Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Cliffs Natural Resources (NYSE: CLF) vaulted to a record third quarter from a springboard of high iron ore prices combined with higher sales from its recently acquired Bloom Lake operation, the company announced today.
Cliffs posted a 59% increase in revenues from the same period last year, bringing in $2.1 billion. The company more than doubled (+110%) its net income in Q3 to $820 million, despite taking a $17.5 million net loss from the idling of its renewaFUEL biomass production facility in Michigan.
Despite the sunny financial picture, Cliffs indicated that clouds are looming on the horizon in the markets for its principal commodities, iron ore and coal.
The company slashed its 2011 guidance for sales of US iron ore from 25 to 24 million tons, while output from its Eastern Canadian operations is expected to drop from 9 to 8 million tons. For the Asia Pacific, Cliffs is maintaining its full-year expected sales volume of approximately 8.8 million tons and production volume of approximately 9 million tons.
A somewhat smaller bite is being taken from the coal forecast.
Cliffs said it is cutting its 2011 North American coal sales volume by half a million tons to 4 million tons due to lower anticipated sales from its Oak Grove Mine. Full-year coal production is pegged at 4.9 million tons.
Read the full news release here
Image of Cliffs Northshore Mine, Copyright © 2011 Cliffs Natural Resources Inc.
