Cliffs accelerates WA exit

US-based Cleveland-Cliffs is planning to exit its Western Australian iron ore operations by the end of the year.

Cliffs accelerates WA exit Cliffs accelerates WA exit Cliffs accelerates WA exit Cliffs accelerates WA exit Cliffs accelerates WA exit

The Koolyanobbing mine in WA sold 2 million tonnes of iron ore in the December quarter, down 30% year-on-year.

Full-year sales dropped to 10.1Mt from 11.8Mt and the margin per tonne dropped to US$4.50 per tonne from $9.75/t.

Cash costs were $44.56/t for the December quarter, up by 22% year-on-year, due to increased mining costs, driven by a change in the overall production plan resulting in a higher strip ratio, as well as increased logistics and unfavourable exchange rate variances.

As a result, the sales margin per tonne dropped to negative $3.41/t for the quarter, down from $18.89/t a year earlier.

The business reported a negative $3 million adjusted EBITDA for the fou...