Cliffs Natural Resources announced that it has terminated an agreement to supply Essar Steel Algoma in Sault Ste. Marie with iron ore pellets.
The Cleveland iron ore miner, most noted in the North for its ill-fated attempt to develop a chromite mine in the James Bay lowlands, said the decision was made as a result of the Sault steelmaker’s “multiple and material breaches” under a pellet sale and purchase agreement.
The decision took effect Oct. 5.
“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 is the main supplier of taconite pellets to Essar. The two companies have endured a litigious relationship over the years, with Cliffs accusing the Essar of being in breach of a contract, but the supply agreement remained intact until now.
