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Cliffs Natural Resources, Essar Steel Reach Settlement
04/29/2016 - Canada’s Essar Steel Algoma has settled its dispute with iron ore miner Cliffs Natural Resources over their pellet supply agreement, the steelmaker has announced
The settlement, which is pending court approval, resolves all of the claims between the companies, Essar said in a statement.
"We are very pleased to have this litigation behind us and are grateful for the focused efforts of all involved in facilitating a speedy resolution,” Essar Steel Algoma chief executive Kalyan Ghosh said in a statement.
The settlement calls for Cliffs to supply a portion of the company's remaining 2016 pellet requirements and then resume shipments under the agreement's terms in 2017 and beyond.
Cliffs terminated its contract with Essar last year, citing “multiple and material” breaches of the agreement. Essar subsequently entered creditor protection under Canada’s Companies’ Creditors Arrangement Act.
Essar remains under creditor protection and is continuing to seek a buyer or new investors.
Ghosh said the settlement should help that effort.
“In light of the current sale and investment solicitation process, this agreement provides interested parties with assurance of supply of quality iron ore, and ensures Algoma can remain a low-cost producer."
"We are very pleased to have this litigation behind us and are grateful for the focused efforts of all involved in facilitating a speedy resolution,” Essar Steel Algoma chief executive Kalyan Ghosh said in a statement.
The settlement calls for Cliffs to supply a portion of the company's remaining 2016 pellet requirements and then resume shipments under the agreement's terms in 2017 and beyond.
Cliffs terminated its contract with Essar last year, citing “multiple and material” breaches of the agreement. Essar subsequently entered creditor protection under Canada’s Companies’ Creditors Arrangement Act.
Essar remains under creditor protection and is continuing to seek a buyer or new investors.
Ghosh said the settlement should help that effort.
“In light of the current sale and investment solicitation process, this agreement provides interested parties with assurance of supply of quality iron ore, and ensures Algoma can remain a low-cost producer."
