MinRes buys Koolyanobbing

AS its hopes of acquiring Atlas Iron fade, Mineral Resources has acquired Cleveland-Cliffs’ Koolyanobbing iron ore operation.

MinRes buys Koolyanobbing MinRes buys Koolyanobbing MinRes buys Koolyanobbing MinRes buys Koolyanobbing MinRes buys Koolyanobbing

Koolyanobbing

The formal terms of the agreement were not disclosed but Cliffs said the costs of closing the operation was expected to be reduced by US$65-75 million, based on MinRes assuming certain obligations and Cliffs reaching negotiated settlements with other third parties.

In April, Cliffs said it estimated that the total closure costs would be $140-170 million, comprising $60-70 million in contract termination costs, $30-40 million in employee severance, demobilisation and other closure-related costs, and non-cash impairments of $50-60 million.

Cliffs chairman, president and CEO Lourenco Goncalves said the sale of the assets marked Cliffs' exit from Australia and was the final step in its strategy to focus on the US domestic iron ore and steel market.

"We are pleased...

topics

loader