Coal assets

Cliffs Natural Resources has completed the sale of its remaining US metallurgical coal mines in West Virginia and Alabama to Seneca Coal Resources for $268m.

As part of the deal, the company sold its Pinnacle and Oak Grove mines.

Cliffs earlier concluded the sale of its Logan County Coal assets in West Virginia to Coronado Coal in January 2015 for $174m in cash, as well as the assumption of certain liabilities.

"Seneca Coal may also pay an earn-out of up to $50m to Cliffs depending on the terms of a revenue sharing plan."

Seneca Coal may also pay an earn-out of up to $50m to Cliffs depending on the terms of a revenue sharing plan, which would extend through 2020.

Cliffs Natural Resources chairman, president and CEO Lourenco Goncalves said: "The sale of Pinnacle and Oak Grove to Seneca Coal marks Cliffs’ exit from the coal business, and represents another very important step in the implementation of our US iron ore pellet-centric, environmentally compliant strategy.

"We are pleased to have found a buyer that was able to agree on a transaction that not only brings real value to Cliffs shareholders, but will also preserve jobs for the exceptional people at these two mines."

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Cliffs said that the deal structure is a sale of the equity interests of its remaining coal business.

Image: Cliffs is to sells its Pinnacle and Oak Grove coal mines in the US to Seneca. Photo: courtesy of SOMMAI /