CLEVELAND, Ohio — Cliffs Natural Resources has announced its exit from the coal business.

Officials from the Cleveland-based company say the sale of the Pinnacle Mine in West Virginia and the Oak Grove Mine in Alabama to Seneca Coal Resources, LLC, was closed on Tuesday. The company values the transaction at closing at $268 million based on Seneca Coal assuming all liabilities of the business. Additionally, Seneca Coal may pay Cliffs an earn out of up to $50 million contingent upon terms of a revenue sharing plan that extends through 2020.

In a statement released by the company, Lourenco Goncalves, who serves as Chairman, President, and CEO of Cliffs, called the sale “another very important step in the implementation of our US iron ore pellet-centric, environmentally compliant strategy.” He also expressed satisfaction that the sale would both bring value to Cliffs shareholders and preserve jobs for those employed at the two coal mines.