Cliffs Natural Resources continues to trim spending. The 2014 capitol expenditures will be slashed by $100 million. This is in addition to a cut of $460 million announced earlier this year.
With the new cuts the 2014 expenditures will total between $275 million to $325 million. Cliffs reports that the cost cutting is in response to volatility in seaborne iron ore and metallurgical coal pricing. The brunt of the new round of cuts will hit the Eastern Canadian Iron Ore and North American Coal with 75% of the reductions.
Cliffs' President and CEO, Gary Halverson, said "Today's announcement reinforces our Board's and leadership team's focus on financial discipline. We continue to identify opportunities to significantly reduce our capital spending while maintaining our expected full-year volume and operating cost targets. Based on 30 years of experience in the highly cyclical mining sector, I believe these actions are appropriate during this volatile pricing environment. Our leadership team and all of our employees are focused on delivering the objectives we can control starting with safety, costs, production volume, and our customer relationships. We expect that this back-to-basics philosophy will generate more value from our current portfolio and, in so doing, will enhance long-term shareholder value."