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Nov 25, 2014
Cliff Resources is looking to exit its Easter Canadian iron ore operations that could see the closure of its Bloom Lake mine in Quebec.
“Despite the continued interest of the prospective equity partners in Bloom Lake and in its high quality ore, the potential investment is not achievable within a time frame acceptable to Cliffs, said Lourenco Goncalves , Cliffs’ Chairman, President and Chief Executive Officer. “ With expansion no longer viable, we have shifted our focus to executing an exit option for Eastern Canadian operations that minimizes the cash outflows and associated liabilities.”
The investment to develop the Bloom Lake Phase 2 project was estimated to cost $1.2 billion. The decision to pull out of the project would save Cliffs between $520 million to $570 million as estimated closure costs are expected to be in the range of $650 million to $700 million in the next five years.
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