Cliffs To Buy Partners' Stake In Wabush Mines

CLEVELAND (AP) — Cliffs Natural Resources Inc. on Monday said it will buy the rest of the Wabush Mines in Canada for $88 million from its joint venture partners U.S. Steel Canada and ArcelorMittal Dofasco.

Friday, Consolidated Thompson Iron Mines Ltd. agreed to buy both U.S. Steel Canada's 44.6 percent stake and ArcelorMittal Dofasco's 28.6 percent stake for $88 million cash.

Cliffs is acquiring the assets by exercising its right of first refusal. It is entitled to complete the deal on the same terms as Consolidated Thompson.

With Wabush Mines' 5.5 million tons of rated capacity, the acquisition will increase Cliffs' North American iron ore rated equity production capacity by about 4 million tons.

At the end of 2008, Wabush Mines had 75 million tons of proven reserves and over the previous five years had produced between 2.8 million and 5.2 million tons of iron ore pellets annually. Its mines and plants are located in the Canadian provinces of Quebec and Newfoundland.

Shares of Cliffs Natural Resources rose 99 cents, or 2.8 percent, to $36.52 in morning trading.