Cleveland-Cliffs, iron ore giant, pins U.S. coal hopes on PinnOak

摘要

PinnOak Resources, LLC has signed a definitive agreement for the company and its operating subsidiaries to be acquired by Cleveland-Cliffs, the largest producer of iron ore pellets in North America. Cleveland-Cliffs agreed to acquire PinnOak and its subsidiary operating companies, for 450 million dollars in cash plus approximately 150 million dollars in debt. Privately owned PinnOak produces low-vol coking coal in Alabama and West Virginia. Payment of 25 percent of the cash portion will be deferred until December 31, 2009. The transaction is expected to close within 60 days and is subject to regulatory clearances. "We are excited with the opportunity that this transaction presents to our company and employees," Benjamin M. Statler, executive chairman of PinnOak, said. "Working with Cliffs, a global leader in iron ore mining and processing, will position the combined company as a valuable supplier to the international steel industry."