Cleveland-based Cliffs Natural Resources announced that, effective October 5, it has terminated its Pellet Sale and Purchase Agreement with Essar Algoma. The company said the decision was made as a result of Essar Algoma’s 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
In response, Essar Steel Algoma has filed a request for a Temporary Restraining Order. The matter 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.
Based in Sault Ste. Marie, Ontario, Essar Algoma Steel is a fully integrated steel producer. Founded in 1901 as Algoma Steel, the company was acquired in June 2007 by Essar Steel Holdings Ltd.
