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Cliff’s Natural Resources to Record $6 Billion Charge on Coal, Iron Asset Write Down
Oct. 17, 2014 09:27AM PST
Industrial MetalsReuters reported that Cliff’s Natural Resources (NYSE:CLF) will include a non-cash charge of $6 billion for its third quarter in a move to write down some of its coal and iron assets. The assets have lost value due to weak market prices, according to the company.
Reuters reported that Cliffs Natural Resources (NYSE:CLF) will include a non-cash charge of $6 billion for its third quarter in a move to write down some of its coal and iron assets. The assets have lost value due to weak market prices, according to the company.
As quoted in the publication:
Cliffs Natural replaced it chief executive in July and said it would sell underperforming assets after New York-based fund Casablanca Capital triumphed in a proxy battle.
Coal prices have halved over the past three years as a result of sluggish demand and rising output from Australia, Indonesia, South Africa, Colombia and the United States.
Iron ore prices sank to a five-year low last month as output fromAustralia and Brazil continues to rise even as top ConsumerChina imports less.