Cliffs Natural Resources Inc. (CLF) Wednesday said it is considering to exit its Eastern Canadian iron ore operations, that may lead to the closure of the Bloom Lake mine. The company expects closure costs to be in the range of $650 million to $700 million in the next five years.
Lourenco Goncalves, CEO said, with expansion no longer viable, the group has shifted its focus to executing an exit option for Eastern Canadian operations that minimizes the cash outflows and associated liabilities.
In addition, Cliffs said its unit, Cliffs Quebec Iron Mining Ltd., along with Bloom Lake General Partner Ltd. and The Bloom Lake Iron Ore Ltd. Partnership, recently lost an arbitration claim they filed against a former Bloom Lake customer relating to the termination of an iron ore sales agreement, back in August 2011. The arbitrators decided in favor of the former customer and awarded it damages in an amount of nearly $71 million as well as attorneys' fees and accrued interest from the date of termination of the offtake agreement in August.
For comments and feedback contact: editorial@rttnews.com
Business News