Cliffs Natural Resources (CLF) CLF stock is surging after hedge fund Casablanca Capital announced a 5.2% stake and urged management to move to boost the stock price.

CLF stock was up 10% at time of this posting.

Investment managers say the double the share price to $53, they would aim to: convert U.S. assets into an MLP, double the annual dividend to shareholders, and cut cost expenditures.

In a response, CLF says it is “making progress on reducing costs, strengthening its balance sheet with cash flows from operations, and taking a disciplined approach to capital spending [and] will continue to evaluate the strategic fit and value creation potential of all the company’s assets as part of that process.” (via the New York Times)

In a publicly disclosed letter, Casablanca urged the company’s management to combine its Bloom Lake property in Canada with its Asian holdings to create what it called Cliffs International, then spin off that entity to existing shareholders.

The remaining Cliffs business should add its assets to a master limited partnership, a specialized corporate structure that pays no taxes and gives most of its profit to investors.

“By taking these steps, we believe Cliffs can highlight and enhance the unique strengths of its businesses and unlock significant shareholder value,” Casablanca wrote in the statement.

Cliffs responded that it “welcomes open communications with all of its shareholders” in addition to the aforementioned changes.

CLF is a mining stock that focuses mainly on iron and metallurgical coal.

CLF stock fell more than 30% in 2013, and before this increase, was down more than 70% from its 2011 peak.