Newspaper article The Canadian Press

Cliffs Takes US$1.5 Billion in Writedowns, Most Due to Canadian Iron Acquisition

Newspaper article The Canadian Press

Cliffs Takes US$1.5 Billion in Writedowns, Most Due to Canadian Iron Acquisition

Article excerpt

Cliffs writes down Canadian iron ore unit

--

CLEVELAND - Cliffs Natural Resources Inc. will take US$1.5 billion in non-cash writedowns in the upcoming fourth-quarter, including US$1 billion related to delays and unanticipated costs following its acquisition of Consolidated Thompson Iron Mines.

The iron ore and coal mining company bought Consolidated Thompson and its majority stake in the Bloom Lake open pit iron mine in Quebec in 2011 for $4.9 billion.

The global economy has slowed since then and demand for steel and iron has fallen, pushing down iron ore prices.

"The impairment is primarily driven by the project's anticipated lower long-term volumes and higher capital and operating costs," it said in a statement ahead of the release of its fourth-quarter and full-year results on Feb. 13.

"The previously announced delay of the Phase II expansion of the Bloom Lake mine also contributed to the impairment."

The decision to stop work on the concentrator and load out facility at Bloom Lake puts 450 contractors off the job. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.