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Cleveland-Cliffs Terminates Negotiations for Sale of Wabush Mines
03/05/2008 - Cleveland-Cliffs terminates negotiations to sell its 26.8% interest in the Wabush Mines joint venture to ArcelorMittal Dofasco.
Cleveland-Cliffs Inc. has terminated negotiations to sell its 26.8% interest in the Wabush Mines joint venture to ArcelorMittal Dofasco Inc.
“Cliffs believes that terminating negotiations and remaining a partner in the Wabush Mines joint venture is the best course of action for all stakeholders at the current time,” said Donald J. Gallagher, president of Cliffs’ North American Business Unit.
Wabush, which has been operating since 1965, includes Scully Iron Ore Mine near Wabush, Newfoundland, Labrador; the pellet plant and port facilities at Pointe Noire, Que.; and integrated rail facilities and other assets. Wabush produced 4.6 million tons of iron ore pellets in 2007.
Cliffs had originally entered into discussions with Dofasco in September 2007. Negotiations had been ongoing until today (March 4, 2008).
Headquartered in Cleveland, Ohio, Cleveland-Cliffs is an international mining company, the largest producer of iron ore pellets in North America, and a major supplier of metallurgical coal to the global steelmaking industry. The company operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and three coking coal mines in West Virginia and Alabama. Cliffs also owns 80% of Portman Limited, a large iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. In addition, the company has a 30% interest in the Amapá Project, a Brazilian iron ore project, and a 45% economic interest in the Sonoma Project, an Australian coking and thermal coal project.
