Cleveland-Cliffs Inc. on June 12 announced a definitive deal for the sale of its Asia Pacific Iron Ore business to Mineral Resources Ltd.
Asia Pacific Iron Ore is an Australian mining services company with a portfolio of existing mining operations across multiple commodities, including the Koolyanobbing iron ore mine and other iron ore projects in the country.
The costs of closing the Australian operations are expected to be reduced by approximately US$65 million to US$75 million by the deal based on Mineral Resources assuming certain obligations and Cleveland-Cliffs reaching negotiated settlements with other third parties.
Chairman and CEO Lourenco Goncalves said, "The sale of these assets to Mineral Resources marks Cliffs' exit from the Australian iron ore business, and represents the final step in the implementation of our U.S. iron ore-centric strategy."
Financial details were not disclosed, and the transaction is expected to be completed by the end of the second quarter.
