Exhibit 13(b)

                        REPORT OF INDEPENDENT AUDITORS
                        ------------------------------



Shareholders and Board of Directors
Cleveland-Cliffs Inc



We have audited  the accompanying  statement of consolidated
financial  position of  Cleveland-Cliffs Inc  and consolidated
subsidiaries as  of December  31,  1993 and  1992, and  the
related statements  of  consolidated income,  shareholders'
equity and  cash flows  for each  of the  three years in  the
period ended  December 31, 1993. Our audits  also included
the financial  statement schedules listed  in the index  at
Item 14(a).  These financial statements and schedules  are the
responsibility of the  Company's management. Our
responsibility is to express an opinion on these financial
statements and schedules based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that  we plan and perform the  audit
to obtain reasonable  assurance about whether  the financial
statements  are  free  of material  misstatement.  An audit
includes  examining, on  a  test basis, evidence supporting
the amounts and disclosures in  the financial statements. An
audit  also includes assessing the accounting  principles
used and  significant estimates  made  by management,  as
well  as evaluating  the overall  financial  statement
presentation.  We believe  that our  audits provide  a
reasonable  basis for  our opinion.

In our  opinion, the  financial statements  referred to above
present fairly,  in all  material respects,  the consolidated
financial position  of Cleveland-Cliffs  Inc and consolidated
subsidiaries at December  31, 1993 and 1992, and the
consolidated results of their operations and their cash  flows
for each of the  three years in the period ended  December 31,
1993, in conformity with  generally accepted accounting
principles. Also, in our  opinion, the  related financial
statement  schedules, when considered  in relation to  the
basic financial statements taken as a whole, present fairly in
all material respects the information set forth therein.

As discussed  in Note A to the  consolidated financial
statements, in 1992 the Company  changed its methods of
accounting for post-retirement benefits other than pensions
and income taxes.



                                       Ernst & Young



Cleveland, Ohio
February 14, 1994





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