On Friday, April 24, Brazilian iron ore producer Companhia Vale do Rio Doce (Vale) announced the signing of an agreement with Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) to end the long-running legal dispute over the Casa de Pedra iron ore mine located in the central Minas Gerais state.
Under the agreement, CSN will no longer have to sell excess iron ore from the mine to Vale. Furthermore, it will not have to pay the financial compensation Vale was seeking for the termination of the supply contract.
As part of the deal, Vale will supply up to three million metric tons of iron ore pellets to CSN by 2014.
Both companies agreed to end all pending legal issues regarding Vale's right of first refusal for the purchase of iron ore produced by the Casa de Pedra mine, Vale said in a statement.
Both sides have been waging a legal battle over the Casa de Pedra iron ore mine since the unwinding of cross-shareholdings between the companies in 2000. The mine's output rose by 25 percent in 2008 to 18.8 million mt.
Vale and CSN also agreed to halt legal action on issues related to the unwinding of cross-shareholdings, the statement said.