Essar Steel Algoma Reaches Agreement with Iron Ore Supplier
SAULT STE. MARIE, ON, June 13, 2013 /PRNewswire/ – Essar Steel Algoma Inc.
announced today that it has reached an agreement with its iron ore
pellet supplier, Cliffs Natural Resources Inc. The Agreement sets out
the terms and conditions of a negotiated amendment and extension of the
current Pellet Sale and Purchase Agreement which was scheduled to
expire 2016. Among other things, the Agreement addresses issues that
have arisen related to market price dynamics and extends Essar’s supply
agreement with Cliffs for a portion of its iron ore requirements from
2017 through to 2024. The Agreement supplements Essar’s supply
agreement with Essar Steel Minnesota LLC to satisfy Essar’s expected
iron ore pellet requirements come 2017 and beyond.
Essar Steel Algoma Chief Executive Officer Kalyan Ghosh remarked, “This
agreement delivers a revised formula that puts Essar’s iron ore cost in
line with the market price from 2014 to 2024. The extension provides
for supply under more favourable terms and is a necessary step toward ensuring the profitability and sustainability of
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. Revenues
are derived primarily from the manufacture and sale of rolled steel
products, including hot and cold rolled sheet and plate.
SOURCE Essar Steel Algoma Inc.