The Ohio-based producer said the $1 billion is made up of about $US300 million of sustaining capital, while the other $700 million is earmarked for growth and improvements to its productivity.

The capex budget is 12% higher than its 2011 projection of $800 million, though last year’s budget was also originally $1 billion.

For its North American Coal arm, Cliffs said it will spend approximately $50 million. Its primary concentration will be expanding capacities at its metallurgical continuous mining operations in West Virginia.

Cliffs said, overall, that its capex plan is intended to help financially support the organic growth that has stemmed from its most recent strategic deals.

“These transactions have meaningfully diversified Cliffs' business and provided the company significant exposure to customers outside of [the] historical North American steelmaking customer base,” officials said.

Aside from coal, its biggest plans this year include $60 million to extend the life of its Empire iron ore operation until 2014 and $470 million into its expansion of the Bloom Lake II iron ore complex in eastern Canada. It will also spend $45 million to upgrade rail and port infrastructure in that area.

Cliffs Natural Resources has both coal and iron ore mines in the US, and also produces iron ore in Australia.