DRI Plant Still in the Works for Cliffs
04/28/2017 - Iron ore miner Cliffs Natural Resources said it remains committed to building a direct-reduction plant and intends to make preliminary investments in the project in 2018, chief executive Lourenco Goncalves said Thursday.
Speaking during his company’s first-quarter earnings call, Goncalves said Cliffs will continue to focus on paying down debt this year, but, come 2018, plans to begin spending on the facility, which he envisions having 1.5 million tons of capacity.
Cliffs was looking at locating the plant at the former Essar Steel Minnesota project, which has gone unfinished after Essar ran out of cash and entered bankruptcy last summer.
Goncalves said Cliffs had been offering US$100 million in cash for the facility, but elected not to attend a bankruptcy auction after another potential buyer emerged and offered more.
The buyer is a consortium led by Virginia investor Thomas Clarke and his Chippewa Capital Partners. According the online Law360, the Chippewa offer included US$250 million in cash and a US$650 million secured loan.
During the call, Goncalves expressed skepticism about the Chippewa bid, and said it remains to be seen whether it is ultimately successful.
Cliffs was looking at locating the plant at the former Essar Steel Minnesota project, which has gone unfinished after Essar ran out of cash and entered bankruptcy last summer.
Goncalves said Cliffs had been offering US$100 million in cash for the facility, but elected not to attend a bankruptcy auction after another potential buyer emerged and offered more.
The buyer is a consortium led by Virginia investor Thomas Clarke and his Chippewa Capital Partners. According the online Law360, the Chippewa offer included US$250 million in cash and a US$650 million secured loan.
During the call, Goncalves expressed skepticism about the Chippewa bid, and said it remains to be seen whether it is ultimately successful.
