The existing mine manager, Sonoma Mine Management, will continue to be responsible for overseeing the operation with no disruptions, according to Cliffs.

Cliffs' chairman, president and chief executive officer Joseph Carrabba said: "Cliffs continues to make capital allocation decisions through a process focused on driving top-quartile total shareholder return for our shareholders.

“This transaction reinforces our strategy to direct management and capital resources towards long-lived expandable assets where Cliffs has operational control."

In addition to QCoal, the Sonoma joint venture is comprised of three other participants: JS Sonoma, CSC Sonoma and Watami.

Subject to terms of the existing joint venture agreement, each participant has the right to acquire their pro rata share of Cliffs' interest in the Sonoma joint venture on the terms and conditions of the sale agreement under which QCoal has made its offer to acquire.

The participants have 60 days from the date the notice is given to accept the offer. To the extent that the other participants do not exercise their right to acquire their pro rata share of Cliffs' interest, QCoal will acquire those pro rata interests.

On a 100% basis, Sonoma's 2011 production and sales volumes totalled 3.5 million tonnes and 3.1Mt of coal, respectively. The product mix was approximately two-thirds thermal coal and one-third metallurgical coal.

Cliffs declared yesterday a quarterly cash dividend on the company's common shares of $0.625 per share. The cash dividend will be payable on August 31 to shareholders of record as of the close of business on August 15.