Cliffs Natural Resources Inc. (NYSE: CLF) expects to idle its Wabush Pointe Noire pellet plant within the city of Sept-Iles in Quebec by the end of the second quarter of 2013.

The company said high production costs and lower pellet premium pricing are responsible, and those conditions are expected to persist in certain markets during the year.

"Due to the dynamics in the marketplace, we are taking measures to adjust our iron ore pellet production at our Wabush operation while continuing to meet our customer commitments," Joseph A. Carrabba, Cliffs' chairman, president and chief executive officer said in a news release. The decision will affect 165 employees.

Cliffs expects to idle production at its Pointe Noire iron ore pellet plant and transition to producing an iron ore concentrate only product from its Wabush Scully mine in the Province of Newfoundland and Labrador by the end of the second quarter in 2013.

"We are taking a long-term view of our investments in Canada. These measures address current market conditions and we look forward to advancing our work at Bloom Lake which is key to Cliffs' future," Carrabba said.

Cliffs is maintaining its full-year sales and production volume expectations of 9 - 10 million tons out of its Eastern Canada business segment. Full-year 2013 cash cost per ton in Eastern Canadian iron ore is expected to be $95 - $100, down from the company's previous expectation of $100 - $105. For full-year 2013, cash cost per ton at Wabush is expected to be $115 - $120. The company is maintaining its full-year 2013 Eastern Canadian Iron Ore revenue-per-ton expectation of $120 - $125.

• Minnesota Power to fully restore flood-damaged hydro system - 6/19/2013
• Twin Metals sets open house to celebrate building completion - 6/18/2013
• U.S.-flag vessels have strong month - 6/17/2013
• Ascena reports higher sales, lower net - 6/17/2013
• Perfect Duluth Day to celebrate first 10 years - 6/17/2013