Last month the company rehired more than 200 workers at its various US coal operations.

For its North American coal division, Cliffs has lifted production guidance 38% to 1.8 million tons.

Its iron ore division is now expected to produce 17Mt, 13% higher than the previous expectation.

“As our customers are increasing steel production and restarting blast furnaces in North America and Europe, we are seeing modest improvements in orders and in market expectations for steelmaking raw materials,” Cliffs North America president Donald J Gallagher said.

“We will continue to monitor the markets closely to ensure we adjust production appropriately to meet demand as needed."

Cliffs’ fortunes are especially tied to the steel industry, as the company is the largest producer of iron ore pellets in North America.

Cliffs has a 45% stake of the Sonoma project in Queensland, which is anticipated to produce 3.1Mt this year at a 60:40 mix of thermal and metallurgical coal. Cliffs’ portfolio of mines in North America consists of six iron ore operations and two coking coal mines.