Cleveland-based iron ore mining company Cleveland-Cliffs Inc. (Cliffs) has finalised the sale of its Asia Pacific iron ore assets to Australian mining company Mineral Resources Limited (MRL). Following the transaction, Cliffs’ previously disclosed costs of closing the Australian operations were reduced by approximately US$85 million. According to Cliffs, this amount includes asset retirement obligations assumed by MRL.
As a result of the transaction, in 3Q18 Cliffs will be recording a reversal of its currency translation adjustment, which will result in a positive contribution to net income of approximately US$230 million, or income of approximately US$0.75 per diluted share.
Cliffs' Chairman, President and CEO, Lourenco Goncalves, said: "With the closure of the sale of the Australian assets, we have now completed our multi-year transformation back to our roots as a supplier of high-grade iron units to the Great Lakes steel industry."
Goncalves added: "I must again thank our APIO team for their crucial role and contribution to our successful turnaround over the last four years. This positive attitude and full engagement of our entire workforce will continue to allow us to be successful as we grow and evolve to supply high quality metallics to electric arc furnaces.”