The Rising Influence of Rising Affluence

[DewDiligence]

CLF announces production cut/layoff in thermal-coal business:

http://finance.yahoo.com/news/cliffs-natural-resources-announces-north-210000731.html

Cliffs Natural Resources Inc. today announced that it is reducing its full-year 2012 thermal coal sales and production volume expectations from 1.1 million tons to approximately 800,000 tons at its Toney Fork No. 2 surface mine in Man, WV. The adjustment is driven by a softer U.S. pricing environment for thermal coal products. The decreased volumes will result in the reduction of 46 hourly positions at the mining operation along with 13 salaried positions within the Company's administrative offices…

Thermal coal ranks a very distant third—behind iron ore and metallurgical coal—among CLF’s most important products and the company has never made any significant money from the thermal-coal business. Thus, this announcement should not affect CLF’s overall prospects to a material degree.

p.s. VALE is divesting some of its own thermal-coal assets (#msg-76098928).