Essar Steel Algoma is the subject is a second breach-of-contract lawsuit launched against the Sault Ste. Marie manufacturer, this time by a U.S. coal producer.
International Coal Group Inc. is suing Essar for allegedly refusing to take delivery of metallurgical coal contracted last year, according to documents filed in a U.S. District Court for the Southern District of West Virginia.
ICG is seeking more than $75,000 in damages. The coal company alleges Essar Steel agreed to buy 65,000 tons of coal before the end of 2008, but took just 29,409 tons. ICG alleged Essar Steel purchasing manager Edward Bumbacco cancelled the orders last fall and said his company wouldn't be buying any more coal before mid-2009. ICG also accuses Essar of changing the payment terms.
Coke distributor Transcor Coke LLC is also taking the steel company to task.
They are suing Essar in a Pennsylvania district court accusing Essar for backing out of purchasing $32.9 million worth of raw material
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