Brazilian flats steelmaker Usiminas announced this week it has signed an agreement with the Sudeste Port in Brazil to end a dispute over the extent of the obligations both parties assumed when signing a port services contract in February 2011.
Under the terms of the deal, the Sudeste Port will terminate the port services contract it had with MUSA, Usiminas’ mining subsidiary, and will pay the steelmaker a $62.5 million fine or its equivalent in BRL.
Despite terminating the deal signed in February 2011, both the Sudeste Port and Usiminas agreed to sign a new port operations services agreement.
The new deal will allow MUSA to have the right, but not the obligation, to ship through the Sudeste Port, located in the city of Itaguai, in the state of Rio de Janeiro, a total volume of 17.5 million mt of iron ore in the “next years.”
Usiminas did not clarify the exact timeline of the deal.