In a conference call on October 28, Cliffs Chairman, President, and CEO Lourenco Goncalves emphasized that the Bloom Lake mine lacks sufficient volume to be profitable at its current 7- million-mt/y, phase I operating rate. Negotiations were under way with potential steel company partners to invest in a phase II approximate doubling of production, with a goal of having an agreement in place by year-end 2014. However, if such an agreement is not achieved by year-end, Bloom Lake will be shut down, Goncalves said.

The Wabush Scully mine was shut down at the end of the first quarter of 2014.

Goncalves emphasized that Cliffs’ core business—its United States Iron Ore mining and pelletizing operations in northern Michigan and Minnesota— demonstrated remarkable strength in the third quarter. Those operations on their own generated more EBITDA than the company as a whole on a consolidated basis, Goncalves said.

Cliffs reported consolidated thirdquarter 2014 revenues of $1.3 billion— down $248 million, or 16%, from the prior year’s third quarter. The lower revenues were primarily driven by a 32% reduction in market pricing for iron ore and a 17% reduction in market pricing for metallurgical coal.

Due to the asset impairment charges, Cliffs recorded a net loss for the quarter attributable to its common shareholders of $5.9 billion. Excluding impairment charges and other items, Cliffs reported third-quarter adjusted net income of $33 million, or $0.21 per diluted share, compared to an adjusted net income of $144 million, or $0.88 per diluted share, in the prioryear quarter.