Cliffs Natural Slashes Dividend, To Cut Salaries

The company is also suspending its 401(k) contribution for all salaried personnel. In total, it expects the salary cuts and retirement plan suspension to save $15 million this year.

It didn't say when it would reinstate its retirement plan contributions or raise salaries again, noting it is "committed to continuously monitoring the macro and industry environments and would make reinstatements as conditions warrant."

It expects to use the proceeds of the public offering for general purposes that could include capital expenses, paying down debt or "strategic transactions."

In a filing with the Securities and Exchange Commission, Cliffs said it currently expects it will have to spend between $8 million and $10 million to replace waste lines at one of the plants named by the Michigan Department of Environmental Quality. It said it has already cleaned up and made operational changes at both mines but the costs had not been significant so far.

The company also expects the department will wage a civil penalty against it for the alleged improper waste release, but it does not know how much the penalty will be. It doesn't expect, though, that it will have a material negative effect on its financial position or cash flow.