"I am very pleased to be able to sell these assets to Coronado Coal, an experienced West Virginia-based coal operator, Cliffs chairman, president and CEO Lourenco Goncalves said.

“This transaction is another important step in executing our strategy to transform Cliffs into a stronger, pure-play US iron ore supplier.”

The deal, which also involves Coronado agreeing to take on “certain liabilities”, requires regulatory approvals with the transaction expected to close by late 2014.

Cliffs is also preparing to book a $375-425 million pre-tax loss on the sale of the LCC assets for this quarter.

Cliffs plans to use the LCC transaction proceeds to repay debt, which is more than $3 billion.