Cliffs to grow iron ore and coal production in 2012

Friday, 20 January 2012 02:02:42 (GMT+2)

Cleveland, Ohio-based mining company Cliffs Natural Resources announced Thursday its projections for capital expenditures throughout 2012. Cliffs plans to invest approximated $1 billion this year, representing an expected 12 percent increase compared to its 2011 capital expenditures of $880 billion.

In its US iron ore business segments, Cliffs anticipates spending $60 million in 2012 to extend the life of its Empire Mine until 2014.This project is expected to allow Empire to continue producing at a rate of approximately 3 million tons of iron ore annually through its remaining mine life.  Additionally, Cliffs plans to poor $470 million into its Bloom Lake's Phase II expansion to 16 million tons of iron ore in Eastern Canada. Another $45 million will be invested in port and rail upgrades in Eastern Canada.

In its Asia Pacific iron ore business segment, Cliffs anticipates capital spending of approximately $40 million related to the ongoing capacity expansion of the Koolyanobbing Complex in Western Australia to 11 million tons.

In its North American Coal business segment, Cliffs plans to invest $50 million related to growing high-volatile metallurgical coal production capacity from its continuous mining operations in West Virginia.

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