Casablanca outlines plan for Cliffs

Jun 26, 2014 | 05:08 PM | Nat Rudarakanchana

Tags  Cliffs Natural Resources, Casablanca Capital, iron ore, supply chain, iron ore, mining, proxy contest, Lourenco Goncalves Bloom Lake Mine

NEW YORK — Battle lines for control of Cliffs Natural Resources Inc. have deepened, with activist investor Casablanca Capital LP outlining its most detailed reorganization plan to date for the largest U.S. iron ore mining company.

The New York-based hedge fund released a 120-page investor presentation June 26, complete with a series of satirical cartoons attacking Cliffs’ executives.

The presentation specified what Casablanca’s candidate for chief executive officer, Lourenco Goncalves, would do in his first 90 days at the helm: order several major internal reviews, suspend capital expenditures on the controversial Bloom Lake Mine project in Quebec and explore sales of Cliffs’ assets—especially those outside the U.S. or unrelated to iron ore—as well as focus on the domestic opportunities afforded by direct-reduced iron.

The hedge fund has sought to appoint six of its own candidates to Cliffs’ 11-member board, although one Casablanca nominee withdrew June 26 in the wake of an unrelated board appointment.....





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