Boston, MA 10/16/2013 (wallstreetpr) – Cliffs Natural Resources Inc (NYSE:CLF) is set to announce its third quarter results on October 24, 2013. In anticipation of good results, the shares closed at $22.64 up by 4.09%. The shares fluctuated between $21.93 and $23.40. The 52 week high is at $46.50 and 52 week low is at $15.41. The shares crossed their 200 day moving average (DMA) of $23.37. An upward movement is indicated on Wednesday also. The shares have appreciated by more than 23% in the last three months.
Cliffs is facing a peculiar issue in its $3.3 billion Chromite mining and smeltering project in Ontario. The project is at an advanced exploration stage in all the three defined deposit areas. Chromite is used in the manufacture of stainless steel and gives the company a good diversification avenue. The company is currently an iron ore and metallurgical coal producer. It has assets in the U.S. and Canada.
The Chrome mine is located in the remote northern reaches of Canada. There are no highways connecting the location with the nearest major city of Thunder Bay. The company had proposed the construction of an all-weather north-south road and had also entered into a conditional agreement with the Ontario government for financial assistance. However, the proposed road would have passed through the mines of KWG Resources. The company had good relations with KWG resources and also had cross holding with them. The relations soured due to differences in opinion. KWG Resources refused permission for the road project as it would interfere with its mining projects. KWG Resources is also planning to develop a railroad to take care of its transportation needs. Though railroads are more expensive to build, they are economical in the long run. Transportation by road would cost $60.78 per million tonnes shipped against $10.50 by rail. Any increase in volumes would lead to a drastic fall in costs in railroad. Till there is a solution to this issue, Cliffs has stopped all further work at the site.
