The Rising Influence of Rising Affluence

[DewDiligence]

CLF puts up For Sale sign on “non-core” assets:

http://online.wsj.com/articles/cliffs-ceo-non-core-assets-for-sale-at-right-price-1409003129

Cliffs Natural Resources Inc. 's new chief executive says he wants to sell less-profitable mining assets at the right price, rather than separate into two firms.

…Cliffs's U.S. mines have benefited from the resurgence of the Detroit auto industry, drill-pipe demand for natural gas wells [thanks to the surge in shale drilling], and their geographical advantage over iron ore superpowers Brazil and Australia [for iron ore consumed by US steelmakers]. Other Cliffs assets, such as coal mines in the U.S., iron ore assets in Australia and Canada and a suspended chromite project in Canada, have been less profitable [a major understatment].

…In an interview, Mr. Goncalves said he would treat those less-profitable assets as "noncore" and seek to turn them around while entertaining offers to sell. "If somebody offered me a train of money for the U.S. iron ore assets, I would not sell, because that is core" he said.