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Cliffs Natural Resources
Cliffs Provides Update on 2008 North American Iron Ore Sales Volume
Jan. 14, 2009 Cliffs Natural Resources Inc. provided a 2008 sales volume update for its North American Iron Ore business segment.
Cliffs reported in the update that it had received cash payment for nearly 24 million tons of iron ore sales in 2008. However, due to the timing of shipping schedules with certain customers, under accounting guidance for “bill and hold” sales, revenue recognition for approximately 1.2 million tons of iron ore will be deferred until the product is delivered in 2009.
Cliffs said the accounting would have no impact on cash generated from operations, but pre-tax earnings in 2008 would be lower by approximately $50 million.
Headquartered in Cleveland, Cliffs Natural Resources Inc is an international mining company, the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steelmaking industry. The company operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and three coking coal mines in West Virginia and Alabama. Cliffs also wholly owns Portman Limited, a large iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. In addition, the company has a 30% interest in the Amapá Project, a Brazilian iron ore project, and a 45% economic interest in the Sonoma Project, an Australian coking and thermal coal project.