Cliffs Natural Resources and Essar Steel Algoma announced Thursday that they have entered into an agreement to extend the iron ore Pellet Sale and Purchase Agreement between the two companies to 2024. The previous agreement was expected to expire in 2016. The agreement includes Essar's minimum volume iron ore pellet purchases from Cliffs beyond 2016 and pricing for 2013 through 2024.
Essar Steel Algoma Chief Executive Officer Kalyan Ghosh remarked, "This agreement delivers a revised formula that puts Essar's iron ore cost in line with the market price from 2014 to 2024. The extension provides for supply under more favourable terms and is a necessary step toward ensuring the profitability and sustainability of the business."