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“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.