Tacora Resources has signed an “asset purchase agreement” for Wabush Mines, Natural Resources Minister Siobhan Coady announced Tuesday.
The Asset Purchase Agreement is another important milestone in an effort to restart the mine and details the actions and responsibilities required of both Cliffs Natural Resources Inc. and Tacora Resources Inc. (MagGlobal LLC), including the requirement of financial assurance for environmental remediation.
The agreement was signed under the Companies’ Creditors Arrangement Act.
Cliffs Natural Resources, through its subsidiary, currently holds the responsibility and financial risk for environmental remediation and will be held accountable to ensure that continues with any purchaser.
Tacora recently signed a collective agreement with the United Steelworkers.
“The MHA for Labrador West, Graham Letto, and I, along with the team at Natural Resources have been working diligently over the past 18 months to encourage the reopening of Wabush Mine,” Coady said in a statement. “We have been engaged with several interested parties under the CCAA process including Tacora Resources. A key focus during our discussions with interested parties has been to ensure the protection of the people of the province, and in particular Wabush, of the financial liabilities of the site. Cliffs Natural Resources has a financial obligation and a responsibility to ensure the site is restored. We are pleased to see that the asset purchase agreement addresses these requirements and that Tacora will be obligated to provide replacement financial assurance. We look forward to this transaction between Cliffs and Tacora reaching a successful conclusion in the near future.”