The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

CLF....

Dewophile... thanks for the reassuring words suggesting that I should not be overly concerned about CLF meeting its predicted cost reductions at Bloom Lake... Meeting those predictions will go a long way towards restoring my faith in management. Never the less, I still am not certain what higher operating costs are being referenced in the Jan 14 News Release; i.e.

CLEVELAND – Jan. 24, 2013 – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced that as a result of its goodwill impairment test conducted in the fourth quarter of 2012, the Company has determined that approximately $1 billion of goodwill related to Cliffs’ 2011 acquisition of Consolidated Thompson Iron Mines Limited is impaired. The goodwill impairment charge will be recorded as a non-cash expense for the year ended Dec. 31, 2012. The impairment is primarily driven by the project’s anticipated lower long-term volumes and higher capital and operating costs. The previously announced delay of the Phase II expansion of the Bloom Lake mine also contributed to the impairment. Cliffs also indicated it expects to incur $100 — $150 million of other charges related to its Eastern Canadian Iron Ore business segment.

And, like you, I look forward to the specifics of the $100-150M other charges related to the Eastern Canadian Iron Ore business.