065--2/18/2010--CLIFFS_NATURAL_RESOURCES

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The global economic crisis created uncertainty and could continue to adversely affect our business. The global economic crisis resulted in downward pressure on prices for iron ore and metallurgical coal. Negative economic conditions may adversely impact the ability of our customers to meet their obligations to us on a timely basis or at all. Coal mining is complex due to geological characteristics of the region. Anti-takeover provisions could make it more difficult for a third party to acquire us. Capacity expansions within the industry could lead to lower global iron ore and coal prices or impact our production. If steelmakers use methods other than blast furnace production to produce steel, or if their blast furnaces shut down or otherwise reduce production, the demand for our iron ore and coal products may decrease. A substantial majority of our sales are made under term supply agreements to a limited number of customers, which are important to the stability and profitability of our operations. The availability of capital for exploration, acquisitions and mine development may be limited. Our ability to collect payments from our customers depends on their creditworthiness. Mine closures entail substantial costs, and if we close one or more of our mines sooner than anticipated, our results of operations and financial condition may be significantly and adversely affected. We rely on estimates of our recoverable reserves, which is complex due to geological characteristics of the properties and the number of assumptions made. We rely on our joint venture partners in our mines to meet their payment obligations and are subject to risks involving the acts or omissions of our joint venture partners when we are not the manager of the joint venture. Our expenditures for postretirement benefit and pension obligations could be materially higher than we have predicted if our underlying assumptions prove to be incorrect, if there are mine closures or our joint venture partners fail to perform their obligations that relate to employee pension plans. Our sales and competitive position depend on the ability to transport our products to our customers at competitive rates and in a timely manner. Our operating expenses could increase significantly if the price of electrical power, fuel or other energy sources increases. Natural disasters, weather conditions, disruption of energy, unanticipated geological conditions, equipment failures, and other unexpected events may lead our customers, our suppliers, or our facilities to curtail production or shut down their operations. We are subject to extensive governmental regulation, which imposes, and will continue to impose, significant costs and liabilities on us, and future regulation could increase those costs and liabilities or limit our ability to produce iron ore and coal products. Our North American coal operations are subject to increasing levels of regulatory oversight, making it more difficult to obtain and maintain necessary operating permits. Underground mining is subject to increased safety regulation and may require us to incur additional cost. Our profitability could be negatively affected if we fail to maintain satisfactory labor relations. We may encounter labor shortages for critical operational positions, which could affect our ability to produce our products. Our profitability could be affected by the failure of outside contractors to perform. We may be unable to successfully identify, acquire and integrate strategic acquisition candidates. We must continually replace reserves depleted by production. Our exploration activities may not result in additional discoveries. We are subject to risks involving operations in multiple countries. We are subject to a variety of market risks.

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764065--2/18/2010--CLIFFS_NATURAL_RESOURCES_INC.