Erdemir comments on Jim Walters Resources dispute

On April 6, Turkish integrated steelmaker Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir) announced that, following a dispute concerning coking coal supply agreement with US coking coal producer and exporter Jim Walters Resources Inc., due to postponement of certain terms of the agreement Jim Walters Resources has opened a case against Erdemir in Alabama, US demanding $89.32 million.
 
Emphasizing that the issue should be solved by an arbitration committee in Ankara, Turkey by application of Turkish laws, as specified by the terms of agreement, Erdemir said that in response to the case, it will pursue all relevant necessary legal procedures.
 
As SteelOrbis previously reported, in early December last year Jim Walters Resources had announced that it had settled its dispute with Erdemir over 280,000 metric tons of premium coking coal that the steelmaker had contracted to purchase during the 2008-2009 contract year at $319 per metric ton.
 
Prior to the disputed deliveries, Jim Walters Resources had already delivered half of the original contract total of 560,000 metric tons and received payment in full for the shipped volume at the original contract price.
 
In January, it had been announced that Erdemir would accept delivery of all remaining carryover tons of coal between April 1, 2010, and March 31, 2011.