The Ontario Superior Court of Justice has approved a term sheet between Essar Steel Algoma and Cliffs Mining Co. for the supply of iron ore pellets from January 1, 2017, through December 31, 2020, with a proviso for a one-year extension. The term sheet, when combined with the existing pellet sale and purchase agreement provides surety of supply for 70% of Algoma’s pellet requirements.

“This term sheet comes as a result of a competitive process that secures the economic provision of this critical raw material for Algoma,” said Kalyan Ghosh, CEO Essar Steel Algoma. “It represents an important milestone in moving Algoma toward a successful restructuring and emergence from CCAA proceedings.”

Based in Sault Ste. Marie, Ontario, Algoma filed for creditor protection under the companies’ Creditors Arrangement Act on November 9, 2015. The sale and investment solicitation process was launched on February 11, 2016.