Essar Steel Algoma to Make True-Up Payment for Iron Ore
01/06/2011 - Essar Steel Algoma is making a US $129 Million true-up payment to its iron ore supplier. The amount represents the difference between amounts invoiced in 2010 and the amounts due under the recent arbitration award with respect to a pricing dispute.
Essar Steel Algoma Inc. announced Wednesday that it is making a US $129 Million true-up payment to its iron ore supplier, Cliffs Natural Resources. The amount, according to Cliffs, represents the difference between amounts invoiced in 2010 and the amounts due under the recent arbitration award to Cliffs with respect to a pricing dispute.
Essar Steel Algoma is paying the amount, on a without-prejudice basis, to ensure continuity of iron ore supply during the critical winter months.
The company has filed a court application to vacate the arbitration award; if successful, this could result in a substantial rebate.
A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ont. As a fully integrated steel producer, the company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate.
