Cliffs said it plans to finance the $757m acquisition through available liquidity, including cash on hand and the company’s $600m credit facility. The transaction is expected to close within 60 days and is subject to customary closing conditions, including Hart-Scott-Rodino review.
The acquisition includes a metallurgical and thermal coal mining complex with a coal preparation and processing facility located in southern West Virginia. This includes a large reserve base with an estimated 68 million tons of metallurgical coal and 51 million tons of thermal coal.
This reserve base is expected to increase Cliffs’ total global reserve base to over 175 million tons of metallurgical coal and over 57 million tons of thermal coal.
