Miner Cliffs seeks creditor protection for more Canadian iron ore assets

Wed May 20, 2015 6:20pm EDT
 
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May 20 (Reuters) - Cliffs Natural Resources Inc said on Wednesday it was seeking court protection from creditors of its Wabush iron ore mine and related assets in Eastern Canada, four months after it sought similar protection for its other Canadian iron ore assets.

The U.S.-based iron ore and coal miner said it had concluded that a "more comprehensive restructuring and sale process" would result if it was able to include the Wabush group under the same creditor protection it obtained in January for its larger Bloom Lake iron ore assets in Quebec Superior Court.

It would also allow Cliffs a more "streamlined exit" from Eastern Canada, the company said in a filing with the U.S. Securities and Exchange Commission.

Cliffs, along with other iron ore miners globally, has been slammed by a collapse in the iron ore price on the back of a supply glut and lower demand from chief customer China.

Cliffs idled its Wabush operations in the province of Newfoundland and Labrador in the first quarter of 2014 as the miner sought to cut costs. The Wabush operations consist of mine, rail and port assets.

Cliffs in January became the third major U.S. company in six months to seek creditor protection for its Canadian arm to try to isolate losses and protect shareholders. (Reporting by Nicole Mordant in Vancouver; Editing by David Gregorio)