Iron and coal miner Cleveland-Cliffs Inc. will buy coal producer Alpha Natural Resources Inc. for nearly $10 billion in a move to boost its role as a supplier to the steel industry. The boards of both companies have approved the deal. The combined company will be named Cliffs Natural Resources and own nine iron-ore facilities and more than 60 coal mines in North and South America and Australia. The company expects annual sales volume of more than 30 million tons of iron ore and nearly 18 million tons of metallurgical coal, making it one of the largest suppliers to the steel industry.
Cleveland-Cliffs’ Board of Directors has approved a capital project at its Empire and Tilden mines in Michigan’s Upper Peninsula. The project is expected to allow the Empire Mine to produce 3 million tons annually through 2017 and increase Tilden Mine production by more than 2 million tons annually.
Cleveland-Cliffs to Buy Alpha for Nearly $10 Billion
July 17, 2008