“The matter of supply is currently in dispute and before a federal judge in Cleveland, Ohio. Essar Steel Algoma fully expects Cliffs to honor the supply agreement until such time as the matter has been justly resolved," the company said in a press release.

On 6 October 2015, Cliffs announced it was ending the sale of taconite pellets to Essar because it had made “multiple and material breaches under the agreement.”

“While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement,” Cliffs said in a press release.

The companies haven’t been on the friendliest of terms – the supply agreement was at the center of litigation between the two companies. Also, Essar Steel Algoma is building a taconite facility, which would put it into competition with Cliffs.

Cliffs CEO Lourenco Goncalves has said that the Essar plant will threaten Cliffs operations because it will create a glut of taconite in the U.S.