Cliffs reduces 2011 ore prices, volume outlook

(AP) CLEVELAND — Iron ore and coal mining company Cliffs Natural Resources Inc. said on Thursday pricing and volume for ore shipped in the fourth quarter was coming in at the low end of its previous expectations, and its shares fell in after-hours trading.

Cliffs said 2011 prices of U.S. iron ore would be about $120 per ton for the fourth quarter, driving its full-year pricing toward the low end of its revenue per ton guidance of $135 to $140. The fourth-quarter rate was hurt by the mix of ore it shipped and retroactive price adjustments on some contracts.

It also said full-year volume of 7.4 million tons from its Eastern Canadian iron ore unit would be below its previous guidance of 8 million tons. The company had operational problems at its Wabush Mine, including equipment outages. It said revenue per ton from the mine would be slightly below its prior guidance.

Volume from its Asian iron ore mines would be 8.6 million tons for the year, down from its previous estimate of 8.8 million tons. However, it expected to report cash per ton of $66 from those mines, up from its previous estimate of $60 to $65 per ton.

On a brighter note, coal production and revenue per ton from North America was higher than expected, the company said.

Cliffs plans to report its fourth-quarter results on Feb. 15.

Cliffs shares had fallen $1.37 to close at $75.18 before the updated outlook was released. They fell another $2.18, or 2.9 percent, to $73 in aftermarket trading.