The asset is non-performing so getting the cash will be a positive to fund Bloom lake and or reduce debt. BDI is up another capes up 2000$ a day which are IO specific carrier vessels. I would like to see CLF sell their Australian assets for 500 million and get bloom up and running at full capacity by 2014 2015. Those interested in Dry Bulk see BALT. just closed secondary net debt under 60million and a excellent dividend policy with rates up payout could go to .50-.60 by year end
Why would selling the Australian asset for $500 million help Clf ? That mine sells an estimated 11 million tons of iron ore a year? Given iron ore spot average pricing of $130 for a year a years worth of operations yields $1.4 billon. I think your estimate is a little low. This is not an inactive mining operation with problems but a fully functioning mine. I would not sell this asset. I think selling is a fools game. Better off keeping it and using the cash to pay of debt or incur more debt.