Newly-named Cliffs Natural Resources Inc. (NYSE:CLF) is slowing production at two of its Minnesota iron ore mines in order "to bring production in line with demand." Three furnaces capable of producing 300,000 tons of pellets a month will be shut down. That’s an annualized reduction of nearly 30% at the two locations and about 16% of total North American annual production.
The company said the shutdown will begin immediately and will "resultin workforce adjustments at the locations." The president of thecompany’s North American business unit attributed the shutdown to lowersteel production resulting from the slowdown in the North Americaneconomy.
Cliffs has scheduled a shareholder vote on its proposed merger withAlpha Natural Resources (NYSE:ANR). Alpha shareholders are alsoscheduled to vote on the offer next month.
Maybe slowing production isn’t so bad. The interests of shareholdersare often different than those of employees and local economies.Cliffs shares are up 2% at $22.69.
Paul Ausick
October 28, 2008
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
