Cleveland, Ohio-based iron ore miner Cliffs Natural Resources Inc. announced Tuesday that its Board of Directors has approved plans to seek a potential sale and to idle the operations of its Michigan renewaFUEL biomass production facility.
The Marquette, Michigan facility was built to produce high-energy, low-emission biofuel cubes from wood and agricultural feed stocks, but initial production at the plant has not performed to its design capacity, nor a production level that justifies continued operation.
David Blake, Cliffs' Senior Vice President, North American Iron Ore and the Cliffs executive with operational responsibility for renewaFUEL, said in a press release: "Over recent years Cliffs executed a strategy focused on expanding its portfolio of steelmaking raw material assets. Cliffs continues to successfully grow its core iron mining business with a number of expansion projects underway. With this, it is essential that our management focus and allocation of capital resources be deployed where we can have the most impact for all stakeholders."
Blake added, "While we believe the renewaFUEL business model remains viable, the business is likely to have better prospects with a company more experienced in the area of biofuels that can develop renewaFUEL to its full potential."