Tacora Resources sign deal for Wabush Mines, N.L. government says

The Newfoundland and Labrador government says an American company has signed an agreement for the purchase of Wabush Mines.

In a news release Tuesday, Natural Resources Minister Siobhan Coady says Tacora Resources signed the asset purchase agreement under the Companies' Creditors Agreement Act.

Wabush Mines has been locked in creditor protection since being shuttered by Cliffs Resources in 2014.

Government said in its release that Cliffs still holds the responsibility and financial risk for the environmental remediation, and will be held accountable for that even after the sale of the mine.

"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," Coady said in a release.

"We look forward to this transaction between Cliffs and Tacora reaching a successful conclusion in the near future."

Last week, a representatives with the United Steel Workers Union said the negotiations between Tacora and Cliffs were about the $50 million bond Cliffs had to put down for the environmental protection of the Scully Mine site.

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"I believe Tacora is saying they [Cliffs Resources] shouldn't get all of that money back, they contributed to the … destroying the land there, the environmental stuff, so they should be keeping some of that money," Tony DePaulo said on June 9.

After months of negotiations, the United Steel Workers Union reached a collective agreement deal with Tacora last week.

Coady said she, as well as Labrador West MHA Graham Letto, have been in negotiations for Wabush Mines over the last 18 months with several interested parties, Tacora Resources being just one of them.