Mesabi Trust is a royalty trust. The Trust derives income from an iron mine (the Peter Mitchell Mine) located near Babbitt, Minnesota, at the eastern end of the Mesabi Iron Range. The mine is operated by Northshore Mining Company (Northshore), a subsidiary of Cleveland-Cliffs Inc. (CCI). Northshore mines the ore, which is in the form of taconite, a hard rock containing approximately 21% recoverable iron, crushes it, separates the iron particles from the non-metallic, and forms the resulting concentrate into pellets, which are shipped for use in steel-producing blast furnaces of customers of CCI, an international mining company. Northshore pays royalties to the Trust primarily based on the price of pellets shipped from Northshore’s pellet plant at Silver Bay, Minnesota, on Lake Superior, plus a significantly smaller royalty based on tons of ore extracted at the mine.