Steel Products
Cleveland Cliffs to Close Australian Business
Written by Sandy Williams
April 10, 2018
Cleveland Cliffs says it will exit its Australian iron ore operations by June 30, 2018. The company said in an April 6 SEC filing that increasingly discounted prices for lower-iron-content ore, the quality of the remaining iron ore reserves at APIO, and the lack of a legitimate offer from a qualified buyer, were factors in the decision.
Cliffs estimates total closing costs will be in the range of $140 million to $170 million exclusive of any proceeds received from sale of the assets.
The closure was expected at some point in 2018. CEO Lourenco Goncalves said during the last earnings conference call that the mining operations at Asia Pacific Iron Ore would occur when the mine was no longer profitable. The timing of the closure follows the March expiration of supply agreements with customers in China and Japan.
More details will be forthcoming during the first-quarter earnings call scheduled for April 20.
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Sandy Williams
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