Mining company Cleveland-Cliffs says it will buy Alpha Natural Resources for nearly $10 billion in cash and stock in a move to boost its role as a supplier to the global steel industry.

The boards of both Cleveland-Cliffs Inc. and Abingdon, Va.-based Alpha Natural Resources Inc. have approved the deal, in which Alpha shareholders will receive 0.95 Cleveland-Cliffs shares ($105.89 based on the stock’s Tuesday closing price) and $22.23 in cash for each share held.

The $128.12 combined price represents a 35 percent premium to Alpha’s Tuesday close of $94.92. Based on the company’s 70.3 million outstanding shares at April 23, the deal is valued at $9.01 billion. In a statement, the companies valued the transaction at $10 billion.

The combined company will be named Cliffs Natural Resources. The new company would own nine iron ore facilities and more than 60 coal mines in North and South America and Australia.