On February 1, North American iron ore and metallurgical coal miner Cliffs Natural Resources Inc. announced that it has completed the acquisition of its former partners' interests in the Wabush Mines joint venture for approximately $88 million.
As SteelOrbis previously reported, in October 2009 Cliffs Natural Resources Inc. stated that it would exercise its right of first refusal to acquire U.S. Steel Canada's 44.6 percent interest and ArcelorMittal Dofasco's 28.6 percent interest in the joint venture. With the closing of the acquisition, Cliffs now owns 100 percent of the operation that it has managed since 1965. The Wabush Mines operation includes the Scully Iron Ore Mine near Wabush, Newfoundland, Labrador, pellet plant and port facilities at Point Noire, Quebec, and also integrated rail facilities.
With this transaction, Cliffs adds more than 50 million mt of iron ore reserves and approximately 4 million mt of incremental iron ore pellet production capacity with access to the seaborne market.