US-based mining and natural resources company Cleveland-Cliffs Inc. has announced that it has completed the sale of the assets of its subsidiary Asia Pacific Iron Ore in Western Australia to Australia-based mining services and processing company Mineral Resources Limited. With the transaction, Cliffs’ previously disclosed costs of closing the Australian operations were reduced by approximately $85 million.
According to the company’s statement, as a result of the transaction, in the third quarter Cliffs will be recording a reversal of its currency translation adjustment, which will result in a positive contribution to net income of approximately $230 million.
Lourenco Goncalves, Cliffs' CEO, stated that with the closure of the sale of the Australian assets, the company has completed its multi-year transformation back to its roots as a supplier of high-grade iron units to the Great Lakes (North America) steel industry.