Activist hedge fund firm Casablanca Capital nominated former Metals USA chief Lourenco Goncalves for the CEO position at Cliffs Natural Resources.
Casablanca co-founder Donald Drapkin told the Wall Street Journal that the hedge fund, which has a 5.2% stake in the Cleveland-based iron ore producer, that the firm is “confident Goncalves will bring the strategic and operational skills needed to effect urgent change and restore the fundamental value in Cliffs.”
Goncalves, a 30-year veteran of the metals and mining industry, has agreed to be a Casablanca director nominee. He recently made a personal investment of approximately $1 million in Cliffs shares.
Last month, Casablanca pushed for Cliffs Natural to consolidate its Bloom Lake mine together with the rest of its Eastern Canadian assets and its Asia-Pacific business to create Cliffs International, calling the iron ore producer’s international business “riskier” than its domestic operations.