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In the prior year's third quarter, Oak Grove sales were higher due to catch-up commitments related to the severe weather damage force majeure.
The decrease was partially offset by higher sales at Cliff’s Pinnacle mine and Logan County mine that both reported strong production volumes.
Cliffs’ North American coal revenues per ton were down 23% to $US98.95, versus $128.88 in the third quarter of 2012.
The year-over-year decrease was primarily driven by lower market pricing for metallurgical coal products and customer mix. The decrease in market pricing was partially offset by favourably-priced annual and carryover contracts.
Cash cost per ton decreased 34% to $76.16, from $114.56 in the year-ago quarter. The decrease was primarily due to improved production volumes and the resulting favourable impact on the mine's cost-per-ton rate, as well as lower maintenance and contractor spending.
The company expects China to maintain its healthy steelmaking pace, driven by broader economic growth and the positive impact of domestic lending policy reforms.
It also expects pricing for the commodities it sells to remain volatile, with the potential to significantly increase or decrease at any point in time.
