MinRes comes to the rescue of Koolyanobbing

Mining News - The Koolyanobbing iron ore operation near Southern Cross in Western Australia has found a saviour in Mineral Resources (MinRes).
US-based owner Cleveland-Cliffs, which was working towards closing Koolyanobbing this year, announced overnight that it had reached an agreement with MinRes to sell its Asia-Pacific iron ore assets.
The deal is expected to save hundreds of jobs, both at the Koolyanobbing site and at the Port of Esperance where the operation’s product is exported.
While Cliffs did not reveal the value of the deal, it did say that the cost of closing its Australian operation was now expected to be reduced by around $US65-75 million ($86-$99 million), based on MinRes assuming certain obligations.
Cliffs chairman, president and chief executive Lourenco Goncalves said the sale marked the company’s exit from the Australian iron ore business, and represented the final step in the implementation of its US iron ore-centric strategy.
“We are pleased to have reached agreement on a transaction that not only brings real value to Cliffs shareholders, but also represents the potential for continued job opportunities for employees in Western Australia who would be impacted by the pending closure of the Koolyanobbing complex,” Goncalves said.
The deal, which is supported by the Western Australian Government, is expected to close by the end of this quarter.
Cliffs announced in January that it was planning to accelerate the closure of its Asia Pacific operations in 2018 after evaluating current and anticipated future market conditions in connection with its iron ore reserves.