Four months after shutting down its Bloom Lake iron ore mine as part of a plan to exit Eastern Canada amid low commodity prices, U.S. miner Cliffs Natural Resources (NYSE:CLF) is about to divest itself of more Canadian assets.
The province now expects to attract Cdn$50 billion in investment, down from its 2011 forecast of Cdn$80 billion.
The Canadian miner became the latest victim of slumping iron ore prices.
The U.S. miner said the sale is part of a strategy to divest non-core assets and focus on supplying iron ore pellets to the North American steel industry.
Chief Executive Lourenco Goncalves said restructuring proceedings have begun in Montreal and sale options will be explored.
It also said it has reduced its net debt balance by more than $400 million.
Quebec's highest court has refused to hear an appeal of a last year judgment that rejected a motion to dismiss the millionaire lawsuit against the miner's Iron Ore Co. of Canada (IOC).
Active production at the Canadian Bloom Lake iron ore mine has completely ceased, and the sale of the firm's its struggling coal division has been completed.
The $7.5m fine was imposed following the Triangle Tailings Pond dam breach in May 2011 and other environmental missteps over a period of 18 months.
Miner is dropping coal operations to focus on iron ore.
Closing the mine will cost $650 million to $700 million over the next five years.
A Canadian region once touted as Ontario's answer to the oil sands will not be developed anytime soon- according to the CEO of a major stakeholder.
About 500 workers will lose their job.
The miner said the move was driven by its revised pricing outlook and adverse market conditions.
Quebec judge wouldn't dismiss $900 million lawsuit.
The new repurchase program will remain active until Dec. 31, 2015.
Casablanca Capital-backed Lourenco Goncalves (55) is also the new chairman of the board.
The fund, with just a 5.2% stake in Cliffs, has vowed to sell or spin the miner's international operations.
The firm is halting its Pinnacle metallurgical coal mine in West Virginia for at least six months, unless market conditions improve.
The government has set aside a maximum of $20 million from its Northern Plan Fund to estimate costs and define the best railway option for the iron-ore rich region.
The province is asking the Federal government to match the funds.
Vale calls it 'Canada's mine of the future.'
The miner's negotiations with one of its major shareholders has turned ugly.
'Sharper capital allocation must drive our decisions,' CEO Gary Halverson said.
The company is using its position as one of the biggest share holders to push for some major changes.
RBC Capital Markets says Cliffs made the right decision.
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