Cliffs’ Bloom Lake targets said impossible
Aug 25, 2014 | 06:24 PM
| Nat Rudarakanchana
NEW YORK The New Jersey Treasury Departments investment division has provided details of alleged securities fraud at Cliffs Natural Resources Inc. regarding the development of its Bloom Lake iron ore mine in Quebec based on interviews with 28 confidential witnesses.
The investment division has alleged that former Cliffs executives misled investors and the public about progress at the Bloom Lake project by failing to disclose serious operational problems, according to documents filed in U.S. District Court in Ohio.
Multiple shutdowns at Bloom Lake means that publicly stated production targets were "mathematically impossible" to achieve, the investment division alleged. It also claimed there were severe problems with transportation and equipment, including a concentrate machine and a rail track, and little sophisticated financial modeling of the sort that could back the sustainability of a heightened Cliffs dividend.....
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