Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Our first question comes from the line Michael Gambardella from JPMorgan. Please proceed with your question. Your mike is now live.
Michael Gambardella - JPMorgan
First question is on Wabush. My understanding is that Wabush had somewhat higher labor costs associated with it compared to the other North American operations. Could you give us an idea of historically what the operating results have been at Wabush, just roughly?
Joseph Carrabba
Mike, it is a high cost producer. I mean, most of the Eastern Canadian mines are. You are correct, the labor cost and also the weather. Simply the severe conditions of the weather and transporting the concentrate, the distance from the concentrator all the way down to (inaudible), certainly to where the pellet plants are and loading is certainly makes it a high cost producer. I don't have those specific numbers at hand for you. I can tell you in the last couple of years, it’s been a profitable mine for us. It has benefited from its ability to export and the people in the export market are quite used to the pellets with the manganese in them, but I don't have specific numbers for you this morning.
Laurie Brlas
It also does benefit from the international pricing more so, so we are more at market price there. So, that creates a better gap for it, and definitely we consider this to be an accretive transaction at the price it's at.
Michael Gambardella - JPMorgan
Has Wabush been 100% export or have they sent some material into the Mid-West?
Joseph Carrabba
We do send some occasionally down the Eastern Seaboard. As always, nothing is a 100% Mike, but it is primarily an export market driven product.
Michael Gambardella - JPMorgan
On the North American iron ore business with the new higher guidance, are you getting pretty good indications from the mills in terms of their requirements for 2010?
Joseph Carrabba
Not really. We don't have visibility all the way through. We are working off of the utilization and capacity of the mills versus looking through into the order books and seeing what they have in the mills, but basically working off of mill utilization capacity rates and what are anticipated into the New Year.
Michael Gambardella - JPMorgan
Was the biggest change the middle Cleveland operations?
Joseph Carrabba
That was certainly a very pleasant surprise that we hadn't anticipated, but we are seeing uplift pretty much across the board in North America, but Cleveland was a very nice surprise for us.
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