Jan 3 Cliffs Natural Resources Inc and
miner Anglo American Plc 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
, Russia's Severstal and Australia's Centaurus
Metals Ltd were in the race to buy Anglo American's 70
percent stake in the operation, Reuters reported on Nov. 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
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
The company will take a related charge of about $380 million
to $420 million for the year ended Dec. 31, it said in a filing.
Cliffs had invested $479 million in Amapa in northern Brazil
as of Sept. 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.