Iron ore supplier Cleveland-Cliffs is selling its interest in a Canadian mine.
Officials announced Wednesday that the Cleveland-based company has accepted an offer to sell its 26.8 percent interest in the Wabush Mines joint venture.
The mine, operating since 1965, is at Newfoundland, Labrador.
Under a definitive purchase agreement, Consolidated Thompson Iron Mines Ltd. would acquire 71.4 percent of Wabush Mines owned by Cleveland-Cliffs (26.8 percent) and Stelco Inc. (44.6 percent) for $64.3 million in cash and 3 million shares of Consolidated Thompson Iron Ore Mines.
Cleveland-Cliffs' share of the deal would be $24.1 million. Cleveland-Cliffs would also hold the option to purchase about 1.1 million shares.
ADVERTISEMENT
Wabush has long-term issues with its mine pit, said Donald Gallagher, Cleveland-Cliffs president of North American iron ore. The sale would allow Cleveland-Cliffs to allocate resources to longer-lived assets in North America, Gallagher said.
In Minnesota, Cleveland-Cliffs owns and manages Northshore Mining Co. and holds ownership and manages United Taconite and Hibbing Taconite.
