CLEVELAND, Ohio – Cliffs Natural Resources is slashing its 2014 capital expenditure budget by more than 50%. This year it has a budget of between US$375 million and US$425, compared to the US$862 million it spent in 2013.
Late last year, Cliffs curtailed exploration activity at the Big Daddy chromite project in Ontario's Ring of Fire. Now the company has announced that the expansion of the Bloom Lake iron ore mine in Quebec will not go forward. Spending at Bloom Lake in 2014 will be only US$200 million, including a US$65 million carry-over from last year.
The Wabush Mines operation in Labrador is to be idled in Q1 2014 because of skyrocketing production costs. The company anticipates it will cost US$100 million this year to idle the operation, and it will take a write-down of US$183 million against the property. Cliffs ceased production at its Point Noire, QC, pellet plant in June 2013.
Find contact information for the company at CliffsNaturalResources.com.