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Exhibit 10(b)

Confidential treatment has been requested for the redacted portions of this exhibit, and such confidential portions have been omitted and filed separately with the Securities and Exchange Commission.

Term Sheet (the “Term Sheet”) for Modification of certain terms of the Pellet Sale and

Purchase Agreements by and between Cliffs and Severstal

Dated and Effective June 15, 2009

Dearborn Agreement: Specifically, in connection therewith, Cliffs and SNA are parties to that certain Amended and Restated Pellet Sale and Purchase Agreement dated January 1, 2006 (the “Dearborn Pellet Agreement”), as amended by the April 29, 2008 Term Sheet for Amendment and Extension of the Amended and Restated Pellet Sale and Purchase Agreement (the “April Term Sheet”), Term Sheet for Modification of Certain Terms of Pellet Sale and Purchase Agreement by and between Cliffs and Severstal dated and effective December 15, 2008 (the “December 2008 Term Sheet”) and together with the April Term Sheet and the Dearborn Pellet Agreement, the “Dearborn Agreement”) related to the sale and purchase of Flux Pellets¹ to and for SNA’s Dearborn, Michigan facility (“Dearborn”).

Sparrows Agreement: SNA and Cliffs Sales are parties to that certain Agreement for Sale of Reclaimed Iron Ore Units dated May 21, 2008 as modified by the December 2008 Term Sheet (the “Sparrows Agreement”) related to the sale and purchase of Iron Units to and for Severstal’s Sparrows Point, Maryland facility (“Sparrows”).

Confidential treatment has been requested for the redacted portions of this exhibit, and such confidential portions have been omitted and filed separately with the Securities and Exchange Commission.

SNA maintains the same remedies if Flux Pellets fail to meet the required iron content as set forth Dearborn Agreement. The remaining tonnage of the 2009 Annual Nomination is to be priced in accordance with Paragraph 4A of this Term Sheet. SNA shall have no further right to modify the 2009 Annual Nomination.

A. Purchasing **** tons of **** Pellets at $**** per gross ton f.o.b. **** Mine for consumption at Dearborn and paying for such pellets as follows:

Cliffs agrees that such tonnage will possess iron content and pellet quality consistent with the Tilden Pellets as required in the Dearborn Agreement.

B. Upon ****, SNA shall purchase the **** pursuant to the Sparrows Agreement, provided Cliffs Sales shall deliver no more than **** tons of ****. The price shall be at a then fair market price delivered to Sparrows (with freight at the expense of Cliffs from the ****) and shall be taken within one year of ****. Sparrows will purchase this volume on an as needed basis, to the extent not previously sold to third parties by Cliffs Sales, on net 30 day terms from the date of shipment.

A. (i) The **** Current Component shall be paid as follows:

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Confidential treatment has been requested for the redacted portions of this exhibit, and such confidential portions have been omitted and filed separately with the Securities and Exchange Commission.

B. (i) The **** Deferred Component shall be paid as follows:

(ii) Interest shall accrue on the Cumulative Deferral Balance, which is defined as the cumulative difference between the **** in the Dearborn Agreement and the payment schedule for the Current Component and the Deferred Component in the Term Sheet beginning on June 15, 2009 at the higher of ****% or the Prime Rate, plus **** basis points. Such interest shall be paid by SNA to Cliffs on or before the last business day of each calendar quarter beginning September 2009 and continue until the principal balance of the Deferred Component has been paid in full. The schedule below shows the calculation of the Cumulative Deferral Balance to which interest, provided all principal and interest payments are made in full and on time, is to be applied:

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Confidential treatment has been requested for the redacted portions of this exhibit, and such confidential portions have been omitted and filed separately with the Securities and Exchange Commission.

1. The right of Cliffs to suspend performance under either the Dearborn Agreement;

2. The right to set off, offset or recoup obligations owed by Cliffs to Severstal against obligations owed by Severstal to Cliffs;

3. The right, at Cliffs’ option, to require SNA to purchase and pay for the Waived Tonnage (or such portion thereof as Cliffs elects in its sole discretion) from Cliffs at the price of $**** per ton; and

4. Any unpaid portion of the Current Amount or the Deferred Amount shall automatically accelerate and be immediately due and payable and bear interest at a default rate of the higher of ****% or the Prime Rate plus **** basis points until it is paid in full.

B. In addition to the foregoing, in the event that prior to the earlier of December 31 2013 and the satisfaction by SNA of its obligations under this Term Sheet, there is a material failure by SNA to perform and comply with an obligation pursuant to the Dearborn Agreement (as modified by this and other Term Sheets or Amendments), Cliffs shall retain all rights and remedies available under the Dearborn Agreement prior to its amendment by this Term Sheet and/or applicable law in addition to the following rights and remedies:

1. The right to require SNA to purchase and pay for the Waived Tonnage (or such portion thereof as Cliffs elects in its sole discretion) from Cliffs at the price of $**** per ton; and/or

2. Any unpaid portion of the Current Amount or the Deferred Amount shall automatically accelerate and be immediately due and payable and bear interest at a default rate of the higher of ****% or the Prime Rate plus **** basis points until it is paid in full.

B. Title shall transfer upon receipt of payment. Title retention/security interest documentation shall otherwise remain the same as set forth in the Dearborn Agreement and the Sparrows Agreement under which the particular pellets are being purchased.

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Confidential treatment has been requested for the redacted portions of this exhibit, and such confidential portions have been omitted and filed separately with the Securities and Exchange Commission.

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