US' Cliffs agrees to sell Australian iron ore mine

US mining firm Cleveland-Cliffs has agreed to sell its Asia-Pacific iron ore assets to Australia's Mineral Resources, including the 12mn t/yr Koolyanobbing mine in Western Australia.

Cliffs had previously planned to shut down the mine in June, as it struggled to compete with larger operations in the Pilbara region. But the Australian government stepped in in mid-May to facilitate its sale in an attempt to avoid job losses.

"The sale of these assets to Mineral Resources marks Cliffs' exit from the Australian iron ore business, and represents the final step in the implementation of our US iron ore-centric strategy," Cliffs chief executive Lourenco Goncalves said.

The Koolyanobbing mine produces iron ore fines and lump for sale in the Asia-Pacific market, which is transported by rail for shipment from the port of Esperance.

The finalisation of the sale is subject to certain conditions, and is expected before the end of June.