Cleveland-Cliffs closes deal to buy 30% of ore project

Cleveland-Cliffs Inc. announced Monday that it has completed the transaction to buy a 30 percent interest in the Amapa Mine, a Brazilian iron ore project, entirely financed by cash-on-hand. Cleveland-Cliffs has acquired 100 percent of shares in Centennial Asset Mining Fund LLC, an affiliate of MMX Mineracao e Metalicos SA, for the ownership of 30 percent of a Brazilian iron ore project, the Amapa Project. The move follows Cliffs' purchase for US$133 million of all shares of Centennial Asset Amapa Participacoes SA, which holds 30 percent of the Amapa Project. The project requires approximately $350 million of additional capital to become fully operational, which will include around $250 million of project-level debt financing. Cliffs will be responsible for its 30 percent pro-rata share of equity capital. The capital would be used to buy mining equipment, build an ore beneficiation plant, and to update rail and port infrastructure to support the project.