Cliffs sells US met coal asset to focus on iron ore

US miner Cliffs Natural Resources has agreed to sell its Logan County metallurgical coal assets in the US state of West Virginia to Coronado Coal for $175 million, as part of its move to focus solely on iron ore.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

“This transaction is another important step in executing our strategy to transform Cliffs into a stronger, pure-play US iron ore supplier,” president and ceo Lourenco Goncalves said on Wednesday December 3.

Cliffs’ other coal assets in the USA, Oak Grove mine in Alabama and Pinnacle mine in West Virginia, were unaffected by the deal. The company, however, will continue to explore other sale options for the assets.

The Logan County transaction, still subject to regulatory approvals, was expected to close by the end of this year.

Cliffs expected to record a loss of between $375 million and $425 million on a pre-tax basis for the fourth quarter of this year on the sale, according to a statement today.

The US miner will use the cash proceeds for debt repayment, it said.

Deutsche Bank Securities acted as financial adviser and Hahn Loeser & Parks LLP as legal adviser to Cliffs on the transaction.

What to read next
A coalition of the world’s leading aluminium market participants is set to make the supply chain more sustainable, the International Aluminium Institute (IAI) said on Monday, March 27
The publication of Fastmarkets’ Shanghai ferro-nickel price assessment for Monday March 27 was delayed due to a reporter error during the data collection process.
Fastmarkets proposes to extend the shipment window of its alumina index inferred, fob Brazil, to allow for greater inclusion of reported liquidity, and to increase the frequency of publication to weekly.
Following a month-long consultation period, Fastmarkets has amended the methodology for the bi-weekly assessment of the aluminium P1020A main Japanese ports (MJP) spot premium, to include domestic tenders and deals from the Japanese market.
Fastmarkets proposes to discontinue its ferrous scrap consumer buying price for cast iron borings in Pittsburgh due to a lack of liquidity.
Fastmarkets is proposing a realignment of its consumer buying price for ferrous scrap No1 busheling in Cincinnati and Pittsburgh, effective from the May 2023 monthly settlement.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.