Cliffs To Restart United Taconite, Raises 2016 Sales Outlook
Zacks Investment Research | Jun 09, 2016 09:02PM ET
Cliffs Natural Resources Inc. (NYSE:CLF) declared that it will will restart operations of the United Taconite mining facility (UTAC) in Minnesota in August, which is two months earlier than Oct 2016, as planned earlier. United Taconite comprises an iron ore mine and a pellet processing plant.
The early restart was spurred by the signing of a contract with U.S. Steel Canada to meet the majority of their iron ore pellet requirements during the third and fourth quarters of 2016. The sales volume of the new iron ore pellet order by U.S. Steel Canada will be much higher than Cliffs’ prior expectation.
Cliffs has thus revised its 2016 sales volume guidance to 18 million long tons from the previous guidance of 17.5 million long tons. Further, 2016 production volume guidance has been increased by 500,000 long tons to 16.5 million long tons.
Steel companies, mainly in North America, are enjoying a higher volume of orders from their suppliers of high-quality iron ore pellets of late. As a result, Cliffs has witnessed a significant improvement in its business with existing and new clients.
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