CLEVELAND - Cliffs Natural Resources Inc. (NYSE:CLF) says delays and unanticipated costs following its acquisition of Consolidated Thompson Iron Mines will require more than US$1 billion of non-cash writedowns.
The U.S. miner company bought Consolidated Thompson and its majority stake in the Bloom Lake open pit iron mine in Quebec in 2011 for $4.9 billion.
The global economy has slowed since then and demand for steel and iron has fallen, pushing down iron ore prices.
Cliffs said Thursday that it would write down the value of Consolidated Thompson by US$1 billion in its fourth-quarter results — primarily because of lower long-term volumes to be produced by it as well as higher costs.
The company also expects between $100 million and $150 million of other charges related to its Eastern Canada iron ore business segment.
Elsewhere, the company plans to reduce the value of two tax-related assets in Australian and the United States by a total of $542 million.