The cash dividend will be payable on June 3 to shareholders of the record at close of business on May 23.

The board also declared quarterly cash dividends on the company’s Series A Mandatory Convertible Preferred Stock, of $US17.50 ($A18.60) per share.

The cash dividend will be payable on August 1, 2014 to shareholders of record as of the close of business on July 15, 2014.

The company said: “For the first quarter of 2014, North American coal sales volume was 1.6 million tons, a 12% decrease from 1.8Mt sold in the prior year's comparable quarter.

“The decrease was driven by lower sales to certain customers due to extended pricing negotiations and adverse weather-related impacts”

North American coal’s 2014 first-quarter revenues per ton were down 20% to $88.61, versus $110.35 in the first quarter of 2013.

The company said the decline was down to lower market pricing for metallurgical coal products, along with a favourable impact in the prior year's first quarter related to tons that were priced at a higher rate.

First-quarter 2014 North American coal cash costs were $100.38/t and included a $14/t lower-cost-or-market inventory adjustment.

First-quarter 2014 cash costs per ton decreased 4%, to $86. This was driven by a continued focus on improving operating efficiencies.

When compared to the first quarter of 2013, the company increased its total liquidity by $460 million or 32%.

Cliffs said the increase was driven by a higher year-over-year cash and cash equivalents balance and lower borrowings on the company's revolving credit facilities.