Cliffs marked its diversification into seaborne coking and thermal coal—and yet another springboard for growth—in partnership with Australian coal company QCoal Pty Ltd., by acquiring a 45 percent economic interest in the high-potential Sonoma Coal Project. Cliffs will operate and own 100% of the washplant and 8.3% of the mining leases. Located at the northern end of Queensland, Australia’s Bowen Basin coalfields, the project presents a good fit with Cliffs’ operational competencies and an ideal means for Cliffs to expand its presence in the Australian mining sector, as well as broaden its participation in the steelmaking materials industry.
When completed, Sonoma is expected to initially produce two million tonnes of marketable coal annually, with annual production of marketable coal ramping to between three million and four million tonnes from 2008. Sonoma currently has estimated reserves of 107 million tonnes. The Cliffs Asia-Pacific business unit, located in Perth, Australia, will oversee Cliffs’ interest in this and other opportunities in high-growth emerging markets from its Australian production base.
