Cliffs To Pay $88 Million To Buy Out Wabash Mines JV Partners

   DOW JONES NEWSWIRES 
 

Cliffs Natural Resources Inc. (CLF) announced it will exercise its right of first refusal to purchase the 73% stake in a joint venture with United States Steel Corp. (X) and ArcelorMittal SA (MT, MT.AE) for $88 million.

Cliffs shares rose 1.5% to $36.06.

The announcement comes three days after Consolidated Thompson Iron Mines Ltd. (CLMZF, CLM.T) offered to buy the Wabush Mines joint venture from the three owners for $120 million. U.S. Steel and ArcelorMittal accepted the offer on the condition that Cliffs not exercise its right of first refusal.

ArcelorMittal said Friday its 29% stake in the venture was no longer a core part of its mining strategy. Last year, the company filed a lawsuit in Canada against Cliffs and U.S. Steel, saying they had reneged on a deal to let ArcelorMittal buy them out.

Wabush Mines owns and operates iron ore mining and pellet facilities in Newfoundland, Labrador and Quebec, Canada. By owning all of the venture, Cliffs said its annual North American iron-ore production capacity will increase some 4 million tons. Cliffs has projected 2009 sales in the region of about 16 million long tons. There are some 75 million tons of proven reserves at Wabush Mines.

-By Kevin Kingsbury; Dow Jones Newswires; 201-938-2136; [e-mail]