Iron ore co Cliffs wins arbitration over prices

NEW YORK, Dec 17 (BestGrowthStock) – Iron ore pellet maker Cliffs
Natural Resources (CLF.N: ) said on Friday it expects to collect
a cash payment from Canadian-based steelmaker Essar Steel
Algoma [ESSRGE.UL] following an arbitration ruling in their
dispute over prices.

Cliffs said a binding decision by a panel of the American
Arbitration Association redefined world prices for blast
furnace pellets, a factor used in determining annual price
increases or decreases under Cliffs’ supply agreement with
Essar Steel Algoma.

This redefinition entitles Cliffs to use an increase of
more than 95 percent over 2009 prices for seaborne blast
furnace pellets in the supply agreement’s pricing formula, the
Cleveland-based company said. Iron ore pellets are a key
ingredient in steel-making.

“With today’s final award, Cliffs anticipates collecting a
cash payment in the near term from Essar Steel Algoma for the
portion of revenue from 2010 pellet sales that were disputed in
the arbitration,” it said, without saying how much it would
receive.

Essar Steel Algoma is based in Sault Ste. Marie, Ontario
and is a part of India’s Essar Group industrial conglomerate.

(Reporting by Steve James; Editing by Richard Chang)

Iron ore co Cliffs wins arbitration over prices