US-based miner Cliffs Natural Resources Inc. has announced that it has entered into a definitive agreement to sell its Logan County Coal assets in southern West Virginia to Coronado Coal II LLC for $175 million in cash. Cliffs anticipates using the cash proceeds from the sale for debt repayment.
Cliffs Natural Resources decided to sell its metallurgical coal assets to focus on iron ore operations. The company stated that it will continue to explore sale options for its other coal assets.
According to Cliffs Natural Resources, completion of the sale to Coronado Coal II LLC is subject to a number of conditions including customary regulatory approvals. The parties expect to close the transaction by year-end 2014 and Cliffs expects to record a loss on the sale of assets in the range of approximately $375 million to $425 million on a pre-tax basis in the fourth quarter of 2014.