Cleveland Cliffs will no longer have a stake in Australian iron ore mining. The company announced on Tuesday that it will sell all of the assets of its Asia Pacific Iron Ore business to Australian mining company Mineral Resources Limited. The sale continues Cliffs’ strategy to concentrate on assets in the United States.
The transaction will reduce Cleveland Cliffs’ previously disclosed closing costs of the Australian operations by $65 million to $75 million. The deal is expected to be final by the end of second-quarter 2018.
“The sale of these assets to Mineral Resources marks Cliffs’ exit from the Australian iron ore business and represents the final step in the implementation of our U.S. iron ore-centric strategy,” said Chairman and CEO Lourenco Goncalves. “We are pleased to have reached agreement on a transaction that not only brings real value to Cliffs’ shareholders, but also represents the potential for continued job opportunities for employees in Western Australia who would be impacted by the pending closure of the Koolyanobbing complex.”
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