Cliffs, Anglo American to sell Brazil Amapa stakes to single entity
(Reuters) - Cliffs Natural Resources Inc (CLF.N) and miner Anglo American Plc (AAL.L) will sell their Amapa iron ore operation in Brazil to a single entity, the largest producer of iron ore pellets in North America said on Thursday.
At least four companies including Glencore International Plc (GLEN.L), Russia's Severstal (CHMF.MM) and Australia's Centaurus Metals Ltd (CTM.AX) were in the race to buy Anglo American's 70 percent stake in the operation, Reuters reported on November 2.
An internal valuation by Anglo American last year put the value of Amapa, in which Cliffs has a 30 percent stake, at $1.5 billion.
Cliffs did not name any potential buyer or the price it expected for its stake. However, the company said the value of Ampala needed to be adjusted to "reflect the fair value of our investment."
The company will take a related charge of about $380 million to $420 million for the year ended December 31, it said in a filing. (link.reuters.com/qyk94t)
Cliffs had invested $479 million in Amapa in northern Brazil as of September 30.
The company said in November it would delay a planned mine expansion in Quebec and idle some production at two U.S. iron ore operations due to weak prices.
The company's shares closed at $38.17 on the New York Stock Exchange. They have fallen 38 percent over the past year.
(Reporting by Krishna N. Das; Editing by Sriraj Kalluvila)