Cliffs Natural to dispose of Michigan biomass facility
Sep 27, 2011 - US miner Cliffs Natural Resources Inc (NYSE:CLF) said today that its board had agreed to start looking for a buyer for its biomass production plant in Michigan.
Via the move, the company seeks to focus its efforts on its core iron mining operations. Following the decision, Cliffs expects to record a non-cash pretax charge of USD 30 million (EUR 22m) in the third quarter of 2011.
The facility in Michigan makes high-energy biofuel cubes from wood and agricultural feedstock. Construction of the plant was completed early in 2011 and it went through its commissioning phase in the first half of the year.
"Since initial production the plant has not performed to design capacity, nor at a production level that justifies continued operation," Cliffs said.