Cleveland-based iron ore mining company Cleveland-Cliffs has closed the sale of its Asia Pacific iron ore assets to Mineral Resources.
With the transaction, Cliffs’ previously disclosed costs of closing the Australian operations were reduced by approximately US$85 million. According to Cliffs, this included asset retirement obligations assumed by MRL.
As a result of the transaction, in 3Q18, Cliffs will be recording a reversal of its currency translation adjustment, which will result in a positive contribution to net income of approximately US$230 million, or income of approximately US$0.75 per diluted share.
Lourenco Goncalves, Cliffs' Chairman, President and Chief Executive Officer said that with the closure of the sale of the Australian assets the company has now completed its multi-year transformation back to its roots as a supplier of high-grade iron units to the Great Lakes steel industry.
Mr. Goncalves added, “I must again thank our APIO team for their crucial role and contribution to our successful turnaround over the last four years. This positive attitude and full engagement of our entire workforce will continue to allow us to be successful as we grow and evolve to supply high quality metallics to electric arc furnaces.”