An Ohio Court has dismissed Cliffs Natural Resources’ lawsuit against Essar Steel Algoma.
The Cleveland-based iron and coal miner filed a US $90-million suit against the Sault Ste. Marie steelmaker last Jan. 12 claiming Essar has been in continuous breach of a taconite pellet sale and purchase agreement for the past two years.
Essar filed a counter claim against Cliffs for US $164 million in damages, “including a claim for certain outstanding credit payments owned by Cliffs.”
A Dec. 3 Essar news release announced the suit was dismissed in the District Court for the Northern District of Ohio.
Essar Steel Algoma is currently under bankruptcy protection in both Canada and the U.S.
Essar Steel Algoma’s CEO Kalyan Ghosh was pleased with the decision.
“We believe the issues between Cliffs and the company can be effectively addressed in conjunction with the CCAA proceeding and, if required, the US chapter 15 Court. The Ohio Court's action appears consistent with this belief.”
In October, Cliffs terminated its taconite pellet agreement with Essar, again accusing the company of breach of contract. In the interim, Essar is purchasing taconite from mines owned by U.S. Steel in northern Minnesota. Essar withdrew a motion for a temporary restraining order against Cliffs in an Ohio court, choosing instead to seek resolution in court.
