Cliffs Natural Resources Inc. (CLF:US), the U.S. iron-ore producer under pressure from one of its largest shareholders to pursue a breakup, cut its planned capital spending by about 25 percent after the price of the commodity slumped.
Full-year capital expenditure will now be $275 million to $325 million, the Cleveland-based company said today in a statement. Most of the reduction will affect Cliffs’ eastern Canadian iron-ore and North American coal operations. The cut deepens a reduction announced in February from $862 million spent last year.
“These actions are appropriate during this volatile pricing environment,” Chief Executive Officer Gary Halverson said in the statement.
Cliffs, the largest U.S. producer of the steelmaking raw material, is being pressed by hedge fund Casablanca Capital LP to spin off foreign assets and double its dividend. Casablanca, which according to data compiled by Bloomberg holds a 5.2 percent stake in Cliffs, said in February it was backing Lourenco Goncalves as CEO.
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