Jan 24 (Reuters) - Cliffs Natural Resources Inc said it would write down the value of Consolidated Thompson Iron Mines Ltd by $1 billion as it expects lower volumes and higher costs in the business that was bought for C$4.07 billion in 2011.

Cliffs, the largest North American producer of iron ore pellets used in steel making, will take the charge in the fourth quarter. Cliffs will announce its fourth-quarter results on Feb. 13.

Cliffs bought Canada's Consolidated Thompson to expand its capacity to feed Asia's growing appetite for iron ore.

Iron ore prices, however, have fallen in recent months due to weak demand for steel from China, the world's largest producer and consumer of steel. A persistently oversupplied market has pressured prices.

Cliffs said the delayed expansion of a mine in Quebec added to the massive charge. The company said in November that it would put off plans to expand portions of its Bloom Lake Mine due to weak prices.

Cliffs also said it expected to incur $100 million to $150 million of other charges related to its Eastern Canadian Iron Ore business.

The company said it expected to record an impairment expense of $365 million in its fourth-quarter results in connection with the 30 percent stake it sold in an iron ore operation in Brazil earlier this month.