Cliff’s Natural Resources to Record $6 Billion Charge on Coal, Iron Asset Write Down

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.

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