Shares of Cliffs Natural Resources (CLF) surged almost 5% in Wednesday morning trading after the company announced a management shake-up.
The iron ore and coal producer announced that CEO and President Joseph Carrabba will retire by the end of the year. He is being immediately replaced as company chairman by James Kirsch who will serve as non-executive chairman. The company’s executive vice president and president of global operations has also resigned for unspecified reasons and has already left the company, Crain’s Cleveland Business notes.
An executive search firm has been hired to locate a new CEO. As soon as a successor is found, Carabba will resign as president and CEO and leave the board.
Cliffs shares have tumbled over the past year. Problems with its $3.3 billion Canadian chromite project led the company to temporarily suspend environmental evaluation work on the project in recent weeks.